New Companies Come in All Shapes and Sizes

Prior to ringing in the new year, International Stem Cell Corp. (ISC) was already an "early-stage" biotech company specializing in human stem cell production for therapeutic use. On January 8, 2007, ISC announced completion of a deal with the inactive company, BTHC III Inc. in a "reverse" merger agreement that rendered ISC publically-owned. The merger includes subsidiary Lifeline Cell Technology (LLC), which provides stem cells for research to some major players in the biotech industry, such as NIH and the US Army. According to executives of ISC, the reverse merger strategy saved the company and potential investors both time and money. The company is one of only about a dozen companies world-wide that produce specialized stem cells of human origin. Their strategy is to expand into the stem cell therapy industry through a series of mergers and acquisitions. This is certainly a company to watch, particularly considering the ethical debates in the USA on issues of human stem cell research. If nothing else, however, from a business perspective, perhaps there might be something to their unique approach to entering the realm of public trade.