Definitive Agreement with BioVault for CellPlan

RNS Number : 5590T

WideCells Group PLC

09 January 2017

 

9 January 2017

WideCells Group PLC ('WideCells Group' or 'the Company')

    Definitive Agreement to Roll Out CellPlan to Customers of Leading Cord Blood Storage Facility

WideCells Group PLC, the healthcare services company focused on providing stem cell services and ground breaking insurance for stem cell treatment, is pleased to announce that, further to its announcement released on 7 November 2016, its 100% owned subsidiary CellPlan Limited ('CellPlan'), which has developed the world's first stem cell healthcare insurance plan and medical concierge service, has cemented its agreement with Biovault Technical Ltd ('Biovault') via a definitive agreement, which covers an initial five-year term.

Highlights

·     Ground-breaking agreement facilitates the first sales of CellPlan to Biovault's customer base of cord blood bankers

·     Biovault has more than 25,000 cord blood samples stored since its inception, including samples from affiliates

·     Launch of CellPlan to UK Biovault customers planned for Q1 2017 with roll out to other selected European markets and the Middle-East to be phased on an ongoing basis

·     CellPlan has delivered a proposed marketing strategy to Biovault to ensure the effective roll out of its innovative insurance product:

o  CellPlan to be introduced to clients via email notifications, social media and digital marketing at various strategic points throughout the Biovault customer journey to prompt uptake

·     CellPlan delivers a recurring, long term revenue stream to WideCells Group - offered at c.£150 per annum and CellPlan will pay Biovault a commission of the gross premiums

·     Biovault's stringent quality standards is what attracted CellPlan to approach them and Biovault is now a member of CellPlan's Excel Membership Programme, which is focused on maintaining operating excellence within the stem cell industry

·     Agreement in line with growth strategy to partner with stem cell storage facilities to rapidly leverage the compelling market opportunity for CellPlan - 3,000,000 cord blood samples are held in storage in 500 cord blood banks across the world and this is increasing by 250,000 samples per year

WideCells Group CEO, João Andrade, said, "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.  We anticipate uptake to be solid, given that CellPlan solves a critical problem in that currently 3 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.

"WideCells Group aims to be a pioneering force within the stem cell arena and CellPlan, which is a first of its kind healthcare product for families, is the product of years of careful planning.  We are therefore very excited to put our marketing plans into practice, by conducting a phased roll out to Biovault customers firstly in the UK, before reaching out to additional targets.  This news also demonstrates our ability to deliver promptly on the milestones set out on listing just 5 months ago.  We look forward to providing updates regarding our relationship with Biovault, as well as other stem cell storage facilities with which we are in discussions, over the coming weeks and months." 

Definitive Agreement between CellPlan and Biovault

Under the terms of the agreement between CellPlan and Biovault, Biovault will promote exclusively the sale and marketing of CellPlan to its existing and future customers.  CellPlan will pay Biovault a commission based on gross premiums.  The agreement does not restrict CellPlan from signing additional agreements with further stem cell storage facilities. 

Marketing Plans for CellPlan to Biovault Customers

CellPlan has delivered a market roll-out plan to Biovault, which provides an outline of the development and implementation of the marketing strategies between CellPlan and Biovault.  The activities required to be undertaken ahead of the launch to UK customers in Q1 2017 are now underway and CellPlan has delivered a detailed timeline in respect to these to ensure that responsibilities and requirements are clearly understood and allocated. 

CellPlan's role is to support and further develop Biovault's marketing efforts through its cord blood storage facility, called Biovault Family, and to provide them with strategies, assets and necessary training for the sale of CellPlan non-insurance component products, and endorsement of CellPlan insurance products.  To achieve this, CellPlan's marketing department will, in collaboration with Biovault, build on existing frameworks, always respecting regulatory laws and brand guidelines where applicable, and address sales objectives to maximise market penetration and revenues.

As the founding partner of CellPlan Excel Membership Programme, Biovault customers will be the focus of the CellPlan product launch which, due to the high level accreditation of Biovault and the comprehensive cover of CellPlan products, has the potential to increase the two brands' value.  By partnering commercial efforts, the two organisations further ensure their positioning in the stem cell market as industry leaders. 

The proposed plan includes a mix of marketing channels and tools, and focuses on engaging with a Biovault Family customer at strategic points throughout their customer journey, as well as commercial activities such as sponsorships, training, social media and trade fairs participation.

Biovault existing customers will be contacted to purchase CellPlan.  New customers that enquire through Biovault's website will be targeted through digital mailings that will range from a mix of standard and special campaigns.  For each mailing strategy CellPlan will suggest the target segmentation variables and Biovault will send key performance indicator reports that will enable CellPlan to determine the success of each campaign.  New customers who are channelled to Biovault through doctor referral will be targeted through Biovaults' team using CellPlan provided marketing tools.

Launch Schedule

Launch in the market is to happen through a trial to take place in the UK during the first quarter of 2017.  Following the launch, success will be assessed, with adjustments to the marketing roll out plan being made as appropriate.

Biovault's and CellPlan's indicative strategic approach is to then launch in a selection of other European locations and the Middle East during 2017.

For each affiliate and market, CellPlan will adjust the market roll out strategy to best accommodate each associate business model and customer journey.

New Corporate Website

A new corporate website for CellPlan has been launched, and is available to view at www.cellplan.com.  Further updates to the website to incorporate e-commerce functionality are due to be made in the coming weeks with a final version of the website due to be live by the end of Q1 2017. 

**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:  [phone]
Vicarage Capital Ltd	Broker - Jeremy Woodgate & Rupert Williams	Tel: [phone]
Shard Capital Partners LLP	Broker - Damon Heath & Erik Woolgar	Tel: [phone]
St Brides Partners Ltd	PR - Elisabeth Cowell & Charlotte Page	Tel: [phone]

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: the Institute of Stem Cell Technology has been established and is based in the University of Manchester Innovation Center to focus on stem cell research and regenerative medicine. WideCells also has international cryogenics divisions specialising on stem cell storage.

·     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 £thousand, actual treatment can cost in the £hundreds of thousands

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR).

 

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