Scimitar Equity Blog

BTIM Announced (4/29/10) that it has agreed to acquire the Singapore-based company ES Cell International Pte Ltd (ESI) to accelerate BioTime’s development of human stem cell-based therapeutics.   The acquisition is expected to close next week.

Established in 2000, ESI has been at the forefront of advances in human embryonic stem cell technology, being one of the earliest distributors of hES cell lines to the research community. More recently, ESI has produced an additional 6 new clinical-grade human embryonic stem cell lines that were derived following principles of Good Manufacturing Practice (GMP) and currently offers them for potential use in therapeutic product development. ESI’s assets also include 20 patent families, including 50 issued patents in the field of stem cell biology, and a significant equity position in the Israel-based stem cell company CellCure Neurosciences Ltd. BioTime plans to combine the newly-acquired assets with its ACTCellerate^TM and ReCyte^TM technologies to accelerate the development of numerous human therapeutic products.

At closing, BioTime will issue approximately 1.38 M of its common shares and 300,000 warrants to purchase additional common shares. This new class of BTIM warrants will have an exercise price of $10 per BTIM common share and a term of 4 years. In exchange for these shares and warrants, BTIM will acquire all of ESI’s outstanding ordinary and preferred shares, and all of ESI’s approximately $35 M of debt and accrued interest. ESI has no significant liabilities other than the debt obligations that BioTime will own after the acquisition.

BTIM is a biotechnology company focused on regenerative medicine and blood plasma volume expanders. BioTime develops and markets research products in the field of stem cells and regenerative medicine through its wholly owned subsidiary Embryome Sciences, Inc. BioTime’s subsidiary OncoCyte Corporation focuses on the therapeutic applications of stem cell technology in cancer. BioTime also plans to develop therapeutic products in China for the treatment of ophthalmologic, skin, musculo-skeletal system and hematologic diseases, including the targeting of genetically modified stem cells to tumors as a novel means of treating currently incurable forms of cancer through its subsidiary BioTime Asia. In addition to its stem cell products, BioTime develops blood plasma volume expanders, blood replacement solutions for hypothermic (low temperature) surgery, and technology for use in surgery, emergency trauma treatment and other applications. BioTime’s lead product, Hextend^®, is a blood plasma volume expander manufactured and distributed in the U.S. by Hospira, Inc. and in South Korea by CJ CheilJedang Corp. under exclusive licensing agreements. Additional information about BioTime can be found on the web at www.biotimeinc.com.