International Stem Cell Corporation

The Ellis Martin Report: Interview with International Stem Cell Corporation's Founder/Co-Chairman

TEMR: Welcome to The Ellis Martin Report.  I’m Bob Lange.  We’re talking with Kenneth Aldrich, Executive Chairman of International Stem Cell Corporation, trading on the OTC Market with the symbol ISCO.   International Stem Cell Corporation has been one of the most exciting companies trading in the biotech sector with respect to non-embryonic stem cell development.  They have a proprietary process and commercial products that give them a tremendous edge in the marketplace. Ken welcome back to the show. I understand there’s a lot going on at International Stem Cell Corporation.  Can you give us at least a portion of it?
Ken Aldrich: I certainly can Bob.  Let me start with the most recent developments in our skincare subsidiary because I know that’s something lots of people are interested in.  We have over the past 6-months completely remodeled both the marketing model and the structure of our skincare subsidiary. Originally we were marketing solely through internet based and through direct response marketing. And, that was very successful back in December particularly because it was the Christmas season. In fact we sold, I think, something over a million dollar worth of product in one marketing push. However, we realized that as we go forward it’s much more important for us to build a broader base of users of the skincare product and multiple distribution channels. Frankly the response from that has been actually quite gratifying. It was a very, very responsive audience considering where we went and that’s part of the plan. We have also been simultaneously beginning to build a marketing program that will go out to spas and resorts and most of those are parts of chains so that with relatively little marketing effort we can reach a very large base of potential customers.  The third thing that we’re doing is we’re in the process of setting up an international distribution network. And, we have also increased our supply of product so that we don’t run into the same problem we had last December where we sold more product then we had in inventory and had to really scramble. So, we’ve completely reengineered the skincare program.  I think you’ll find it in the future much more stable, growing steadily and hopefully a very exciting source of revenue for the company. So, we’re very, very pleased with that.

TEMR: So now you have a broader base in the consumer revenue stream but, what about business to business sales?

Ken Aldrich: We’ve been doing significant expansion.  Again, in the revenue generating side of our business is with Lifeline Cell Technology where we have now opened up distributorship throughout several countries in Asia and are beginning now to see the results from those various distributorships. And, that has great promise for us to take what has been a $2 or $3 million dollar a year business and expand that quite significant. What happens is a researcher begins with a small amount of our media or our cells, does some experiments in the laboratory and if they work properly then he buys or she buys more and gradually expands. And, if things go really well they end up in clinical trials and ultimately all the way in the community of those who are actually receiving treatment using whatever process has been developed. So, at each step of the process people are using more and more of the media and more and more of the cells that we provide for research.

TEMR: Since we have just a few minutes left could you touch on the therapeutic side of International Stem Cell Corporation?

Ken Aldrich: I’ll certainly do my best.  In therapeutics we just had some announcements or an announcement that I think is potentially very significant and that is that we are now in animal trials with a class of neurons that we have developed using our parthenogenetic stem cells, proprietary to us and no one else in the world can use them without a license from us, to develop a new class of neurons that we think has great promise for treating Parkinson’s disease and possibly other diseases. But, our initial focus is in the Parkinson’s area. And, we have started the first animal studies on those neurons.  We think that we have a very good shot at a very successful product. Now, like all of our therapeutic products, this is not tomorrow’s news.  These will be ongoing through animal trials and ultimately human trials. We’re working, frankly, in the near-term with the revenue today.  We’re working in the intermediate term with the rapidly growing revenue through our business to business products. And, we’re working in the long-term toward the ultimate goal of billion dollar products actually treating human diseases. So, we’re excited and we think it’s a continuum towards ultimate success.  Eventually what we hope is that when people think of International Stem Cell Corporation they will think of us as the cells that are used inside almost every therapy that’s known to man that uses stem cells.  And, we’re putting in place right now the building blocks to get there.

TEMR: We’ve been speaking with Ken Aldrich, Executive Chairman of International Stem Cell Corporation trading on the OTC Market under the symbol ISCO.  Ken thank you for taking the time to speak with us today.

Ken Aldrich: You’re most welcome. I was happy to do so.

TEMR: Remember you’re urged to consider closely the disclosure in the company’s latest reports and registration statements filed with the FCC before investing. You can find the link to more information on International Stem Cell Corporation at ellismartinreport.com.  For The Ellis Martin Report, I’m Bob Lange.
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The Ellis Martin Report: Interview with Ken Aldrich of International Stem Cell Corp.

