International Stem Cell Corp (ISCO) (OTCBB:ISCO) announced Tuesday that third quarter revenue soared as the stem cell tech company continues to advance its subsidiary Lifeline Skin Care (LSC).
Lifeline's skin care line is based on International Stem Cell's core proprietary technology, parthenogenesis, which results in the creation of human stem cells from unfertilized eggs, avoiding the ethical issue associated with the destruction of viable human embryos.
The first two products of the line, a Day Serum and a Night Serum, which were launched late last year, both contain extracts from stem cells which, in combination with vitamin complexes, provide rejuvenating effects, including improvement in skin tone and elasticity, as well as the appearance of fine lines and wrinkles.
The subsidiary announced last week two overseas distribution deals for the products, agreeing to distribute the products in the United Arab Emirates through a partnership with facial plastic surgeon, Dr. Gregory S. Keller of California, and engaging Dr. K. McIsaac to distribute Lifeline's products in Australia and New Zealand.
Parent company International Stem Cell Corp, which is focused on the therapeutic applications of human parthenogenetic stem cells, also holds subsidiary Lifeline Cell Technology (LCT), which produces and markets specalized cells for therapeutic research.
For the three months to September 30, 2011, ISCO reported revenue of $0.84 million, more than double the sales in the same period of last year, driven by strong sales from the initial launch of Lifeline Skin Care, which began operations in the fourth quarter of 2010.
In addition, the company said that steady growth in sales from ISCO’s other subsidiary, Lifeline Cell Technology, also contributed to the boost in revenue.
ISCO continues to invest in the development of new technologies, products and channels of distribution.
For the quarter, development expenses, excluding cost of sales, were $3.60 million, an increase of 15 percent compared to the third quarter of 2010, reflecting increased research and development activities on therapeutic programs, and new product development for both subsidiaries, the company said.
“We are pleased with the rapid growth in sales of our two subsidiaries, LSC and LCT. Together, these business units are providing much-needed capital to help support our growth as well as the research leading to the development of new stem cell technologies and products,”said co-Chairman and CEO, Dr. Andrey Semechkin.
Aside from the skin care progress, during the latest quarter, ISCO has reported several operational developments, including the successful completion of the first series of preclinical trials of its neuronal cells derived from human parthenogenetic stem cells (hpSC).
The company said the cells were able to survive in the brains of mice without giving rise to tumours, representing a key milestone towards possible therapeutic applications of hpSCs, including the treatment of Parkinson's disease.
ISCO's Lifeline Cell Technology subsidiary also began selling products through new distribution channels in Japan, Korea, Singapore, Malaysia and Indonesia, expanding its business throughout Asia.
In addition, Lifeline Skin Care launched a new sales channel to resorts and destination spas.
Looking forward, president and COO, Kurt May, added:"Our focus continues to be on maximizing the performance of our operating subsidiaries, advancing the development and commercialization of our therapeutic products and strengthening our organization and operating systems to accommodate our anticipated rapid and significant growth.”
ISCO, with $2.58 million of cash and equivalents at the end of the quarter, said net loss was narrowed during the period to $2.67 million, or three cents per share, from $3.03 million, or four cents per share, a year earlier.
