15th Feb 2008 07:00
Stem Cell Sciences plc15 February 2008 Press Release Stem Cell Sciences Implements Strategic Reorganisation ("SCS", "The Company") 15th February 2008 Stem Cell Sciences plc (AIM:STEM, ASX:STC) today announced the implementation ofa comprehensive restructuring programme, designed to improve financial,operational and growth performance, as well as provide a greater focus on itscommercialisation efforts in the application of stem cell technologies. Theseinitiatives are the result of a strategic review that the Board, in conjunctionwith the new CEO Dr Alastair Riddell, commenced in 2007. Highlights:• Driving revenue growth by accelerating commercialisation activities and leveraging the company's intellectual property position• Consolidating commercial operations and all senior management into existing and expanded facilities in Cambridge, UK• Closing of facilities in Edinburgh, UK• Streamlining of operations in Melbourne, Australia to become a centre for research excellence Driving Revenue GrowthWith historical leadership in stem cell technology, SCS is in a prime positionto take advantage of the growing need by the pharmaceutical industry for anautomated, scalable supply of high quality cell lines for drug research. SCSintends to increase its business development efforts in this potentiallylucrative market opportunity. In addition, SCS will initiate a programme torealise full commercial value of its existing intellectual property portfoliothrough the signing of a series of non-exclusive licenses. Streamlining of OperationsSCS is in the process of moving into expanded laboratory and administrationfacilities on the Babraham Research Campus in Cambridge, UK, immediatelyadjacent to their existing facility. These new premises will become theoperational headquarters from March 1st, housing all administrative andoperational functions as well as all senior management, including Dr AlastairRiddell, the company's recently appointed CEO. The Cambridge site is alreadyhome to SCS' pharmaceutical services division, which the company believes willbe a key driver of future growth for the company. The Company will close its Edinburgh, UK, operations due to take place by theend of April 2008. All employees have been offered positions in Cambridge but itis expected that some will opt not to move and these will be made redundant. The facility in Melbourne, Australia, will now fully concentrate on advancingpioneering stem cell research, such as the advances being made with ratembryonic stem (ES) cells. Managerial ChangesAs part of the restructuring, several members of the management team havedecided not to relocate with the company. These include Executive Directors DrPeter Mountford, Chief Technology Officer (Australia) and Hugh Ilyine, VicePresident and Chief Operations Officer (Edinburgh). Dr Mountford will remainwith the Company as a Non-Executive Director and consultant specifically toevaluate new strategic growth opportunities. In addition, the Finance Director and Company Secretary, Sue Furber, has electednot to relocate. She will be replaced by Mr Giorgio Reggiani, who will act asinterim Finance Director and Company Secretary. Mr Reggiani is a CharteredManagement Accountant with extensive senior financial managerial experience. Hecurrently also serves as Finance Director at Sareum Holdings plc. "This restructuring will provide the basis of a new, morecommercially-orientated Stem Cell Sciences. We believe we have the people, theproducts and technological understanding to play a key role in the growing stemcell research market. These changes provide increased operational efficiency andplace us in a better position to deliver shareholder value," commented Dr.Alastair Riddell, Chief Executive Officer of SCS. - Ends - For further information, please contact: Stem Cell Sciences plcAlastair Riddell, CEO01223 499160 Halsin PartnersMichael Sinclair, Director020 7084 5955 Talk Biotech (Australia)Fay Weston+61 4 2220 6036 Notes to EditorsStem Cell Sciences plc (SCS, AIM:STEM, ASX:STC) is a leading provider of cellsand cell culture media to the burgeoning stem cell research market. Thesuccessful application of stem cells in both research and clinical applicationsis reliant on the reproducible supply of pure, fully characterised stem cellsand stem cell-derived specialised cells such as nerves and muscle. By providingthese products, to the life sciences industry and academia for use in basicresearch and drug discovery, Stem Cell Sciences has multiple potential revenuestreams. Stem Cell Sciences has multiple industry collaborations, including MilliporeCorporation for the marketing and distribution of HEScGROTM, its serum freemedia for the growth of human embryonic stem cells and Merck & Co for the use ofmouse neural stem cell technology for research applications. It recentlyannounced deals with a major pharmaceutical company in the field of diabetesresearch and with the Myelin Repair Foundation in the USA in neurologicalresearch. To access cutting edge technologies on a rapid and on-going basis, Stem CellSciences has built an exceptional network of highly interactive collaborationswith academic centres of excellence in the stem cell field. These collaborationshave been the source of our founding technologies and continue to provide anexpanding pipeline of products and intellectual property that are central to theCompany's strategy and success. For further information on the company please visit: www.stemcellsciences.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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