Martin P. Rosendale, Chief Executive Officer of Cytomedix, commented, “Since joining Cytomedix as chief executive in 2008, our strategy has evolved, but the vision to transform the Company from a wound-care based technology platform into a broader regenerative medicine company has remained constant. In pursuit of this vision, we started with the successful 2010 acquisition and integration of the Angel System, a unique, best-in-class PRP platform technology that has allowed us to grow from nominal sales to $6 million per year injust over 18 months.”

“This strategic acquisition of Aldagen provides Cytomedix with a novel, patent-protected cell selection technology that fits well with our existing commercial products and strengthens our long-range growth profile”, he continued. “In combination, we now touch the three pillars of regenerative medicine with autologous stem cells, platelet-derived signal molecules and plasma scaffolds,” he added. “We view the acquisition of Aldagen as an opportunistic transaction at an attractive valuation that will allow us to build and expand our new product development efforts with Aldagen’s technology, intellectual property, people and clinical expertise. In terms of maximizing opportunity for our shareholders while managing and mitigating risk, we feel this transaction is very advantageous.”

Commenting on the acquisition, Richard Kent, M.D., Chairman of the Board of Aldagen and a Partner with Intersouth Partners, Aldagen’s largest shareholder, said, “We are delighted to join forces with Cytomedix as this alignment unites commercial products with a growing revenue stream with a deep pipeline of clinical opportunities. We believe these autologous technologies are complementary and hold potential to produce more therapeutics than either one could on its own. The commitment of additional capital into Cytomedix by certain Aldagen investors underscores our confidence in the very promising potential for the combination of these regenerative technologies to change how we treat a variety of large disease areas with continued unmet medical need.”

Transaction Terms

At the closing, Cytomedix issued 135,398 newly designated Cytomedix Series E preferred shares to Aldagen shareholders. Pro forma for the conversion of these shares to common stock, as set forth in the designations documents for the Series E preferred stock, Aldagen shareholders will own approximately 17.3% of Cytomedix common shares outstanding after the concurrent conversion and/or redemption of all existing Cytomedix preferred shares.

There are also contingent clinical milestone payments totaling up to 20,309,723 shares, which will be issued to Aldagen shareholders upon the achievement of predetermined clinical milestones associated with an ongoing Aldagen Phase 2 trial in post-acute ischemic stroke. Notably, 80% of this contingent consideration is issuable only upon a favorable clinical efficacy signal in the above-mentioned trial. The costs of the clinical trial will be funded, in part, by the $5.0 million investment made by Aldagen shareholders, $3.0 million in proceeds from completed or committed warrant exercises by existing Cytomedix shareholders, as well as a portion of Cytomedix’ cash on hand. All upfront and contingent consideration shares are subject to lockup restrictions ranging from six to 18 months.

As part of the transaction, as of the closing date three Aldagen Board members have joined the Cytomedix Board, which has been expanded to nine seats. They are Richard Kent, M.D., Chairman of the Board of Aldagen, Lyle Hohnke, Ph.D., Aldagen’s former CEO, and Joseph Del Guercio, Managing Director of CNF Investments and a current Board Observer for Aldagen. Concurrent with these additions, Craig Mendelsohn has stepped down from the Cytomedix Board.

In addition, Edward L. Field, Aldagen’s Chief Operating Officer, has been appointed as Chief Operating Officer of Cytomedix. Aldagen is now a wholly owned subsidiary of Cytomedix and will retain manufacturing and product development facilities in Durham, N.C. For additional information about this transaction, please refer to the Company’s Report on Form 8-K, filed with the Securities and Exchange Commission on or about February 8, 2012.

About Aldagen

Aldagen is a clinical-stage biopharmaceutical company developing patent-protected autologous cell-based therapeutics for tissue repair and regeneration. Aldagen’s clinical development efforts are led by a team of leading researchers and experienced clinicians. All product candidates target conditions with significant unmet medical needs. Aldagen has a deep product pipeline and data generated in a number of disease states including:

• ALD-301 for the treatment of peripheral arterial disease (“PAD”) and critical limb ischemia (“CLI”)
• ALD-201 for the treatment of ischemic heart failure
• ALD-401 for the treatment of ischemic stroke

Safety has been demonstrated in more than 70 patient treatments across all clinical trials of ALDHbr cells and positive study results in CLI and cardiac ischemia have been published and presented at major medical meetings. A growing body of scientific data validates Aldagen’s proprietary technology, including approximately 250 peer-reviewed publications and presentations. Aldagen has the only stem cell selection technology utilizing an intracellular enzyme marker to fractionate essential regenerative cells from bone marrow.

