Scimitar Equity Blog

STEM’s  Q1/10, revenue was $230 K.  The net loss was $6.124 M, or $(0.05) per share.

The increase in revenue ( 307%) was $230 K compared to $57,000 for Q1/09. The growth in revenue in 2010 was primarily due to the consolidation of the Stem Cell Sciences Plc (SCS) operations, which added product sales revenue from SCS  portfolio of specialty cell culture products, as well as increased licensing and grant revenue include the operations of since 4/1/09. STEM’s operating loss was $7.6 M (an increase of $678 K or a 10%, compared to Q1/09). Operating expenses increased $807 K  (compared to Q1/09), primarily due to the consolidation of the SCS operations. The increase in operating expenses was due to increased R&D expenses. SG&A expenses were unchanged in 2010.  

Also in Q1/10 , STEM recorded other income of $1.516 M to reflect a decrease ($123,9 M from Q1/09) in the estimated fair value of warrant liability.  STEM raised $1.088 M in gross proceeds through the sale of 882,200 shares of common stock. Cash and cash equivalents as of #/31/10 totaled $31.337 M (compared with $38.618 M at 12/31/09).

Q1/10 Highlights included:

• Launched GS1-R^TM, the first commercially available medium to enable the derivation, maintenance and growth of true (germline competent) rat embryonic stem cells. GS1-R is expected to have significant utility in the creation of genetically engineered rat models of human disease for use in academic, medical and pharmaceutical research,
• Launched GS2-M^TM, a new cell culture medium that enables the derivation and long-term maintenance of true mouse iPS cells,
• The 1^st  patient  in a Phase I clinical trial of  HuCNS-SC^(R) product candidate in Pelizeaus-Merzbacher Disease (PMD) was enrolled and dosed,
• The United Kingdom (UK) Intellectual Property Office granted patent number GB2451523 with broad claims covering true (germline competent) pluripotent rat stem cells and genetically engineered rats derived from these cells,
• Submitted a protocol to the FDA for initiation of a 2^nd clinical trial of HuCNS-SC cells in infantile and late infantile neuronal ceroid lipofuscinosis (NCL – Batten disease). The proposed new trial is designed to further assess the safety of HuCNS-SC cells in NCL, while also examining the ability of the cells to affect the progression of the disease.