Ken Aldrich of International Stem Cell Corp (ISCO.OB) on the Present and Future of Stem Cell Research and Applications
The Ellis Martin Report: International Stem Cell Corporation trades under the symbol ISCO.OB on the Over the Counter Bulletin Board and is based in Carlsbad, California where I have the pleasure of interviewing Executive Chairman, Kenneth Aldrich. International Stem Cell has developed a process to derive stem cells similar to Embryonic Stem Cells without the need for fertilized embryos and with minimal exposure to non-human cells. These factors provide ISCO a unique leadership role in the field of regenerative cell therapy. Additionally, Lifeline Cell Technology, a wholly-owned subsidiary of International Stem Cell Corporation (ISCO), develops, manufactures and markets high-quality human primary cells, stem cells, media and reagents for sale to pharmaceutical, academic and government scientists. The company’s management pioneered the development of the normal human cell culture market through the creation of Clonetics® Corporation in the 1980s and has over 20 years combined experience in research, development, manufacturing, quality control, marketing and sales of human cell culture products. Lifeline’s products are distributed in the United States and Europe. Ken Aldrich, welcome to the program.
For the complete text version of this broadcast: http://www.ellismartinreport.com/node/148

The Difference Between Adult Stem Cells and Embryonic Stem Cells

This is Ken Aldrich.  I am Chairman of International Stem Cell Corporation and thought I’d talk for just a minute, or maybe a couple of minutes, about the different kinds of stem cells.  People are always asking, “What’s the difference between an adult stem cell and an embryonic stem cell?”   Let me try to make this as simple as possible.  Adult stem cells are those that are derived from the human body any time after the first, probably, week or two of development of the fetus in the womb. So, cells that come from cord blood, or cells that come from embryonic tissue as well as cells that come from an adult human being are all categorized as adult cells and as a result they can become certain types of cells in the body and can be changed into certain other kinds, but not all kinds.  That limits the range of diseases that you can possibly treat with adult cells; leukemia, for example, in some cases very well, you can’t treat diabetes and so on. 
The second broad category is what’s called pluripotent stem cells.  These are cells that can be converted into any cell in the body.  The best known example of pluripotent stem cells are embryonic stem cells which we have all heard about in the news.  These are created from a fertilized human egg and have all of the ethical issues that people debate about, but also have the ability to become any cell in the human body. 
The next category, that you haven’t heard as much about are what are called Induced Pluripotent Cells of IPS cells.  These are derived from adult tissue, but then that tissue is reprogrammed back to its primal state and you get a true pluripotent stem cell as if it were an embryonic cell.  The problem with these is that in order to get back to that state, you have to introduce what are called vectors which often are cancer causing agents and you are also involving genetic manipulation, so there is a big question as to whether the FDA will ever approve those kinds of cells for therapy.  What they are wonderful for, however, is research.  Scientists, for example, can reprogram cells from a patient who has Alzheimer’s or Parkinson’s and perhaps be able to study the development of that disease and find out exactly what goes wrong and when.  So they are very useful.
The third category is parthenogenetic stem cells.  These happen to be the ones created by our company, International Stem Cell Corporation.  We think they are the best so I will acknowledge a little bit of bias right here.  These are cells that have all the characteristics of embryonic stem cells, but they are created without using a fertilized human egg.  That has two huge advantages; one, obviously, is we take the ethical issue off of the table, the second advantage is however the genetic makeup is much simpler.  There is no sperm from the father to add to the genetic complexity.  As a result of this, we can take a single cell line, match it to the immune response system of literally hundreds of millions of people.  That leads to what we hope will be the final solution for creating a true human cell bank that anyone can tap into and get cells that match their own needs, on demand, when they need them.  Think of it like a blood bank, if you will, except that these are human cells and they are more complicated. 
That’s a quick overview.  If you are curious about more please go to our website at www.Internationalstemcell.com and if you browse around there a bit you’ll find quite a bit more to learn about stem cells and in particular about our parthenogenic stem cells. 
 
Thanks for listening.

