International Stem Cell Corporation sets up $10m European subsidiary

26.07.10 The International Stem Cell Corporation wants to set up shop in Europe. The California-based biotechnology company announced today that it had entered into Memorandum of Understanding with ARG Vermogensverwaltung AG, a German Investment Fund, to create a new European subsidiary to be funded with up to $10 million of capital derived from ARG and other independent sources in Europe. ISCO Europe will be licensed by ISCO to develop and market therapeutic products derived from ISCO’s technology throughout the Euro Currency Countries and Switzerland. New technologies developed by either ISCO or ISCO Europe will be made mutually available.
ISCO develops human parthenogenic stem cells derived from unfertilized human eggs. These can be “immune-matched” to millions of persons of differing sexes and racial backgrounds. To date ISCO has successfully derived and characterized 10 hpSC lines, including both HLA homozygous and HLA heterozygous lines. One of these lines carries the most common HLA haplotype found across racial groups within the US population, according to the company.
Even if ISCO Europe's capitalisation of up to $10m is funded by a private equity investment by ARG and other European investors, ISCO will still own about 80% of the subsidiary which will be floated at the Deutsche Borse. ISCO Europe’s shares will not be convertible into ISCO shares on any US exchange. With the construction of ISCO Europe the Californian ISCO wants to gain access to new capital as well as to new scientific input. "We are creating an investment, research and development, marketing and distribution entity by adding capital and human resources from Europe to help fulfil ISCO’s goal of supplying its proprietary cells and cell therapies to the world,” said Kenneth Aldrich, Chairman and co-founder of ISCO.