SCS signs with Chemicon

Stem Cell Sciences (AIM:STEM, SCS) has signed an exclusive agreement with Californian-based stem cells solutions provider Chemicon International, a wholly owned subsidiary of Serologicals Corporation (NASDAQ:SERO), for the manufacture and marketing of SCS' embryonic stem (ES) cell media to the research and drug discovery market.

The total value of the deal to SCS is in excess of US$2.5 million over the next few years, with SCS receiving an upfront licence fee, milestone payments relating to technology transfer and scale-up, as well as trade-mark and royalty payments based on product sales.

"Chemicon is well positioned to both manufacture and distribute SCS's ES cell media and leverage the market opportunity within the global stem cell markets," said SCS' Edinburgh-based CEO Peter Mountford in a statement. "This will provide SCS with significant revenue streams from early sales of the product."

While the specific constituents of SCS's novel ES cell media are proprietary, SCS program manager Paul Bello said that it is foetal calf serum free and therefore a more "defined" media.

"It's a cleaner system," he said. "It's able to maintain mouse embryonic stem cells more efficiently than other media can."

SCS's ES cell media will be marketed under the SC Proven brand name.

The current embryonic stem cell growth media market is valued in excess of US$20 million and is growing.