International Stem Cell Corporation Offers a Possible Alternative to Animal Corneal Testing

Please take a moment to listen to International Stem Cell Corporation Chairman, Ken Aldrich, as he discusses the benefits of using human corneas developed in Petri dishes as an alternative to testing on the eyes of innocent rabbits. 
This is Ken Aldrich and I am chairman of International Stem Cell Corporation and I am here to talk to you a little bit about rabbits.  One of the things that most people don’t know is that cosmetic companies, drug companies and pesticide makers all have to test their products to see whether they do damage to the human eye.  Unfortunately, the way they do it is to take poor innocent rabbits and place them in what for all  the world looks like stocks from medieval Europe or something and pour into their eyes the chemicals that they want to test whether it is a cosmetic or a pesticide or some sort of a drug to find out what damage it does to the rabbit’s eyes from that they hope to determine whether it is safe for humans Well, we at International Stem Cell Corporation are not terribly pleased with that process and we think we have a solution.  We have developed in the Petri dish a human cornea that has all of the requisite layers of the human corneal tissue that would be necessary for such a test and we are right now determining whether or not that tissue has the same permeability as the normal human eye.  If we are right, what we hope to be able to do is to provide these kinds of human eyes in a Petri dish to drug companies so that they can test all of the chemicals and all of the pesticides and all of the cosmetics that they want without ever harming a rabbit and get better results and do it at a fraction of the cost.  It’s just one of our ways of trying to make the planet a little better. 

ISCO and Absorption Sytems to Commercialize Stem Cell Derived Human Corneal Tissue for Drug Test

International Stem Cell Corporation (OTCBB:ISCO (www.internationalstemcell.com), the first company to perfect a method of creating human "parthenogenetic" stem cells from unfertilized eggs, has formed a partnership with Absorption Systems to utilize ISCO's parthenogenetic stem cell-derived human corneal tissue to measure drug disposition, drug safety and drug-drug interactions. The collaboration between the companies is focused on using Absorption Systems' know how in creating in vitro assay systems to develop a superior method of testing drugs that will also reduce the use of laboratory animals currently necessary for such tests.
In the past, researchers have grown corneal cells in the laboratory, but ISCO is believed to be the only company to grow a self-assembling corneal construct suitable for toxicity testing in the laboratory and possibly suitable for corneal transplants. ISCO's corneal constructs include cell layers and structures normally found in a human cornea, as confirmed by an independent third-party laboratory. ISCO's proprietary lines of parthenogenetic stem cells remove the need for fertilized embryos and in a therapeutic setting, minimize the threat of immune rejection. This breakthrough was published in the peer-reviewed journal Cloning & Stem Cells (Volume 9, Number 3; September 2007:432-449 and, Volume 10, Number 1; March 2008:11-24).
"The combination of ISCO's skill in culturing human parthenogenetic stem cells and Absorption Systems' proficiency in performing tissue-based assays may provide a powerful and unique drug testing model for the pharmaceutical industry and the field of ophthalmology," commented Jeffrey Janus, president of ISCO. "In addition, this work complements ISCO's effort to use its parthenogenetic stem cells to create cell transplant therapies for diseases of the eye. We plan to further develop our corneal tissue technology with a goal of routinely growing living human corneas for ultimate use in human corneal transplants."
"ISCO's corneal construct, combined with Absorption Systems' expertise in assessing drug disposition, may provide pharmaceutical and ophthalmology researchers with new insight, without the need for animal models," said Patrick M. Dentinger, president and CEO of Absorption Systems. "Absorption Systems' services yield the type of definitive data expected by the FDA, so we believe that our combined products will be of great interest to researchers studying diseases of the eye."
ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):
International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true "Stem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.
To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.
ABOUT ABSORPTION SYSTEMS:
Founded in 1996 by Patrick Dentinger and Ismael J. Hidalgo, Ph.D., Absorption Systems, LP focuses on performing assays that can predict the Absorption, Distribution, Metabolism, and Excretion (ADME) of small molecules using a variety of in vitro, in situ, and in vivo biological models. Absorption Systems supports these assays with state-of–the-art bioanalytical capabilities and preclinical formulation services. For more information, visit: www.absorption.com
FORWARD-LOOKING STATEMENTS:
Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

International Stem Cell Corporation Announces a Manufacturing and Supply Agreement with Millipore Co

