Stem Cell Therapeutics Announces Agreement With University Health Network and MaRS Innovation for Novel, Clinical-Stage, Canc...

Stem Cell Therapeutics Corp. (TSX VENTURE:SSS), a life sciences company
developing stem cell-related technologies, today announced the signing of an
agreement with University Health Network ("UHN"), through its commercialization
agent MaRS Innovation ("MI"), both of Toronto. The agreement provides Stem Cell
Therapeutics ("SCT") with an option to an exclusive world-wide license to an
innovative cancer stem cell program. 


Based on Dr. Aaron Schimmer's award-winning research, the technology has
provided compelling evidence that tigecycline, an FDA-approved antibiotic, is
able to selectively target leukemia cells and leukemic stem cells by shutting
down their energy supply through the inhibition of mitochondrial protein
synthesis.


Dr. Schimmer, Associate Professor in the University of Toronto's Department of
Medical Biophysics and a clinician-scientist in the Princess Margaret Cancer
Centre/Ontario Cancer Institute at University Health Network, published his
findings in 2011 in the journal Cancer Cell. Based on this discovery, Dr.
Schimmer received the 2012 Till & McCulloch Award presented each year by the
Stem Cell Network to recognize the year's most influential peer-reviewed article
by a researcher in Canada. 


"In recent years Dr. Schimmer has had a widely-recognized rise to become one of
Canada's premier clinician-scientists," commented David Allan, Executive
Chairman of SCT. "He is following in the steps and traditions of other
world-renowned Canadian stem cell researchers such as Drs. Ernest McCulloch,
James Till and John Dick. We are fortunate to be the commercial partner on what
we believe will be an exciting journey to new cancer stem cell-specific
products. Repositioning a safe and well-tolerated antibiotic as a cancer
therapeutic is an attractive business proposition for SCT, particularly when it
is backed by strong science, sufficient differentiation from the original
product, and strong intellectual property protecting the new utility, as we find
in this opportunity."


A Phase I multicenter dose-escalation tigecycline trial in patients with
relapsed or refractory Acute Myeloid Leukemia ("AML") is currently ongoing at
Princess Margret Cancer Centre (UHN), University of California, Los Angeles and
the University of Kansas. In addition to addressing safety and tolerability,
this trial will also provide important human proof-of-concept data. Biomarkers
indicative of on-target effects and inhibition of mitochondrial translation are
being assessed at each dose level. Enrolment is proceeding well in this open
label, 28-patient trial. Dosing is estimated to be completed in the first half
of 2013. SCT projects that a Phase Ib/IIa combination trial can commence in
early 2014 provided the necessary funding is secured. 


"This opportunity, emerging from Dr. Schimmer's research, targets an unmet
medical need in leukemia therapy and is a compelling example of MaRS
Innovation's critical role in bridging the technology gap for promising
early-stage assets from our members through translational funding and strategic
guidance," said Dr. Raphael Hofstein, president and CEO of MaRS Innovation. "We
are pleased to have collaborated with UHN and partner with Stem Cell
Therapeutics on this exciting project." 


SCT has been granted an option by UHN under which, and prior to April 30, 2013,
SCT may conclude the exclusive license provided SCT has secured additional
financing sufficient to support its product development operations. The
worldwide, exclusive license agreement will contain customary provisions
regarding an initial license consideration, milestones, royalties on sales and
sublicensing terms.


In parallel with its clinical program, SCT plans to devote additional resources
to amplify the preclinical R&D program to unlock the potential of tigecycline
and its derivatives. The mitochondrial-targeting mechanism-of-action (MOA) could
provide an opportunity for synergy with other cancer therapies, thereby
expanding tigecycline's use from AML into other types of malignancies.


Dr. Christopher Paige, Vice President, Research at UHN, stated "We are very
pleased to have created this partnership with the emerging Canadian
biotechnology company, Stem Cell Therapeutics Corp. This is an excellent example
of how research hospitals such as the UHN can work with MaRS Innovation and
receptor companies to translate cutting-edge Canadian research discoveries into
the prospect for important benefits to patients."


