It’s a common tale about the chronic shortage of commercial lab space in Los Angeles: A fast-growing bioscience company frequently has to move away to realize its full potential.
This month there was a happier ending for StemCyte Inc., which develops therapies using stem cells harvested from umbilical cord blood. StemCyte, which a few years ago began outgrowing its original Arcadia headquarters, has relocated across the San Gabriel River (605) Freeway to a new home in Covina more than double the size of the old one.
“Our stem cell products now treat patients for more than 35 diseases in 32 countries and we really needed room to expand our manufacturing facility,” said Chief Executive Ken Giacin. The company was able to talk the owner of a former blood storage bag manufacturing facility into subdividing the site, with StemCyte taking half.
Umbilical cord blood is rich in stem cells that are capable of growing into a variety of human cells and organs. StemCyte’s products are more commonly used to treat blood diseases such as leukemia, but other applications are being explored.
The privately held company had 40 percent revenue growth in 2007, Giacin said.
StemCyte’s private umbilical-cord blood banks offer mothers at participating hospitals the opportunity to pay for storage of their infant’s umbilical cord blood for future use by the child or his or her family a controversial practice that critics say has little medical benefit. But unlike other private banks, families also can contribute for free to a separate donor bank that is used in research and for making the company’s therapeutics.
The relocation comes in time for the company to show off its new facilities to stem cell researchers attending next week’s sixth annual International Umbilical Cord Blood Transplantation Symposium in Los Angeles. The event now attracts more than 500 researchers from around the world and was first organized by the company’s chief medical officer, Dr. Larry Petz.
Around 40 of the company’s 100 employees work in the Los Angeles research and manufacturing facility, with another 40 at the company’s Taiwan facility.
Terner Leaving Prospect
Dr. Jacob Terner, who until March was chief executive of struggling managed care provider Prospect Medical Holdings Inc., is close to cutting the remaining ties to the company he founded.
Terner on May 12 resigned as Prospect’s executive chairman and from the board of directors, as well as equivalent roles in several subsidiaries.
Appointed as chairman is Sam Lee, who succeeded Terner as chief executive. Lee was chief executive of Alta Hospitals System, which Prospect acquired in August.
Prospect Medical Holdings operates four community hospitals in the greater Los Angeles area and manages a network of more than 9,000 physicians who are part of independent physician associations or medical clinics. It also has a 38 percent stake in a partnership that owns Culver City’s Brotman Medical Center, which is in Chapter 11 reorganization.
The company said Terner will continue to serve as director, officer and sole shareholder of Prospect Medical Group Inc. and each of Prospect’s other affiliated physician organizations until a successor can be found. Terner did not respond to requests for comment.
More Funding for Kythera
Investors have poured an additional $40 million into Los Angeles-based biotech company Kythera Biopharmaceuticals, which is developing aesthetic skin treatments.
The company said this third venture round was led by Jafco Co. Ltd., and included new investors BBT Capital Management/Apothecary Capital and Prairie Financial Management.
Current investors Versant Ventures, Arch Venture Partners, Prospect Venture Partners, Altitude Life Science Ventures and Wilson Sonsini Goodrich & Rosati also participated.
Hironori Hozoji of Jafco will join the firm’s board as part of the funding.
Kythera’s lead product candidate removes unwanted fat just below the skin.
Device Gets Support
An invention by a Harbor-UCLA Medical Center physician that helps predict which pregnant women are most at risk for premature birth has gotten a financial boost.
JumpStart Inc., a Cleveland firm, is investing $350,000 in CerviLenz Inc., which is developing an Food and Drug Administration-cleared device that helps predict preterm birth risk by accurately measuring cervical length.
Cervilenz’s chairman and product inventor is Dr. Michael Ross, a maternal-fetal medicine specialist and chairman of obstetrics and gynecology at Harbor-UCLA Medical Center.
CerviLenz is based in Cleveland.
Staff reporter Deborah Crowe can be reached
[email protected]
or at (323) 549-5225, ext. 232.
