Stem cell bank WideCells Group PLC (LON:WDC) :has set up an umbilical cord blood processing and storage facility in São Paulo, Brazil.
The launch follows a 2016 licensing agreement with Biocells Brasil, which has run the facility since 2012 and already has 400 clients.
Luiz Sardinha, the former chief operating officer of Coca-Cola, has joined the Widecell Brasil board and taken a 10% stake.
Stem cells have become increasingly important in new developments in disease treatment, organ replacement and longevity and more and more parents are storing newly born children’s umbilical cords as a source for the future.
Brazil’s stem cell storage market is predicted to be worth US$445mln by 2023 and be the largest in South America.
WideCells will receive a royalty payment for every stem cell storage booking with initial storage fees US$1,000 and US$150 per year from then on.
João Andrade, WideCells chief executive, said the market for processing and storing stem cells from cord blood in Brazil and South America was growing rapidly.
Opening in Brazil also gave it a significant opportunity to penetrate an existing market and generate recurring revenues through additional storage and healthcare services.
WideCells' development of the UK’s first stem cell storage facility, at the University of Manchester Innovation Centre (UMIC), is also on track he added.
Shares rose 2% to 13.5p. The shares were listed on the main market in July at 11p.