UK stem cell firm seeks 10 mln stg from July IPO
By James KilnerWed Jun 22,10:49 AM ET
A Scotland-based stem cell research firm is looking to raise 10 million pounds ($18.3 million) by floating on London's junior stock market next month to fund work on science which has stirred global controversy.
Stem Cell Sciences Plc said it would use the money to set up a subsidiary in the United States to add to the one in Japan, develop research and establish another laboratory in England.
"We want to expand our opportunities," Chief Executive Peter Mountford told Reuters on Wednesday. "This is one of the great opportunities in medical research."
Stem cells are master cells which scientists hope can be coaxed into growing into any type of cell in the human body.
They can be extracted from human embryos but the embryos are destroyed in the process.
Supporters of stem cell research say it could revolutionise medicine by providing ways to replace diseased tissue and treat conditions like cancer, heart disease, Alzheimer's and diabetes.
But opponents say it is unethical to destroy human embryos and investors, in Europe at least, have shied away from research which is likely to take years to produce a marketable treatment.
There are a handful of publicly listed stem cell firms in the United States, but none in Europe after Britain's ReNeuron was taken private in 2003 following a slide in its share price.
Stem Cell Sciences has already sold intellectual property to some of the world's major drug companies, Mountford said.
"We should be able to match the money raised from the IPO with revenue from pharmaceuticals (companies) bringing the total to 20 million pounds and that should carry us through the two year period," he said in a telephone interview.
The offer, planned for London's Alternative Investment Market (AIM) next month, will mean around a third of Stem Cell Sciences shares are freely floated.
Britain has taken a lead in supporting the science by promising millions of pounds in funds but other countries have been less receptive.
A June referendum in Italy failed to relax a law which bans all research on human embryos and the United States currently only allows limited research into stem cells.
However, recent biotechnology public offerings in Britain have disappointed.
Earlier this month British drug maker ProStrakan Group Plc raised 180 million pounds in its IPO, down from an estimated 270 million pounds it had originally wanted. ($1=.5461 Pound)
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