International Stem Cell (OTCBB:ISCO) announced today it has entered into a worldwide distribution agreement with Millipore Corporation (NYSE: MIL) to manufacture living cells and cell culture products to be sold through Millipore’s distribution network.
“To work with a company such as Millipore that has sales of over $1.5 billion and is known throughout the world is a wonderful opportunity for ISCO. This partnership will lead to a significant expansion in ISCO’s revenue generation through the manufacture of high quality cells and cell culture products. Millipore is a leader in the life science industry, with a strong sales force and distribution network serving biotechnology firms, pharmaceutical companies and laboratories around the world. The ISCO-Millipore team will provide valuable research tools for cell biologists across the world,” according to Jeffrey Janus, ISCO’s president.
International Stem Cell, an emerging stem-cell therapy company, is the first company to perfect a method of creating human stem cells from unfertilized eggs. These cells, called “parthenogenetic” stem cells promise to alleviate two critical problems inherent in cell transplantation today, immune rejection and the ethical issues associated with the use of fertilized human embryos. ISCO, through its wholly-owned subsidiary, Lifeline Cell Technology (Walkersville, MD) develops and manufactures cell culture products for research use. Such manufacturing generates revenue and therapeutic production capacity for ISCO.
“We are very excited about driving our partnership forward with ISCO,” said Don O’Neil, Millipore’s Director of Marketing for Stem Cells. “With this relationship, Millipore gains access to a world class team of scientists responsible for developing many of the 'first-in-class' specialty media products on the market. The ISCO offering perfectly complements our strategy to become the industry leading specialty and stem cell culture complete solutions provider.”
ABOUT MILLIPORE
Millipore is a life science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, we collaborate with customers to confront the world's challenging human health issues. From research to development to production, our scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. Millipore Corporation is an S&P 500 company with more than 6,000 employees in 47 countries worldwide. www.millipore.com

ABOUT INTERNATIONAL STEM CELL CORPORATION:
International Stem Cell is a biotechnology company currently focused on developing therapeutic and research products. In the area of therapeutic product development, ISCO's objective is to create an unlimited source of human cells for use in the treatment of several diseases, including diabetes, liver disease and retinal and corneal disease through cell transplant therapy. In furtherance of this objective, ISCO has developed pluripotent human stem cells from unfertilized human eggs, and techniques to cause those stem cells to be "differentiated" into the specific cell types required for transplant. It has developed manufacturing protocols to produce the cells minimizing contamination with animal by-products, a characteristic likely to be important in meeting U.S. Food and Drug Administration requirements. ISCO also provides the specialized cells and growth media needed for therapeutic cell transplantation research to academic and commercial researchers in related fields. For more information, visit the ISCO website at: www.internationalstemcell.com

International Stem Cell Corporation Arranges $3 Million Equity Financing

OCEANSIDE, Calif.--(BUSINESS WIRE)--International Stem Cell Corporation (OTCBB: ISCO - News) has entered into a subscription agreement with an accredited investor to sell three million dollars ($3,000,000) of Series C Preferred Stock at a price of $1.00 per share. The funding is to occur in three tranches. The first, for $700,000, closed August 20, 2008. The second closing for $1,300,000 is scheduled for September 23, 2008 and the final closing of $1,000,000 is scheduled for December 15, 2008, subject to determination by the investor that no material adverse event has occurred. The investor will be entitled to one of the Company’s seven board seats. Each $1.00 share of Series C Preferred will be convertible into shares of common stock at $0.25 per share, subject to antidilution provisions if the company subsequently issues shares at a lower price. The Series C Preferred has priority over the Common Stock on any sale or liquidation of the Company and a preference before any dividend can be paid on Common Stock in any year. Each share of Series C Preferred has the same voting rights as the number of shares of Common Stock into which it is convertible.
The funds will support work towards pre-clinical trials using parthenogenetic stem cells for retinal and liver disease and diabetes; advance the construction of therapeutic cell manufacturing facilities and support ongoing operations.
“These funds will go a long way toward insuring that ISCO continues to move forward without interruption in its quest to provide the cells needed to make regenerative medicine therapies available to millions of people throughout the world,” said ISCO’s CEO, Kenneth Aldrich.
The securities were offered and sold to the investor in a private placement transaction made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933 and Rule 506 promulgated thereunder. The Investor is an accredited investor as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933.
About International Stem Cell Corporation (ISCO.OB):
International Stem Cell Corporation (ISCO) is a California biotechnology company focused on developing therapeutic and research products. ISCO’s technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists also have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will not be immune rejected after transplantation into millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true “Stem Cell Bank” and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.
To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.
Forward-Looking Statements
Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects,” “estimates,”) should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.
Key Words: Stem Cells, Biotechnology, Parthenogenesis, Liver disease
Contact:
International Stem Cell Corporation
Kenneth C. Aldrich, CEO, 760-940-6383
kaldrich@intlstemcell.com
or
Jeffrey Janus, President, 760-940-6383
jjanus@intlstemcell.com
or
William Adams, Chief Financial Officer, 760-940-6383
wadams@intlstemcell.com

