Stem Cell Therapeutics Corp.

Stem Cell Therapeutics Corp.

April 04, 2007 23:53 ET

Stem Cell Therapeutics Corp. Announces Fiscal 2006 Year End Financial Results

CALGARY, ALBERTA--(CCNMatthews - April 4, 2007) - Stem Cell Therapeutics Corp. (TSX VENTURE:SSS) (SCT), today announced its financial results for the period ended December 31, 2006.

Selected Highlights

During 2006, SCT achieved the following significant milestones:

- Appointed Dr. Alan Moore as the Company's President and Chief Executive Officer.

- Initiated and started enrollment in a Phase IIa clinical safety study for NTx™-265 in stroke patients at the University of California, Irvine.

- Formed a Clinical Advisory Board (CAB) with three leading stroke physicians in the United States, Canada and Europe.

- Released positive results from its Phase I clinical trial in support of NTx™-265 demonstrating that no drug related adverse events were encountered and that both drugs under study were detected in the cerebrospinal fluid following intramuscular administration.

- Released results from a key preclinical study of NTx™-265 at the European Stroke Conference.

Subsequent to year-end SCT has:

- Closed a $2 million private placement on February 1, 2007 and a second $2 million private placement on March 27, 2007.

- Appointed four leading stroke and stem cell scientists to SCT's Scientific Advisory Board (SAB).

- Supported the presentation by Dr. Steven Cramer on SCT's key preclinical data and Phase IIa clinical trial design at the International Stroke Conference in San Francisco, Feb 5-7, 2007.

"I am very excited by the progress that we are making" said Dr. Alan Moore, President and CEO of SCT. "NTx™-265, our lead product for treating stroke, is currently being tested on human stroke patients in a Phase IIa clinical trial. We intend to release interim results in the near future, to be followed by final results later this year. We have also initiated the process to submit our IND application for a Phase IIb double-blinded, randomized, placebo-controlled clinical trial focused on efficacy measures. This would involve approximately 120 stroke patients in a number of different centers in North America. We hope to begin this important clinical program before year-end. Programs for other indications have also been identified and we will pursue those as well in 2007".

Capital Position

As of April 4, 2007, the gross proceeds raised since inception by the Corporation totaled $14,053,760. As of December 31, 2006 the working capital for SCT was $408,938 ($4,868,735 as of December 31, 2005). With the completion of the two private placements in the first quarter of 2007, SCT currently has approximately $4.1 million in cash.

Outstanding shares as of December 31, 2006 totaled 53,801,364 common shares and 6,360,000 class B shares, and 4,533,333 common share options. Outstanding shares as of April 4, 2007 are 68,072,364 common shares, 6,240,000 class B shares, 7,000,000 common share purchase warrants, and 5,533,333 common share options.

Financial Review

SCT recorded a net loss of $4,759,929 ($0.09 per common share) for the fiscal year ended December 31, 2006. Research and development costs for the year were $2,159,527, general and administrative expenses were $942,775, professional fees were $469,411 and interest income was $85,677.

About NTx™-265: NTx™-265 is a therapeutic regimen of two drugs being developed by SCT for the treatment of stroke. Human chorionic gonadotropin (hCG) is the first drug administered in the regimen, and aims to increase the number of neural stem cells (NSCs) located in the brain of a patient suffering from a recent stroke. Erythropoietin (EPO) is the second drug administered in the regimen, and aims to promote the differentiation of these newly formed NSCs into new neurons. New neurons thus formed are anticipated to provide benefit to the patient through the replacement of the brain cells that were lost or damaged by the stroke. Animal studies have shown a significant recovery in motor function in animals that have received a stroke followed by the NTx™-265 therapy. Currently SCT is enrolling patients in a phase IIa clinical trial in the United States in order to investigate the safety and efficacy of NTx™-265 in humans.

About Stem Cell Therapeutics Corp.: Stem Cell Therapeutics Corp. is a biotechnology company focused on the development and commercialization of drug-based therapies to treat central nervous system diseases. SCT is a leader in the development of therapies that utilize drugs to stimulate a patient's own resident stem cells. The company's programs aim to repair neurological function lost due to disease or injury. Our currently enrolling phase IIa clinical program for NTx™-265 targets the treatment of stroke by repurposing approved and clinically well defined drugs. The company's extensive patent portfolio of owned and licensed intellectual property supports the potential expansion into future clinical programs in numerous neurological diseases.

These securities have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons unless an applicable exemption from U.S. registration requirements is available.

Except for historical information, this press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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