About Stem Cell Therapeutics 

Stem Cell Therapeutics Corp. (TSX VENTURE:SSS) is a Canadian commercialization
receptor company in the business of developing stem cell-based therapeutics
through partnerships with research institutions or technology transfer
organizations. The Company's corporate objectives include the analysis and
acquisition of additional stem cell-related development opportunities and
securing capital for the advancement of the licensed or acquired products. In
October 2012 SCT became a member of the 20-member Centre for Commercialization
of Regenerative Medicine ("CCRM") consortium. SCT has extensive expertise and
experience in the stem cell biotechnology sector based on the intellectual
property of Dr. Samuel Weiss in stem cell research. SCT proposes to build upon
the foundational technologies by acquiring additional early-stage clinical or
late-stage preclinical candidates. SCT's Traumatic Brain Injury product,
NTx(R)-428, is currently in a Phase II clinical trial. For more information,
visit: www.stemcellthera.com.


About University Health Network 

Toronto General and Toronto Western Hospitals, the Princess Margaret Cancer
Centre, and Toronto Rehabilitation Institute are the members of University
Health Network (UHN). The scope of research and complexity of cases at UHN has
made it a national and international source for discovery, education and patient
care. It has the largest hospital-based research program in Canada, with major
research in cardiology, transplantation, neurosciences, oncology, surgical
innovation, infectious diseases, genomic medicine and rehabilitation medicine.
University Health Network is a research hospital affiliated with the University
of Toronto. For more information -- www.uhn.ca


About MaRS Innovation 

MaRS Innovation (MI) is the commercialization agent for Ontario's exceptional
discovery pipeline from 16 leading academic institutions. As a single-entry
point to member-based activity of $1 billion in annual research and development,
MI is a gateway for investors and licensees to access technology assets.
Supported by the Government of Canada through the Networks of Centres of
Excellence by the Government of Ontario through the Ontario Centres of
Excellence, and by its 16 member institutions, MI is a transformational
partnership that turns research strengths into commercial opportunities. MI's
portfolio includes the most promising assets and advances commercialization into
global markets through industry partnerships, licensing and company creation.
For more information, visit: www.marsinnovation.com.


Caution Regarding Forward-Looking Information: 

Certain statements contained in this press release constitute forward-looking
information within the meaning of applicable Canadian provincial securities
legislation (collectively, the "forward-looking statements"). These
forward-looking statements relate to, among other things, SCT's objectives,
goals, targets, strategies, intentions, plans, beliefs, estimates and outlook,
and can, in some cases, be identified by the use of words such as "believe,"
"anticipate," "expect," "intend," "plan," "will," "may" and other similar
expressions. In addition, any statements that refer to expectations, projections
or other characterizations of future events or circumstances are forward-looking
statements. These statements reflect management's current beliefs and are based
on information currently available to management. Certain material factors or
assumptions are applied in making forward-looking statements, and actual results
may differ materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ materially from
these expectations include, among other things: uncertainties and risks related
to, the availability of capital, changes in capital markets, uncertainties
related to clinical trials and product development, rapid technological change,
uncertainties related to forecasts, competition, potential product liability,
unproven markets for technologies in development, the cost and supply of raw
materials, management of growth, effects of payers' willingness to pay for
products, risks related to regulatory matters and risks related to intellectual
property matters. Additional information about these factors and about the
material factors or assumptions underlying such forward-looking statements may
be found in the body of this news release, as well as under the heading "Risk
Factors" contained in SCT's 2011 annual information form. SCT cautions that the
foregoing list of important factors that may affect future results is not
exhaustive. 


When relying on SCT's forward-looking statements to make decisions with respect
to SCT, investors and others should carefully consider the foregoing factors and
other uncertainties and potential events. Such forward-looking statements are
based on a number of estimates and assumptions which may prove to be incorrect,
including, but not limited to, assumptions regarding the availability of
financing for research and development companies in addition to general business
and economic conditions. These risks and uncertainties should be considered
carefully and investors and others should not place undue reliance on the
forward-looking statements. Although the forward-looking statements contained in
this press release are based upon what management believes to be reasonable
assumptions, SCT cannot provide assurance that actual results will be consistent
with these forward-looking statements. SCT undertakes no obligation to update or
revise any forward-looking statement. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Stem Cell Therapeutics Corp
David Allan
Executive Chairman
[phone]
[e-mail]
www.StemCellThera.com


MaRS Innovation
Elizabeth Monier-Williams
Marketing and Communications Manager
[phone]
[e-mail]
www.marsinnovation.com