ViaCyte generates US$10 million for further stem cell testing

By IVCPOST Staff Reporter

Jul 12 2013, 05:48 AM EDT

A developer of diabetes treatment methods from human embryonic stem cells,ViaCyte, has more than US$10 million in a private equity funding.

As reported this week, the funds will go to ViaCyte's research for type 1 diabetes, the privately held company said.

Sanderling Ventures and Asset Management Co. and Johnson & Johnson Development Corp. are the company's two largest current investors involved in the funding. The acquisition represents a corresponding investment of a $10.1 million offer from the California Institute for Regenerative Medicine, the state's stem cell central agency.

VC-01, a ViaCyte's product, contains cells derived from human embryonic stem cells.

The product has already been tested in animals, and company is setting up labs so that it can begin clinical trials on humans. According to Chief Executive Paul Laikind, if all goes according to its plan, ViaCyte may well begin human clinical trials by the first or second quarter of next year.

The use of embryonic stem cells in clinical trials is practiced by a few companies in the United States.