SAN DIEGO, Aug. 8, 2014 /PRNewswire/ -- ViaCyte, Inc., a privately held regenerative medicine company developing a stem cell-derived islet replacement therapy for the treatment of diabetes, announced today that it has completed a private equity financing transaction, providing the Company with $5.4 million through the sale of Series C-1 Preferred Stock, together with warrants to purchase common stock. The first closing of the Series C-1 financing occurred in July 2013. This additional investment brings the total invested in the Series C-1 financing to $16.5 million. A nonprofit corporation and several individuals participated in the offering.
The Company will use the funds to pursue clinical development of its VC-01™ product candidate. ViaCyte also recently announced the submission of an Investigational New Drug application and a Medical Device Master File to the U.S. Food and Drug Administration seeking permission to begin clinical evaluation of the product candidate.
"We are pleased to complete this financing to further advance the VC-01 product candidate to human clinical trials and provide a potential new alternative to patients with type 1 diabetes," said Paul Laikind, Ph.D., President and Chief Executive Officer of ViaCyte.
ViaCyte's VC-01 product candidate consists of pancreatic progenitor cells, called PEC-01™ cells, which are derived from a proprietary human embryonic stem cell line, encapsulated in ViaCyte's Encaptra® device. When implanted under the skin, the PEC-01 cells are designed to mature and further differentiate into insulin-producing beta and other endocrine cells that regulate blood glucose in a manner similar or identical to the islets that normally comprise the endocrine pancreas.
ViaCyte is a private regenerative medicine company focused on developing a novel cell therapy for the treatment of diabetes. The Company's lead product candidate is based on the production of pancreatic progenitor cells derived from human pluripotent stem cells. These progenitor cells are implanted in a durable and retrievable encapsulation device. Once implanted and matured, these cells are designed to secrete insulin and other regulatory factors in response to blood glucose levels. The VC-01 combination product is being developed as a potential long-term diabetes treatment without immune suppression, and without risk of hypoglycemia or other diabetes-related complications.
ViaCyte is headquartered in San Diego, California with additional operations in Athens, Georgia. The Company is funded in part by CIRM and JDRF.
All statements, other than statements of historical fact, that address activities, events or developments that ViaCyte intends, expects, projects, believes, hopes or anticipates will or may occur in the future are forward-looking statements. These statements are based upon certain assumptions and assessments made by ViaCyte's management and are subject to a number of material risks and uncertainties. Actual results may differ materially, and reported results should not be considered as an indication of future performance. The forward-looking statements represent ViaCyte's assumptions and assessments as of the date of this press release, and ViaCyte undertakes no obligation to correct, update or revise the forward-looking statements in this press release for any reason.
SOURCE ViaCyte, Inc.