Wednesday, March 11, 2009

ACT stem cell treatment lifted by $5M credit facility

By Mass High Tech staff

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Advanced Cell Technology Inc. has pulled in a $5 million credit facility to further develop its stem cell treatment of eye diseases and to file an investigational new drug application. The financing comes from an unnamed life sciences fund affiliated with an ACT shareholder and requires exclusive use on ACT’s retinal pigment epithelium cells.

Terms of the facility may require the Worcester-based biotech firm to issue Series A-1 Convertible Preferred Stock in order to drawdown funds. ACT (OTC:ACTC) also paid the investor 5 percent of the credit facility as a commitment fee.

The company is focused on treating age-related macular degeneration using its RPE cells. Overall, ACT estimates the eye disease market at $28 billion.

In January, the U.S. Food and Drug Administration cleared California biopharmaceuticals firm Geron Corp. to conduct the world’s first human clinical trial of embryonic stem cell-based therapy. The move prompted ACT to speed up its own IND for stem cell-based therapy. Its RPE cells have effectively improved eyesight in rats, according to the company.

ACT formed a new international joint venture in December with Korean biotech CHA Biotech Co. Ltd. called Stem Cell & Regenerative Medicine International. CHA Biotech also has a location in Worcester.