Tuesday, December 2, 2008

ACT, Korean biotech form new stem cell joint venture

By Mass High Tech Staff

Worcester biotech Advanced Cell Technology Inc. and Korean biotech CHA Biotech Co. Ltd. have formed a new stem cell technology development company called Allied Cell Technology, to be based in Worcester. The international joint venture will use ACT’s hemangioblast cell technology to develop human blood cells.

The developments may be used to address the human blood shortage, particularly in military situations.

Allied Cell Technology will be majority owned by CHA, with ACT (OTC: ACTC) licensing its technology for a $500,000 license fee from CHA, the companies reported. ACT will also work to pull in funding grants for the new joint venture.

Leading the new company in Worcester will be Young Chung, as well as Shi-Jiang Lu and the ACT hemangioblast team. Robert Lanza of ACT will serve as the chief scientific advisor of Allied Cell Technology.

ACT is operating on a limited budget, but has reduced its debt from $49 million to $13 million in the last three years, according to CEO William M. Caldwell IV. To cut operating expenses, the company announced its plans to close a Charlestown research facility and Alameda, Calif., headquarters; the plan relocates the ACT headquarters to its founding city of Worcester.

ACT reported a quarterly loss in March of $9.5 million on total quarterly revenue of $120,000.