StemCells 4Q Loss Widens on Costs

For the quarter ended Dec. 31, the company lost $7.8 million, or 10 cents per share, compared with a narrower loss of $5.9 million, or 8 cents per share, a year ago.

Revenue rose to $30,000 from $12,000 the year before.

The company recently terminated acquisition discussions with PCT, citing unfavorable market conditions and the inability of the parties to reach agreement on terms. But StemCells said it will "continue to proactively evaluate other possible business transactions."

For the fiscal year, StemCells lost $25 million, or 31 cents per share, compared with a loss of $18.9 million, or 25 cents per share, in fiscal 2006. The company blamed the increased loss on higher expenses associated with the continued expansion of operations in cell processing and clinical development.

Total revenue, mainly attributable to grants and licensing agreements, slipped to $57,000 from $93,000 in 2006.

Cash, cash equivalents and short-term marketable securities totaled $36.5 million at the end of 2007, down from $51.8 million at the end of 2006.

"We have been actively engaged with the U.S. Patent and Trademark Office with regard to its re-examination of five of our 50 plus issued or allowed U.S. patents and remain confident that all five of these patents will reissue," said Martin McGlynn, president and chief executive, in a statement.