Series C to Support Continued Development of Stem Cell Therapy

    SAN DIEGO, July 16 /PRNewswire/ -- Novocell, Inc., a stem cell
 engineering company, today announced the closing of a $25 million Series C
 financing. The financing included participation by existing investors
 Sanderling Ventures, Asset Management Company and Pacific Horizon Ventures
 and was led by Johnson & Johnson Development Corporation.
     "This very successful financing was driven by Novocell's stem cell
 engineering expertise, superb scientific team and execution of key
 milestones toward the development of a first-in-class cell therapy for
 insulin requiring diabetics," said Alan J. Lewis, President, Chief
 Executive Officer and Director of Novocell. "Future milestones include the
 preclinical development of our diabetes cell therapy, enhancement of our
 cancer stem cell program to create new therapies for cancer and the
 development of additional cell therapies based on our significant know-how
 and research expertise in this arena."
     Novocell's platform technologies -- human embryonic stem cell (hESC)
 engineering, cell encapsulation and drug discovery -- are designed to
 address the need for an unlimited supply of specialized human cells for the
 treatment of a wide range of chronic cellular diseases. The Company has
 developed a process to efficiently convert hESC into insulin-producing
 pancreatic endocrine cells. Additionally, its cell encapsulation technology
 provides a means by which such cells could potentially be delivered to
 patients without the need for chronic immunosuppression by providing a
 protective, biocompatible coating for cells that shields them from the
 immune system. The Company is currently conducting human clinical trials
 examining the safety and efficacy of subcutaneous implants of encapsulated
 human primary islet allografts in patients with Type 1 diabetes of long
 standing duration.
     About Novocell
     Novocell is a stem cell engineering company with research operations in
 San Diego, CA, and Athens, GA, dedicated to creating, delivering, and
 commercializing cell and drug therapies for diabetes and other chronic
 diseases. Novocell is the first company to efficiently engineer human
 embryonic stem cells into definitive endoderm, the gatekeeper cells that
 differentiate into many other cells, tissues and organs. Novocell has three
 primary technologies: stem cell engineering, cell encapsulation, and drug
 discovery. The company was founded in 1999 and merged with CyThera and
 BresaGen in 2004. For more information, visit http://www.novocell.com.
     About Johnson & Johnson Development Corporation
     Organized in 1973, Johnson & Johnson Development Corporation (JJDC) is
 the venture capital subsidiary of Johnson & Johnson. JJDC makes private
 equity investments in venture funded healthcare companies. Portfolio
 investments include those in the field of pharmaceuticals, biotechnology,
 medical devices, diagnostics and consumer products. For more information,
 visit http://www.jjdevcorp.com.
 
 

SOURCE Novocell