The above quote is listed during Step Seven of the quest, Witch's House, after the four forms of the Experiment are listed. This may or may not be true still- I did not test that directly-, but I DO know that if one dies and subsequently returns promptly, then the Experiment remains in the last stage encountered. This is a relevant piece of information, as it may (or may not) influence a player's strategy regarding healing and/or leaving versus dying.
I hope this is helpful,
Alex K.