A Frank Discussion About Stem Cell Research with International Stem Cell CEO

Ken Aldrich, CEO of International Stem Cell Corporation, addresses some timely issues regarding stem cell research. To learn more about ISCO or to contact them regarding further questions, please visit their website here

Meet Ken Aldrich the co-founder of International Stem Cell Corporation

Welcome to this podcast. I am Ken Aldrich, Chairman and co-founder of International Stem Cell Corporation.
International Stem Cell Corporation recently announced that our scientific team, led by our Chief Scientist, Dr. Elena Revazova, has created a new class of human stem cell lines that do not involve the use of fertilized eggs and may enable hundreds of millions of people of different sex, ages and racial groups to benefit from cell based therapy with cells that will not be rejected by the patients own immune system after transplanting. The article was published in the on line edition of the well known peer-review publication, Cloning and Stem Cells on December 19, 2007
Since that time, we at International Stem Cell Corporation have received many questions about this discovery, most of which revolve around two basic questions: how are these cells different from what already exists and why does it matter? Since we are a public company that trades on the Bulletin Board--our symbol for those who are curious is ISCO.OB--a great deal of information about these questions has already been filed with the SEC and also been posted to our website, but I think a summary will be helpful, particular for those unfamiliar with the science of therapeutic cell implantation.
The 20th Century saw the development of whole organ transplants as a means to treat injury or diseases affecting the heart, liver, kidneys and other organs. The 21st Century has already seen the beginnings of a newer and even more promising therapy: the transplantation of human cells to enable damaged organs to begin functioning again on their own. Some of the new cell based treatments are quite advanced; others are in development, but all transplant programs to date share three basic problems:
First, the only source of organs or cells has been human donation, usually from cadavers, or cells derived from fertilized embryos. The need for cadavers has meant that only a tiny portion of the patients who needed cell or organ therapy could obtain a donation.
Second, until now, the only source of cells that had the potential produce cells in unlimited quantity for any organ of the body have been cells derived from fertilized embryos. That has raised religious and ethical questions that have hampered research and continue to do so.
Finally, all of treatments available so far require heavy use of immune suppressing drugs to prevent rejection of the new cells by the patient’s immune system.
That is why Dr. Revazova’s two recent discoveries are so important. They open the door to obtaining an unlimited supply of cells, without the use of cadavers or fertilized embryos, and that can be immune matched to hundreds of millions of patients so that that they will not be immune rejected after transplantation.
Our cell lines are known by the tongue twisting name of “Parthenogenetic HLA-homozygous” lines, and you can expect to be hearing a lot more in the months to come about Parthenogenesis, HLA matching and “homozygous” cell lines. However, the easiest way to think of what we are doing is to think of a blood bank in which a physician can find blood to match the need of any patient. HLA matching is more complex, but the concept is the same—provide cells that will not be rejected after transplanting.
To put that in perspective, if you are a 5 year old child whose immune system is still developing and you are diagnosed with a dreaded disease, there may cell transplant treatments already being tested or in use that might provide a cure, but they will be of no use to you because of the difficulty of finding a tissue match and the danger to a young child of taking large doses of immune suppressing drugs. The drugs could be far more dangerous to a child than the disease itself.
We have just taken the first giant step toward solving that problem.
Our cells also have great potential in the treatment of genetic disorders such as Alzheimer’s, diabetes, muscular dystrophy, Parkinson’s disease, and many others because we can provide cells from cell lines that do not carry the same genetic defects, but that is a complex subject that is better left to a later discussion.
There is still much work to be done to make cell based therapy available to all who could use it and no one company can do it all. That is why, although our scientists are the only people in the world who have perfected a technique for creating parthenogenetic HLA-homozygous cells, we have filed patents that describe how such cells can be created so that we can share with others the secrets of how to do it. Our goal is to work with researchers throughout the world to assure that, in time, no person who could be helped by a cell transplant need ever go without that help because there were not enough cells available that were compatible with his or her immune system.