Aldagen’s proprietary bone marrow fractionation process identifies and isolates metabolically active cells expressing high levels of the enzyme aldehyde dehydrogenase, or ALDH, which is a key enzyme involved in the regulation of gene activities associated with cell proliferation and differentiation. The selected biologically instructive cells, ALDHbr cells, have the potential to promote the repair and regeneration of multiple types of cells and tissues, including the growth of new blood vessels, which is critical to the generation of healthy tissue. Preclinical research suggests that ALDHbr cells specifically migrate to sites of ischemic damage and induce the formation of new blood vessels at those sites. In human clinical trials utilizing ALDHbr cells, evidence of improved perfusion in ischemic tissue has been observed. Other stem cell therapies require expansion of cells that increase manufacturing and regulatory risk, increase processing costs and may delay treatment of the patient up to several weeks. Aldagen produces well-characterized cell populations with a high level of purity without the need for these additional steps, thereby enabling a rapid turnaround time – typically 36 hours once the bone marrow is received.

Opus National Capital Markets served as financial advisor and Cozen O’Connor served as legal counsel to Cytomedix on the acquisition. The Merchant Banking Group of Burrill & Company served as financial advisor and Hutchison Law Group served as legal counsel to Aldagen, Inc. on the transaction.

About Cytomedix, Inc.

Cytomedix develops, sells and licenses regenerative biological therapies primarily for wound care, inflammation and angiogenesis. The Company markets the AutoloGel™ System, a device for the production of autologous platelet rich plasma (“PRP”) gel for use on a variety of exuding wounds; the Angel® Whole Blood Separation System, a blood processing device and disposable products used for the separation of whole blood into red cells, platelet poor plasma (“PPP”) and PRP in surgical settings; and the activAT® Autologous Thrombin Processing Kit, which produces autologous thrombin serum from PPP. The activAT® kit is sold exclusively in Europe and Canada, where it provides a completely autologous, safe alternative to bovine-derived products. The Company is pursuing a multi-faceted strategy to penetrate the chronic wound market with its products, as well as opportunities for the application of AutoloGel™ and PRP technology into other markets such as hair transplantation and orthopedics while actively seeking complementary products for the wound care market. Additional information regarding Cytomedix is available at www.cytomedix.com.

Source: http://www.cytomedix.com/investors/press-releases/

On Wednesday, Virginia’s Center for Innovative Technology (CIT) announced that the company was one of 22 Virginia organizations to receive a total of over $3.6 million in funding for a variety of projects to support innovation and business growth in the state.  The bid solicitation generated more than 90 eligible proposals for over $21 million in requested funding spanning a range of industries identified as priority areas for the Commonwealth.  Phthisis Diagnostics received one of only four grants awarded in the Commercialization Program.  Two other Charlottesville-based companies, Hemoshear, LLC and Retivue, LLC, also received Commercialization Program awards.  According to Crystal Icenhour, PhD, President and Chief Science Officer of Phthisis Diagnostics, “This funding will support development and launch of two molecular diagnostic kits that will fulfill a critical need for better diagnosis of intestinal parasites.  We are honored to receive this commercialization support from the Commonwealth of Virginia.”  Phthisis sought the grant   funding to facilitate itsCommercialization of Cryptosporidium/Giardia Molecular Diagnostic. Companies developing new technology often find it somewhat easier to secure research funding than to develop the resources that will enable them to bring their product to market.  Commercialization grants fill an important gap, especially for small, innovative firms.

Infectious disease is the fourth leading cause of death in the United States and the leading cause of death worldwide.  Quickly identifying and targeting the disease with appropriate intervention can save lives and healthcare costs on a massive scale.  Molecular diagnostic technology is a quicker and more accurate method for identifying the pathogen responsible for a patient’s illness.

About Phthisis Diagnostics

Phthisis Diagnostics, founded in 2005, is a rapidly growing biotechnology company developing the Simply Molecular® product catalog, a range of innovative molecular diagnostic products designed for speed, accuracy, and ease of use.  The SimplyMolecular® catalog offers solutions for DNA Extraction, Molecular Diagnostics, and Laboratory Quality Control.

The company launched its first product in May 2011 with the E-Sphere™ Stool DNA Extraction Kit.  Such an extraction process from a specimen must be done before any diagnostic process can proceed.  Laboratories have expressed their need for a faster, simpler method to purify genomic DNA from human stool samples prior to their full analysis to determine the exact disease causing a patient’s symptoms.  Faster speed not only allows the lab to achieve greater efficiency in processing samples, but it also plays an important role in getting effective treatment started as quickly as possible.  Faster, effective treatment of infections can be life saving, especially when the patient is an infant or elderly patient.

