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

Friday, October 21st, 2011

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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