Stem cell therapies are tipped to be the next great advances in the treatment of a range of ailments and conditions.
WideCells Group PLC (LON:WDC) aims to be a major supporting player through a fledgling stem cell storage business that is gaining traction.
The group has finalised the details of its new insurance scheme, CellPlan, a product it expects to revolutionise its business and the sector.
Unveiled in May, WideCells worked on the terms and conditions with Best Doctors, a global leader in expert medical opinion, with the cover to be underwritten by a leading reinsurance company.
Treatment costs the hurdle
While stem cell storage costs a few thousand pounds, the cost of the treatments that use them can run into the hundreds of thousands.
For an average premium of £150 per year, CellPlan will provide insurance for up to €1mln of treatment, travel, accommodation and repatriation costs.
CellPlan is to be based in Porto, Portugal, which gives it access to the wider European stem cell market and from where licences will now be arranged for a rapid roll-out.
João Andrade, WideCell’s chief executive, said: "CellPlan has the potential to revolutionise the stem cell industry and ultimately, to make access to potentially lifesaving treatments much more affordable.
“Our focus is now on securing the necessary licencing needed to roll-out our product, a process which is much quicker in Portugal than in some other markets.
Successful listing
WideCells raised £2mln when it floated in July at 11p per share, since when the share price has appreciated steadily to 14.88p currently.
The business is aimed at the 3mln parents worldwide that refrigerate stem cells from their child’s umbilical cord.
They do so for a cost of £2,000 (for 25-30 years) knowing the material provides a potentially life-saving treatment for 82 blood-borne diseases, including leukaemia and lymphoma.
What is never discussed is the costs of treatment – which can top £300,000. In other words the outlay prohibits many of these folks from actually gleaning a benefit from their foresight, hence CellPlan.
The claims handling and ancillary requirements, such as medevac services, are being outsourced by WideCells.
Core blood banks
The company itself will be responsible for making sure the core blood banks it deals with operate to the highest international standards.
In all, there are 500 of these banks dotted around the world; however, the top ten banks store around half the samples.
The plan is to team up with major centres – and WideCells has already signed agreements with two.
Even capturing a modest tranche of the market, say in low single digits, would deliver a supremely cash generative and profitable business.
The £2mln raised will be used for marketing and to set up a stem storage facility in Manchester.
According to sources, there was plenty of interest in WideCells’ unique story, meaning the IPO was oversubscribed.
Among the shareholders who came on board at float was Miton Group, which stumped up £500,000.