The E-Sphere™ Stool DNA Extraction Kit answers the market need for speed with the added benefits of accuracy, greater cost effectiveness, reduced risk of sample contamination, and improved safety for lab technicians.  The process requires only standard clinical laboratory equipment.

For more information about Phthisis Diagnostics, please visit
www.phthisisdiagnostics.com.

About Crystal Icenhour, PhD

In 2006, Crystal Icenhour, PhD, became President and Chief Science Officer for Phthisis Diagnostics, located in Charlottesville, VA.  She is also an adjunct assistant professor at Duke University Medical Center’s Division of Infectious Diseases in their
Department of Medicine.  She has demonstrated business leadership in addition to her scientific capabilities and has expressed a goal of “bridging the translational gap between these two worlds.”

Dr. Icenhour has authored seven patents, has authored and co-authored 14 research articles, and has been a prolific speaker and presenter at scientific conferences.  She has served on review panels for the National Science Foundation and Environmental Protection Agency Small Business Innovation Research (SBIR) grants.  Dr. Icenhour currently serves on the board of the Virginia Biotechnology Association and on the editorial board for the Journal of Microbiological Methods. She is a member of the Charlottesville Business Innovation Council, Sigma Xi, Medical Mycology Society of the Americas, National Postdoctoral Association, and the American Society for Microbiology.

About Molecular Diagnostics

Innovations in molecular diagnostics have increased with the growth in understanding of the human genome and how DNA and RNA function at the molecular level. As understanding has increased, so has the demand for the development of molecular
diagnostic methods for improving sensitivity and speed. With increased demand by hospitals and clinical laboratories for molecular diagnostics to improve diagnosis, innovations have led to new products and kits that increase the reliability and speed. The ultimate goal is fast and accurate diagnosis to improve patient outcomes.

Hospitals and diagnostic laboratories are turning to molecular diagnostic methods to guarantee the highest levels of reliability and the greatest speed. Reliability is essential, because an inaccurate or missed diagnosis can be a matter of life and death. Another issue driving the need for new molecular diagnostics is the ability of microorganisms to evade and even inactivate potent antibiotics, causing health care providers to be faced with substantial infectious disease challenges. The varieties of technologies used in molecular diagnostics have transformed clinical laboratory medicine. Market analysts are predicting a 15% increase in the molecular diagnostic market over the next several years.

About the Commonwealth Research Commercialization Fund (CRCF)

The Commonwealth Research Commercialization Fund (CRCF) advances science- and technology-based research, development, and commercialization to drive economic growth in Virginia and to encourage collaboration among its institutions of higher education and partnerships between these colleges and universities and business and industry.  The General Assembly appropriated $6 million to the Fund for FY2012, with $2 million designated for the Small Business Innovation Research (SBIR) matching program.  Underlying the overall program is the strategy to enhance economic development through technology research and commercialization to successfully bring new ideas to the marketplace.

Source: http://phthisisdiagnostics.com/2011/12/phthisis-diagnostics-wins-over-500000-in-virginia-grant-awards/

The company will apply the grant to the research of spectral domain optical coherence tomography (SDOCT) systems targeted to the needs of the pediatric population.

“Children have unique eye care needs,” said Dr. Eric L. Buckland, president and CEO of Bioptigen. “It is both exciting and satisfying to work on imaging tailored to the developing eye. Our objective is to provide researchers and clinicians with the comprehensive, mobile imaging they require to properly view and manage pediatric eye disease.”

The National Eye Institute grant was awarded for the investigation of technologies related to portable SDOCT imaging that could be applied to the research, diagnosis and treatment of childhood eye diseases. The goal of this research would be to enable structural and functional imaging of premature and neonatal infants using a compact, hand-held device.

Bioptigen‘s high-performance optical imaging technologies support researchers and clinicians in the study of eye pathologies – equipping them to explore new avenues of understanding to advance disease detection and treatment. The Bioptigen Envisu™ spectral domain ophthalmic imaging platform employs low-power incoherent light to generate high-resolution, depth-resolved images of ocular tissues. Envisu rapidly acquires and displays volumetric images suitable for real-time exploration of tissue physiology and pathology.

Bioptigen systems are deployed in nine of the top 10 ophthalmic research institutions in the country.

Bioptigen‘s innovations are covered by more than 60 patent applications, including 30 awarded patents. Researchers and clinicians have published more than 100 scientific articles supported by data acquired in the use of the company’s technologies.

Source: http://www.bioptigen.com/news_Bioptigen_NIH_Grant.html

**Please note that this meeting will be capped at 75 attendees so please sign up soon!**

Date: October 18 & 19

Please go to: www.angelcapitalassociation.org/aca-events-detail/289-id.209715425.html to learn more about this event.