StemCells says Q2 net loss hits $3.99 million

By Angela McDaniels

Seattle, Aug. 1 - StemCells, Inc. said its net loss increased slightly to $3.99 million, or $0.05 per share, for second quarter ended June 30 from a net loss of $3.87 million, or $0.06 per share, for the second quarter of 2005.

The increase in net loss was due to an increase in operating expenses primarily attributable to the expansion of the company's operations in cell processing and clinical development, according to a company news release.

The increase in operating expenses was partially offset by an increase in interest income attributable to a higher average cash balance and higher yield on investments in 2006.

Cash and cash equivalents were $59.91 million at June 30, compared with $24.54 million at Dec. 31, 2005.

StemCells said the increase in cash was due to a $35.84 million private placement of 11.75 million shares of common stock to institutional investors at $3.05 per share in April.

StemCells is a development-stage biotechnology company based in Palo Alto, Calif., that develops cell-based therapeutics to treat diseases of the nervous system, liver and pancreas.

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