DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Economic Development Grant Agreement with the San Antonio Economic Development Corporation (SAEDC) for StemBioSys, Inc. (SBS).
SUMMARY:
This Ordinance approves a Chapter 380 Economic Development Grant Agreement in the amount of $200,000 with the San Antonio Economic Development Corporation (SAEDC) to help fund the retention and continued growth of local bioscience start-up company, StemBioSys, Inc. (SBS). This Ordinance also authorizes the SAEDC to loan these grant funds to SBS in exchange for a Convertible Promissory Note which provides the SAEDC options to convert the Note into shares of stock in SBS.
BACKGROUND INFORMATION:
StemBioSys, Inc. (SBS) is a local bioscience startup company formed in November 2010 by Dr. Xiao-Dong Chen (University of Texas Health Science Center San Antonio - UTHSCSA) and Dr. Steve Davis (local dermatologist). SBS is located at 12500 Network Boulevard (District 8) with 4 full-time employees and plans to add at least 2 employees in the next 12 months. While at UTHSCSA, Dr. Chen discovered a way to isolate and expand adult stem cells for research, diagnostics and therapeutic treatments. SBS has secured 2 patents on its stem cell technology platforms with 3 other patents pending. In May 2011, SBS signed an agreement with UTHSCSA to license, develop and commercialize Dr. Chen's technologies in the regenerative medicine market which is expected to grow by 48% over the next 6 years. The SBS CEO is Peter Savas, and the SBS Board Chair is Dr. Davis.
SBS is seeking a $200,000 economic grant from the SAEDC to help fund their continued research and product development, as well as to establish a certified Good Manufacturing Practice (cGMP) facility in San Antonio to do initial manufacturing of stem cells using the SBS patented technology. SBS plans to collaborate with and lease space at local n...
Click here for full text