StemCells Inc (STEM) To Realign Company Around HuCNS-SC Platform, Layoff 25% of Workforce


With shares of StemCells Inc (NASDAQ:STEM) down over 65% since March, the company today has decided to make a major move by realigning itself. Perhaps disappointing to some shareholders, StemCells Inc (NASDAQ:STEM) will now concentrate their efforts solely on their HuCNS-SC Platform. The HuCNS-SC Platform centers around restoring function caused by spinal cord injuries, and the company currently has seen positive results in its Phase II Pathway Study.

According to StemCells Inc (NASDAQ:STEM) this realignment will save them about $20 million over the next two years and allow them to more quickly complete their Phase II Pathway Study. What these changes also mean is that the company will have to layoff approximately 25% of their current work force and incur around $400,000 in restructuring costs. They will also now suspend their Phase II Radiant Study in their AMD program.

The stock is down 9.49% or $0.045 following the news, hitting $0.429 per share. About 1.72M shares traded hands or 54.95% up from the average. STEM has declined 22.95% since May 20, 2015 and is downtrending. It has underperformed the S&P500 by 20.69%.

The institutional sentiment decreased to 1.9 in Q2 2015. It’s down 0.10, from 2 in 2015Q2. The ratio worsened, as 6 funds sold all their StemCells Inc shares they owned while 4 reduced their positions. 8 funds bought stakes while 11 increased their total positions. Institutions now own 6.81 million shares which is 29.01% less than the previous share count of 9.59 million in 2015Q2.

Bourgeon Capital Management Llc holds 0.13% of its total portfolio in StemCells Inc, equating to 449,620 shares. Sabby Management Llc owns 2.04 million shares representing 0.04% of their total US portfolio. Moreover, Two Sigma Securities Llc has 0.02% of their total portfolio invested in the company, equating to 33,265 shares. The Massachusetts-based New England Private Wealth Advisors Llc has a total of 0.01% of their portfolio invested in the stock. Airain Ltd, a Guernsey-based fund reported 30,578 shares owned.

StemCells, Inc. is engaged in the research, development, and commercialization of stem cell therapeutics. The company has a market cap of $51.45 million. The Firm is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies. It currently has negative earnings. The Company’s lead product development program is its CNS Program, in which it is developing applications for HuCNS-SC cells, its human neural platform technology.