Cellular Dynamics International, founded by world-renowned UW-Madison stem-cell researcher James Thomson, announced a merger Monday with sister companies Stem Cell Products Inc. and iPS Cells Inc.
In addition, the newly merged CDI has received $18 million from institutions and individual donors.
CDI Chief Commercial Officer Chris Kendrick-Parker said the merger will allow the company to meet the demand of its customers, which severely outweighs the market's current supply.
According to Kendrick-Parker, while the three companies were initially founded separately, it is now logical to combine the intellectual properties of each to accelerate commercialization of research developments.
Kendrick-Parker said the primary growth of the company has been in manufacturing and product development, and the initial goals of the new CDI are to commercialize stem-cell developments for research purposes, primarily for drug discovery and development.
Janet Kelly, communications director for the Wisconsin Alumni Research Foundation, an institution that contributed to the initial round of funding, said WARF has been an avid supporter of CDI.
CDI is the kind of company Wisconsin needs to move stem-cell research from the lab to the marketplace,"" Kelly said.
According to Greg Hyer, associate director of the University Research Park, the merger will be hugely beneficial not only in regard to developments in medical science, but also because of its potential positive impact on the Midwest's economy.
""The companies started with only a handful of employees that has now, with the merger, increased to over 50, and [employees] are making almost twice Wisconsin's average individual salary,"" Hyer said.
At a news conference Monday, Gov. Jim Doyle also said the merger will benefit Wisconsin economically.
""Despite our national economic downturn, I am pleased that our business leaders are continuing to invest in innovative companies like Cellular Dynamics which will provide the high-end jobs of the future,"" Doyle said.
Kendrick-Parker said he expects employment opportunities in the company, as well as the company's revenue, to continue growing. He said CDI already has plans for its first product, and will be able to accelerate plans for other products with the merger.
