ViaCyte, Inc. raises $10.6 Million in a Private Financing to Support Clinical Development of its Cell Therapy Product for Insulin Dependent Diabetes

Via ViaCyte:

San Diego, California, July 10, 2013 — ViaCyte, Inc., a leading regenerative medicine company focused on developing new approaches to treat major diseases through the application of a stem cell-derived cell therapy, announced today that it completed a private equity financing transaction, providing the Company $10.6 million through the sale of Series C-1 Preferred Stock, together with warrants to purchase stock.  The financing, conducted as a rights offering to ViaCyte Series B and C Preferred Stock holders, included the Company’s largest existing investors – Johnson & Johnson Development Corporation, Sanderling Ventures and Asset Management Company (Johnson Trust).

This funding serves as a match for a $10.1 million Strategic Partnership Award (SPA) that was approved last October by the California Institute for Regenerative Medicine (CIRM) to support clinical evaluation of VC-01, ViaCyte’s promising encapsulated cell-therapy product being developed as a transformative therapy for patients with type 1 and insulin-dependent type 2 diabetes.  In addition, ViaCyte may sell additional shares of Series C-1 Preferred Stock and warrants in one or more subsequent closings that may occur during the remainder of 2013.

The Company will use the funds to pursue clinical development of VC-01. VC-01 is a development-stage product that consists of pancreatic precursor cells (designated PEC-01) manufactured through directed differentiation of stem cells sourced from a proprietary human embryonic stem cell line, and encapsulated in a proprietary, immune protective medical device (the ENCAPTRA® device).  When implanted under the skin, the encapsulated cells are designed to further differentiate into insulin and other hormone-producing pancreatic cells that regulate blood glucose in a manner similar or identical to a normal pancreas.

Read more: http://viacyte.com/press-releases/viacyte-inc-raises-10-6-million-in-a-private-financing-to-support-clinical-development-of-its-cell-therapy-product-for-insulin-dependent-diabetes/