US Stem Cell Inc Reports Legal Appeal Results and Company Direction

Rhea-AI Summary

U.S. Stem Cell (OTC: USRM) faced a setback as the 11th District Court upheld a ruling impacting its operations in regenerative medicine. The court affirmed that the company's surgical practices do not meet regulatory exceptions, leading to a halt in most product sales. Despite this, the company plans to explore legal options and refocus on growth, particularly in its animal health division. U.S. Stem Cell claims to have performed the most clinical treatments globally over the past 20 years and certified over 700 practitioners.

Positive

• Plans to explore legal options after disappointing court ruling.
• Intention to refocus on animal health division may uncover new growth opportunities.

Negative

• 11th District Court ruling halts most product sales and procedures.
• Court affirmed regulations that may limit operational practices.

SUNRISE, FL / ACCESSWIRE / June 8, 2021 / U.S. Stem Cell, Inc. (OTC:USRM), a corporation that has historically focused on the regenerative medicine / cellular therapy industry specializing in physician training and certification and stem cell products in both human and veterinary stem cell processes, has received the results of the Appeal from the United States 11^th District Court for the Southern District of Florida.

Since May 9th, 2018, U.S. Stem Cell, as one of the parties named on a legal action by the FDA, has been challenged by an injunctive action filed by the U.S. Department of Justice, at the request of the U.S. Food and Drug Administration (FDA). The suit alleged, among other matters, that the defendants manufactured "stromal vascular fraction" (SVF) products from patient adipose (fat) tissue without first obtaining what the government alleged are necessary FDA approvals for a new drug. The Company had always maintained that stem cell treatments are medical procedures regulated by the respective State medical boards-and a patients' own stem cells are not drugs to be regulated by the federal government.

Notwithstanding:

• On June 25th, 2019, Florida-based federal court judge Ursula Ungaro ruled in favor of the government on summary judgement (a ruling without providing the Company with a trial) and ruled that U.S. Stem Cell and the other defendants must stop most product sales, processes, and procedures.
• On August 23^rd, 2019, the Company filed an appelate brief challenging Judge Ungaro's decision and respectfully requesting the Company's due process rights of a trial.
• On January 27^th, 2020, on a similar case, California-based federal court judge Jesus Bernal ruled against the government on summary judgement and ordered the case to proceed to trial.
• On January 13^th, 2021, the 11^th District Court of Appeals heard the Company's oral arguments.
• On June 1^st, Judge Ungaro retired from the bench after 29 years of distinguished service and joined the board of directors of another clinical-stage biotechnology company developing cellular therapies for chronic, aging-related and life-threatening conditions.
• On June 2^nd, 2021, the Eleventh Circuit Court ruled to affirm Judge Ungaro's judgement on the basis, generally, that neither the same day surgical procedure exception nor the 361 HCT/Ps exception applies to the Company's and the other defendants' surgical practices.

"The ongoing case has been a long, expensive and arduous fight and although the results of the appeal are disappointing, the Company will, of course, continue to abide by the court's decision" states Mike Tomas, President & CEO. Adding "Nonetheless, we will both examine future legal options on this court case while looking forward to exploring other avenues of growth for the Company."

The company will continue to monitor the ongoing trial in California, 5:18-cv-01005 where a federal judge ruled that a stem cell company involved in a similar stem cell procedure was entitled to a trial and has yet to rule on whether the stem cell procedures may be regulated by the FDA as a ‘drug.'

As a result of this court case result and taking advantage of the different capabilities housed within U.S. Stem Cell, the Company will take steps to rebrand, restructure, and relaunch the Company to refocus on its other divisions.

U.S. Stem Cell, Inc. is a corporation that has historically focused on the regenerative medicine / cellular therapy industry specializing in physician training and certification and stem cell products in both human and veterinary stem cell processes. To management's knowledge, USRM has completed more clinical treatments than any other stem cell company in the world in the past 20 years, and has certified more than 700 physicians and veterinarians in autologous stem cell therapy worldwide. The company will refocus on its animal health division while it evaluates its future opportunities for its human division and subsidiary.

Forward-Looking Statements: Except for historical matters contained herein, statements made in this press release are forward-looking statements. Without limiting the generality of the foregoing, words such as "may", "will", "to", "plan", "expect", "believe", "anticipate", "intend", "could", "would", "estimate", or "continue", or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and represent our management's beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. The Company's historical business and the risks and uncertainties of the business are described in its filings with the Securities and Exchange Commission which can be found at sec.gov.

Media Contact:

U.S. Stem Cell, Inc.
1560 Sawgrass Corporate Parkway, 4th FL
Sunrise, Fl 33323
Phone: 954.835.1500
Email: usstemcell@us-stemcell.com

SOURCE: U.S. Stem Cell, Inc.

View source version on accesswire.com:
https://www.accesswire.com/650893/US-Stem-Cell-Inc-Reports-Legal-Appeal-Results-and-Company-Direction

FAQ

What was the outcome of U.S. Stem Cell's recent legal appeal?

The 11th District Court upheld a prior ruling that restricts U.S. Stem Cell's product sales and practices.

How does U.S. Stem Cell plan to move forward after the court ruling?

The company intends to explore future legal options and rebrand to focus on its animal health division.

What does the court ruling mean for U.S. Stem Cell's operations?

The ruling limits the company's ability to sell most of its products and perform certain procedures.

How many clinical treatments has U.S. Stem Cell completed?

U.S. Stem Cell claims to have completed more clinical treatments than any other stem cell company in the past 20 years.