Cytomedix snaps up stem cell biotech Aldagen for a bargain price

Posted under Aldagen, Blog, Companies, Cytomedix, Diagnostics, Funding, Medical Devices, Medical Supply, Mergers and Acquisitions, Pharmaceuticals, Startups, Stem Cells, Universities, Videos by John Carroll

Just 10 months after abandoning its second effort to go public, Aldagen is selling out to a small regenerative medicine company for just $16 million in shares and the chance to earn another chunk of stock based on the clinical success of its stem cell therapies.

The news isn't likely to spur much joy among its investors. Durham, NC-based Aldagen reportedly raised more than $60 million from venture groups, a list that includes Aurora Funds, Intersouth Partners, Harbert Venture Partners, CNF Investments and Tullis-Dickerson. They agreed to buy $5 million of shares in the acquiring company, Cytomedix, to help fund a Phase II study of their lead stroke treatment. And if the trial is successful they stand to earn the lion's share of 20 million shares of Gaithersburg, MD-based Cytomedix held out in milestones.

The buyout--which hands 17% of Cytomedix ($CMXI) to Aldagen shareholders upfront--will allow Cytomedix to expand its work in the regenerative medicine field. And the CEO--who saw Cytomedix shares jump 9% on the news this morning--had no qualms touting the bargain price on the deal.

"We view the acquisition of Aldagen as an opportunistic transaction at an attractive valuation that will allow us to build and expand our new product development efforts with Aldagen's technology, intellectual property, people and clinical expertise," says Martin P. Rosendale. "In terms of maximizing opportunity for our shareholders while managing and mitigating risk, we feel this transaction is very advantageous."

Aldagen has several development programs underway for its adult stem cell technology. Its strategy is focused on the regenerative powers of stem cells that express ALDH enzymes. Its investigators have been working on stroke, critical limb ischemia and other programs.

- here's the press release
- read the story from the News & Observer

For sale: Geron’s stem cell program

Posted under Blog, Companies, Diagnostics, Funding, Geron, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Stem Cells, Universities, Videos by Suzanne Elvidge

As the global downturn squeezes the industry, all biotech companies are looking to make the most of their assets and rationalize their costs, and Geron is no different. The company has recruited St Louis-based broker Stifel Nicolaus to help it sell off its cell therapies, CEO John Scarlett told the gathered industry execs at the J.P. Morgan Healthcare Conference this week in San Francisco.

Back in November 2010, Geron announced that it intended to stop clinical trials in spinal injury patients and sell its embryonic stem cell therapy program, leading to a huge drop in stock value. This morning the financial impact seems to have been small, with Geron opening at $1.71, falling two cents from yesterday's close of $1.73. However, the company's stock price has seen an overall fall of 67% over the last year.

Geron has been advertising the partnering opportunities on its website and, according to Scarlett, is in active discussions with partners. The stem cell programs are in preclinical and clinical development and include potential therapies for central nervous system disorders, heart disease, diabetes, immunotherapy and cartilage repair. Geron will tighten its focus on its cancer therapies and has two agents in Phase II clinical trials, with results expected in late 2012. If these are successful, Phase II proof-of-concept data will give the company a solid scientific base to seek further partnerships or collaborations.

"Every company has to make decisions about what they can do, not just what they aspire, or like, to do," Scarlett told Bloomberg. "Today, more than ever, the resources of every biotechnology company at this conference are very finite."

The company has enough money to get through the clinical trials this year without seeking further funding, and the sale of the cell therapies could further boost funding. While embryonic stem cell therapies are still somewhat controversial, the clinical data that Geron has raised so far, and the areas of unmet need that it has targeted, could make this a tasty target.

- check out the article in Bloomberg

Related Articles:
Geron abandons pioneering stem cell program, lays off 66
Lou Gehrig's stem cell study makes promising advance
Pfizer stem cell study highlights sea change for a controversial field
Geron taps new CEO amid historic stem cell trial
Groundbreaking embryonic stem cell study gets green light in Europe

SDBN October 26th 2011 Happy Hour at Green Flash Tasting Room

Posted under Blog, Diagnostics, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Stem Cells, Universities, Videos by admin

You may know that San Diego is home to at least 36 fantastic breweries. Green Flash Brewery is a great example, and we are lucky that they opened a 4,000 square foot tasting room in the heart of biotech near Sorrento Valley. They have 30 of their great beers on tap, picnic tables outside (which remind me of the happy hours we had back in the genomics boom), and gourmet food trucks which visit nightly.

We thought it would be fun to have an informal happy hour from 5:30-8:30 p.m. October 26th. There will be no admission charge and beer and food will be available for purchase. We’ll have a contest to see who can collect the most business cards, and Comprendia staff will be circulating with iPads to review your LinkedIn profile and give tips.

Join us for our first SDBN Happy Hour, register here!

Event Details

Who: Biotechnology professionals in the greater San Diego area
What:SDBN October 26th 2011 Happy Hour at Green Flash Tasting Room
When: Wednesday, October 26th 2011, 5:30-8:30 p.m.
Where: Green Flash Tasting Room, 6550 Mira Mesa Boulevard, San Diego, CA 92121 (Directions below)
Cost: Free with food and beverage available for purchase (30 Green Flash beers on tap and TBD gourmet food truck)
Contact: http://sdbn.org/contact
For more information about the event: http://sdbn.org/october

Directions: From the west: From the 805 North or South exit Mira Mesa Blvd, head east for 2.0 miles, the Green Flash Tasting Room will be on the left/north side of the street at Flanders Drive. From the east: From the 15 North or South exit Mira Mesa Blvd, head west for 3.6 miles, the Green Flash Tasting Room will be on the right/north side of the street at Flanders Drive.