Biotech Capital reduces stake in C3

BioTech Capital (ASX:BTC) has reduced its shareholding in Clinical Cell Culture (ASX:CCE, C3) from about 19 per cent to 12 per cent.

The listed investment group has sold over 2.3 million C3 shares since early January, at an average of $0.21 a share, to make a total of nearly $486,000 worth.

"We're still the largest shareholder by a long way," said BioTech Capital's managing director Harry Karelis.

C3's shares have taken a battering in recent months after its ReCell products faced regulatory setbacks. In January the US FDA asked the company for more performance data before it could approve ReCell for sale in the US. And in December 2005, the Australian TGA announced that it intended to reject approval for ReCell unless C3 provided more information about clinical data, product information labels, printed instructions for use and viral safety testing.

"The set back with the FDA means that our timelines have been pushed out by about 12 months," said Karelis. "From a portfolio management point of view -- given it's one of our largest holdings -- we just decided that we needed to reduce our exposure somewhat."

However, Karelis believes that the TGA issue has been 'miscommunicated'. "The TGA said to [C3] that they're meeting in March 2006 and based on the information they currently have, they can't approve it," said Karelis. "As far as I am aware, the company has now submitted all the information where the TGA said that there were gaps. And they meet next month."

Karelis said that BioTech capital had no concerns about C3's technology. "It's only a function of time in terms of market penetration, and we own 30 million shares - or did," he said.

BioTech Capital made a 100 per cent profit on the shares, which it bought for $0.105, said Karelis.

C3's shares were trading at around $0.34 in early December, falling to $0.185 at the time of writing, down $0.005 since the market opened today.