Replies to post #165702 on Biotech Values

[biomaven0]

SCTPF

Just one note of caution here - they are still quite a long way from the clinic on this project as it's a biologic and they haven't yet done the tox studies. So maybe 2015, putting them about a year behind Weissman.

Given the very low market cap they will basically have to either pretty much recapitalize the company or partner here.

Very thinly traded stock.

Peter

[goochbart]

Stem Cell (SCTPF) Don Just an observation- David Allan, Chairman of the Board of SCTPF was former CEO and Chairman of the Board of YM BioSciences who sold this company to Gilead for $510M more recently. Can he do it again?

[DonShimoda]

Since CD47 is also expressed on healthy cells, a concern is that anti-CD47 will also block healthy cells from expressing CD47 and consequently they will be "eaten" by mistake. The hope is that the lack of calreticulin expression in healthy cells will allow the anti-CD47 drugs being developed by Stanford and SCTPF to safely initiate phagocytosis in cancer cells. Calreticulin is a pro-phagocytic molecule that is highly expressed on the surface of several types of human cancer cells, including acute myeloid and lymphoblastic leukemias. Importantly, calreticulin is not expressed on healthy cells. If CD47 is the "don't eat me" signal then think of calreticulin as the "eat me" signal. It appears that in order for phagocytosis to occur requires both the CD47 "don't eat me" signal be turned off and a calreticulin "eat me" signal to be turned on. The hope is that turning off the "don't eat me" signal in healthy cells alone won't be sufficient to initiate phagocytosis because healthy cells don't express the calreticulin "eat me" signal.

[jq1234]

VLST-007 (hCD47-hFc): It would be interesting to see where this one turns up.

VLST’s most advanced drug candidate was VLST-007 (hCD47-hFc), a dimeric protein comprised of human CD47 extracellular domain fused to the Fc portion of a human IgG1 molecule that is designed to modulate the activity of CD47 and its extracellular ligand, signal regulatory protein A (SIRPa). CD47-Fc binding to SIRPa inhibits the activation of myeloid cells, which are important mediators of inflammation in autoimmune diseases. VLST-007 is being developed as an inhibitor of inflammation for use in autoimmune and inflammatory conditions and has completed preclinical development. VLST is actively seeking a partner for the continued development of the programme.

http://ojs.pharmadeals.net:5555/index.php/pdr/article/view/cr1807/html

VLST-007 (hCD47-hFc) was sold to unnamed buyer last month:

The names of the buyers, and the price they paid for VLST’s components, aren’t being disclosed... One buyer has scooped up an antibody drug candidate for cancer that’s being prepped for mid-stage clinical trials [I assume CD40 program licensed from PFE]. Another buyer has obtained VLST’s proprietary drug discovery engine, preclinical drug candidates, and related intellectual property.

http://www.xconomy.com/seattle/2013/08/07/vlst-after-nine-years-and-50m-sheds-assets-and-winds-down/

[DonShimoda]

This financing is highly dilutive but I believe it significantly changes the risk profile of the company. Frankly, I didn't think they would be able to raise this amount of funding. Also, nice to see some quality names in the deal.
-----------------

STEM CELL THERAPEUTICS COMPLETES $33 MILLION PRIVATE PLACEMENT

Toronto, Canada – December 13, 2013 – Stem Cell Therapeutics Corp. (TSX-V:
SSS; OTCQX: SCTPF), an immuno-oncology company developing cancer stem cellrelated
therapeutics, is pleased to announce that it has raised gross proceeds of $33
million through a private placement of units. The financing proceeds will be used to
advance the Company’s CD47 cancer stem cell program through IND-enabling studies,
manufacturing and phase 1 clinical trials.

“The transformation of Stem Cell Therapeutics into a global competitor in the immunooncology
space requires a value-driving asset backed by world class science, access to
significant capital, experienced leadership, as well as a strong and knowledgeable
investor base. As of today we have all those components,” commented the company’s
CEO, Dr. Niclas Stiernholm.

The financing was led by a prominent U.S. healthcare fund, with participation from
several other premier U.S. healthcare institutional investors, including Special Situations
Funds, Ridgeback Capital, Merlin Nexus, Sabby Capital, venBio, Opaleye Management
and HSMR Advisors. Bloom Burton & Co. acted as lead agent for the private placement.
ROTH Capital Partners, LLC acted as placement agent in the United States.

“The significant investment and validating sponsorship from these reputable life sciencefocused
funds is the result of a concentrated effort to introduce the U.S. investment
community to our CD47 immune checkpoint program since the acquisition of Trillium
Therapeutics in April 2013,” added Dr. Stiernholm.

In connection with the offering, the Company issued 157,142,858 units at a price of $0.21
each. The units consisted of either one common share and three-quarters of a common
share purchase warrant (“Common Share Units”) or one Series 1 Non-Voting First Preferred Share and three-quarters of a common share purchase warrant (“Preferred Share Unit”). Of the total Units issued, 79,247,693 units were Common Share Units and 77,895,165 units were Preferred Shares Units. Each whole warrant entitles the holder to purchase one common share at a price of $0.28 at any time prior to expiry on December 13, 2018. Following the offering, the Company has 121,752,380 common shares issued
and outstanding (144,031,618 on a fully diluted basis.

http://bit.ly/18qAIT8