Stem cells services provider WideCells Group PLC (LON:WDC) has inked a stem cells insurance agreement with Biovault Technical, the umbilical cord blood sample storage specialist.
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The collaboration will essentially see Biovault, which stores umbilical cord blood samples so they can subsequently be used by the sample’s donor to combat blood-borne diseases later on in life, offer its clients CellPlan, WideCells’ insurance scheme that will cover up to €1mln or so of treatment, travel, accommodation and repatriation costs.
The agreement does not restrict CellPlan from signing additional agreements with further stem cell storage facilities.
CellPlan delivers a recurring, long term revenue stream to WideCells. Customers typically pay around £150 a year for the scheme, and CellPlan will pay Biovault a commission on successful referrals.
The launch of CellPlan to UK Biovault customers is planned for the first quarter of this year, with a roll-out to other selected European markets and the Middle-East to be phased on an ongoing basis.
WideCells will be advising Biovault on how best to market the product.
CellPlan's role will be to support and further develop Biovault's marketing efforts through its cord blood storage facility, called Biovault Family, and to provide Biovault with strategies, assets and necessary training for the sale of CellPlan non-insurance component products, and endorsement of CellPlan insurance products.
"With the signing of this definitive agreement with an influential player in the stem cell storage sector, one that is operating to the highest quality standards, the stage is now set for an exciting first quarter of 2017, which will be characterised by first sales of CellPlan,” said WideCells’ chief executive, João Andrade.
“We anticipate uptake to be solid, given that CellPlan solves a critical problem in that currently three million people around the world store their baby's stem cells, although are generally unaware that if funding responsibility falls to them, a stem cell treatment can cost up to £300,000, making it unaffordable for the clear majority.
“Importantly, the number of families storing stem cells, and therefore the market for CellPlan, is growing strongly and we believe this growth will accelerate following the launch of our product, which is designed to make stem cell treatment affordable to all,” he added.
“This news also demonstrates our ability to deliver promptly on the milestones set out on listing just five months ago,” the WideCells CEO declared.
Shares in WideCells rose 0.9% in early deals to 14.375p.