WideCells Group PLC New Revenue Stream: Stem Cell Research, Manchester (4840Q)
November 30 2016 - 2:01AM
UK Regulatory
TIDMWDC
RNS Number : 4840Q
WideCells Group PLC
30 November 2016
30 November 2016
WideCells Group PLC ('WideCells Group' or 'the Company')
LOI with medical device company to undertake stem cell research
at WideCells' Manchester Institute of Stem Cell Technology
WideCells Group PLC, the healthcare services company focused on
providing stem cell banking services and ground breaking insurance
for stem cell treatment, is pleased to announce that it has taken
steps to secure a new revenue stream, in addition to the cash flow
opportunities outlined in the Company's prospectus published in
July this year, having signed a Letter of Intent ('LOI') with
Qigenix and its CEO, Dr. Todd Ovokaitys. Qigenix is a
California-based clinical stage medical device company which has
co-developed a new laser technology designed to increase the homing
and integration of stem cells.
The two parties aim to sign a definitive, binding agreement (the
'Definitive Agreement') before 1 March 2017. Qigenix has agreed to
pay a fee of GBP100,000 in aggregate to WideCells Group to
undertake research work at its Institute of Stem Cell Technology
laboratory ('ISCT') at the University of Manchester Innovation
Centre ('UMIC'), designed to test Qigenix's laser technology on
cord blood cells to enhance the clinical applications of these
cells (the 'Research Project'). The first payment of GBP25,000,
which is binding under the LOI, will be paid to WideCells by the
end of December 2016. The remaining GBP75,000 will be paid in two
further instalments, with the final payment due when the research
project is completed, which is targeted for Q2 2018.
The ISCT is operated by the Company's stem cell laboratory
division, WideCells, which has been established primarily to
retrieve, process and store stem cells from a wide range of human
tissues in Europe within its Cryogenics department. In support of
this, the ISCT has recently made an application to the Human Tissue
Authority ('HTA') for a Human Application Licence (application
number 22665). Additional licence applications for dental pulp and
adipose stem cells are planned to be made in 2017. However, with
this LOI now signed, the Company is now applying to the HTA
Research Licence to permit it to carry out the Research Project.
The Research Project is planned to begin in H1 2017, subject to the
HTA Research Licence having been granted.
Work to establish the ISCT is progressing according to schedule
and budget. It is due to become operational in H1 2017. The
Cryogenics Department, which will handle the freezing and long term
storage of stem cells, is currently under development. The
Cryogenics Department will have state of the art controlled rate
freezing technology along with liquid nitrogen tanks for the long
term storage of stem cells. The storage tanks are constantly
monitored and have automatic alarms, which contact WideCells ISCT
staff directly in the event of any activities which could affect
the quality and safety of the stored stem cells. The Cryogenics
Department has constant atmospheric oxygen level monitoring linked
to an automatic ventilation system which activates if the
atmospheric oxygen levels drop due to the presence of liquid
nitrogen. This system is essential for the health and safety of
WideCells ISCT staff. The Cryogenics Department also has a bespoke
security system, including CCTV monitors, to ensure the safety and
security of stored stem cells.
WideCells Group CEO, João Andrade, said, "The signing of the LOI
with Qigenix represents a significant milestone in the fulfilment
of WideCells' strategy. We established the Institute of Stem Cell
Technology at UMIC in order to create a stem cell processing and
storage facility in the UK, and whilst we continue to make
excellent progress in this regard we are delighted to have
identified a second potential revenue stream from this facility. We
look forward to announcing completion of the definitive agreement
and receipt of our first revenues. Qigenix has co-developed an
extremely innovative laser technology, which has the potential to
enhance the clinical applications of stem cells, and we are
delighted to be able to offer our state-of-art-technology and
industry knowledge to further the development of this. WideCells is
committed to broadening access to and combating the financial
barriers associated with stem cell treatment and we are
consequently delighted to be able to support research and
innovation within the sector."
**ENDS**
For further information, please visit the Company's website
www.widecellsgroup.com, follow us on Twitter @WideCells_Group or
contact:
WideCells Group CEO - João Andrade Tel: +351 919
033 171
------------------- ------------------------- --------------
Vicarage Capital Broker - Jeremy Woodgate Tel: +44 (0)
Ltd & Rupert Williams 20 3651 2912
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Shard Capital Broker - Damon Heath Tel: +44 (0)
Partners LLP & Erik Woolgar 207 186 9950
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St Brides Partners PR - Elisabeth Cowell Tel: +44 (0)
Ltd & Charlotte Page 20 7236 1177
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Notes to Editors
WideCells Group PLC is building an integrated stem cell services
company, focused on making stem cell treatments accessible and
affordable. The Directors believe that the use of cord blood stem
cells for transplant will drive one of the next important phases in
medicine and is therefore developing market leading products in
complementary, strategic areas which are designed to take advantage
of substantial market opportunities in one of the fastest growing
segments in the healthcare industry. With this in mind, it has
created three divisions:
-- CellPlan: the world's first stem cell healthcare insurance
plan with financial cover for medical treatment, travel and
accommodation expenses and concierge service to manage the
treatment process
-- WideCells: a portfolio of best in class stem cell processing
storage facilities - in the process of establishing and licensing
collection, storage and processing facilities at the WideCells
Institute of Stem Cell Technology at the University of Manchester
Innovation Centre, UK, which is well positioned to capture an
increasing share of the cord blood banking market in Europe, the
Middle-East and Africa. Through WideCells Brasil, WideCells also
operates a stem cell laboratory in São Paulo, Brazil to access the
South American market.
-- WideAcademy: developing an education and training division to
promote awareness of the benefits of stem cell storage across the
global general practice community.
The Group has built an experienced senior management team that
has been integral to the development of its growth and business to
date.
Stem Cell Fast Facts:
-- Cord blood (which is taken from the umbilical cord) provides
the most effective source of stem cells for families due to it
being simple, safe and painless to collect relative to other
sources of stem cells such as bone marrow - WideCells will focus on
promoting the collection and storage of this.
-- Since 2005, there has been a 300% increase in the number of
illnesses that can be treated using stem cells
-- 82 illnesses can currently be treated using stem cell procedures
-- Despite initial storage often costing no more than a few
GBPthousand, actual treatment can cost in the GBPhundreds of
thousands
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014
(MAR).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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