Fibrocell Science (FCSC) Updates on Azficel-T Wind-Down; Expects 'Significant' Cost Savings

Fibrocell Science, Inc. (Nasdaq: FCSC) announced significant cost savings are expected from the wind-down of its azficel-T operations and that the Company is focusing its efforts and resources on its gene therapy portfolio of product candidates that are developed in conjunction with Intrexon Corporation—FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa (RDEB), FCX-013 for the treatment of linear scleroderma, and genetically-modified fibroblasts for the treatment of arthritis and related conditions.

“We believe our innovative gene therapy programs have the potential to be transformative for patients suffering from debilitating genetic diseases that have few treatment options,” said David Pernock, Chairman and Chief Executive Officer of Fibrocell. “We are uniquely positioned to leverage our versatile autologous fibroblast technology with our collaborator Intrexon’s genetic engineering expertise to be a leader in developing cell-based gene therapies. Earlier this month, we initiated adult patient recruitment in our Phase I/II clinical trial for FCX-007 and expect to enroll the first subject shortly.”

With the focus now on its gene therapy portfolio, Fibrocell is actively seeking an acquiror for azficel-T and is winding down azficel-T manufacturing and related operations at its Exton, PA facility and reducing the workforce that supports such operations. Fibrocell expects that these measures will result in significant cost savings and believes its monthly cash burn for the remainder of 2016 will decrease to an average of approximately $1.6 million, as compared to a year-to-date monthly average of $2.2 million. Resources supporting the Company’s gene therapy programs are unaffected.

Mr. Pernock continued, “Our announcement today provides a strong foundation for future growth. However, this decision impacts many of our talented team members. I want to personally thank those affected for their dedication and contributions to Fibrocell.”

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