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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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forward looking statments may have been made
copyright 2011 Ellis Martin Report
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International Stem Cell Corp is a paid sponsor of The Ellis Martin Report
International Stem Cell Corporation (OTCBB:ISCO (www.internationalstemcell.com), the first company to perfect a method of creating human "parthenogenetic" stem cells from unfertilized eggs, has formed a partnership with Absorption Systems to utilize ISCO's parthenogenetic stem cell-derived human corneal tissue to measure drug disposition, drug safety and drug-drug interactions. The collaboration between the companies is focused on using Absorption Systems' know how in creating in vitro assay systems to develop a superior method of testing drugs that will also reduce the use of laboratory animals currently necessary for such tests.
In the past, researchers have grown corneal cells in the laboratory, but ISCO is believed to be the only company to grow a self-assembling corneal construct suitable for toxicity testing in the laboratory and possibly suitable for corneal transplants. ISCO's corneal constructs include cell layers and structures normally found in a human cornea, as confirmed by an independent third-party laboratory. ISCO's proprietary lines of parthenogenetic stem cells remove the need for fertilized embryos and in a therapeutic setting, minimize the threat of immune rejection. This breakthrough was published in the peer-reviewed journal Cloning & Stem Cells (Volume 9, Number 3; September 2007:432-449 and, Volume 10, Number 1; March 2008:11-24).
"The combination of ISCO's skill in culturing human parthenogenetic stem cells and Absorption Systems' proficiency in performing tissue-based assays may provide a powerful and unique drug testing model for the pharmaceutical industry and the field of ophthalmology," commented Jeffrey Janus, president of ISCO. "In addition, this work complements ISCO's effort to use its parthenogenetic stem cells to create cell transplant therapies for diseases of the eye. We plan to further develop our corneal tissue technology with a goal of routinely growing living human corneas for ultimate use in human corneal transplants."
"ISCO's corneal construct, combined with Absorption Systems' expertise in assessing drug disposition, may provide pharmaceutical and ophthalmology researchers with new insight, without the need for animal models," said Patrick M. Dentinger, president and CEO of Absorption Systems. "Absorption Systems' services yield the type of definitive data expected by the FDA, so we believe that our combined products will be of great interest to researchers studying diseases of the eye."
ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):
International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true "Stem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.
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ABOUT ABSORPTION SYSTEMS:
Founded in 1996 by Patrick Dentinger and Ismael J. Hidalgo, Ph.D., Absorption Systems, LP focuses on performing assays that can predict the Absorption, Distribution, Metabolism, and Excretion (ADME) of small molecules using a variety of in vitro, in situ, and in vivo biological models. Absorption Systems supports these assays with state-of–the-art bioanalytical capabilities and preclinical formulation services. For more information, visit: www.absorption.com
FORWARD-LOOKING STATEMENTS:
Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.
ABOUT MILLIPORE
Millipore is a life science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, we collaborate with customers to confront the world's challenging human health issues. From research to development to production, our scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. Millipore Corporation is an S&P 500 company with more than 6,000 employees in 47 countries worldwide. www.millipore.com
ABOUT INTERNATIONAL STEM CELL CORPORATION:
International Stem Cell is a biotechnology company currently focused on developing therapeutic and research products. In the area of therapeutic product development, ISCO's objective is to create an unlimited source of human cells for use in the treatment of several diseases, including diabetes, liver disease and retinal and corneal disease through cell transplant therapy. In furtherance of this objective, ISCO has developed pluripotent human stem cells from unfertilized human eggs, and techniques to cause those stem cells to be "differentiated" into the specific cell types required for transplant. It has developed manufacturing protocols to produce the cells minimizing contamination with animal by-products, a characteristic likely to be important in meeting U.S. Food and Drug Administration requirements. ISCO also provides the specialized cells and growth media needed for therapeutic cell transplantation research to academic and commercial researchers in related fields. For more information, visit the ISCO website at: www.internationalstemcell.com
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