San Antonio invests in startup biotech company with breakthrough stem cell technology

SAN ANTONIO - Nov. 21, 2013 - PRLog -- SAN ANTONIO (Nov. 21, 2013)– The San Antonio City Council voted today to invest

$200,000, through a grant to the San Antonio Economic Development Corporation (SAEDC), in a

promising stem cell company that has already attracted substantial private investor funding and

a world-class roster of executive management leaders, directors and advisors.  The SAEDC

investment, to be repaid as a loan or converted into stock in StemBioSys, Inc., will fund further

stem cell research,  development and manufacturing in partnership with San Antonio-based

BioBridge Global.

The agreement with the SAEDC supports a major thrust of the City’s SA 2020 initiative –

aggressive support for the burgeoning local life sciences industry and its potential to create

high-wage jobs and a powerful impact on the city’s economy.  StemBioSys was founded in 2010

to develop breakthrough technology, created at the University of Texas Health Science Center -

San Antonio (UTHSC-SA), which enables the isolation and expansion of stem cells for research,

diagnostic and therapeutic applications.

“Stem cells are the future of medicine and StemBioSys is the future of stem cells,” said

StemBioSys CEO Peter Savas.  “In turn, San Antonio is now destined to be a major contributor

to the science and industry of stem cells, an industry recently forecast to grow 24 percent

annually to $119 billion worldwide by 2018.”

Savas has recruited and led strong governance and advisory boards, executive

management teams and corporate partners that have forged robust intellectual property

positions, raised nearly $200 million in equity and debt financing and obtained regulatory

approval for and successfully commercialized novel therapeutics. He is relocating his family

from the Boston area to San Antonio and will lead the development of StemBioSys based on its

patented XC-marrow ECM™ technology.

  “The City is strongly committed to helping local entrepreneurs like Dr. Chen and Dr.

Davis and startup life science companies like StemBioSys to flourish in San Antonio,” said Mayor

Julián Castro. “An investment in local bioscience startup companies is an investment in our future and in the high wage jobs so critical to creating a 21st century economy.”

Drs. Xiao-Dong Chen, of UTHSC-SA, and Steven Davis, a prominent San Antonio

dermatologist, formed StemBioSys based on licensing Chen’s stem cell innovations from the

university.  The company, which holds two patents with three more pending, has four full-time

employees and is committed to add at least two more within a year.

         “Helping local startup companies like StemBioSys is exactly why we created the SAEDC.

Through this loan from the SAEDC, the City is able to not only help fund the continued growth

of a promising bioscience company, but have the option to secure an equity position in the

company and achieve a potential return on the City’s investment,” said City Manager Sheryl

Sculley.

         The company’s board of directors and advisory board members include Dr. Robert Langer

of the Massachusetts Institute of Technology, one of America’s most decorated scientists; Dr.

Paul Castella, who has co-founded and led several local biotech companies to successful

commercialization of new technologies; and Gary Frashier, whose team at OSI Pharmaceuticals

led the development of the cancer drug Tarceva, now generating $1.7 billion in annual sales.

“When I met Dr. Chen and began to learn about his discoveries, I believed immediately

that San Antonio had an opportunity to make a very large contribution to the future of

regenerative medicine,” Davis said, chairman of the StemBioSys board of directors.  “The

caliber of people who have now committed their time, expertise and resources to make that

happen is astounding.  We’re thrilled that the city’s leadership recognizes this great

opportunity.”

A Model City for all America: San Antonio

San Antonio is a model city for the new face of America—a diverse, progressive and globally competitive city with a solid vision for national and international economic development. In 2012, San Antonio was named an All-America City by the National Civic League.  The City of San Antonio maintains a strong financial position with a “AAA” general obligation bond rating from all three major rating agencies.  The Milken Institute has ranked San Antonio No. 1 on its Best- Performing Cities list.  As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st century industries such as bioscience and healthcare.  Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military.   The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands.  The city is also a cyber security hub; nationally recognized as a leader in the field of information security.  San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries.  The travel industry also remains a consistent growing economy for the city, as millions of people visit San Antonio on a yearly basis.  For more information, visit www.sanantonio.gov.