Tuesday, September 9, 2008

ACT closes Charlestown lab, officially a Worcester firm again

Advanced Cell Technology Inc. said that its is closing its research facility and Charlestown and won’t be renewing its lease on its headquarters in Alameda. Calif., in an effort to cut operating expenses.

According to officials from ACT (OTC: ACTC), which was founded in Worcester and has the bulk of its operations there, the moves will result in a drop in annual operating expenses by $5 million to $6 million. A company spokesperson confirmed that the move means the company’s headquarters has returned to Worcester. Numbers for any potential job cuts were also unavailable, but the head count is "way down from our levels at the end of the first quarter."

ACT said it is focused on finding a partner its proprietary preclinical programs in treating retinal disease with embryonic stem cell therapy, and the manufacturing of red blood cells for the treatment of blood and cardiovascular indications based on embryonic stem cell therapy. In addition, the company is looking for funding for a Phase 2 trial for its autogolous adult stem cell therapy for the treatment of heart disease, which it obtained from its $5 million purchase of Charlestown-based Mytogen Inc. in September 2007. The program, called Myoblast, has successfully completed four Phase 1 clinical trials and has clearance from the U.S. Food and Drug Administration to begin the Phase 2 trials.

ACT in August licensed to a subsidiary of Calif.-based BioTime Inc. some of its non-core patent technology covering techniques in developing stem cell lines for at least $1.3 million. The company still owns its proprietary technology in the area of turning adult cells into pluripotent stem cells and other alternative technologies, according to officials.

ACT, whose shares trade over the counter, reported a 2007 net loss of $15.9 million on revenue of $650,000.