Cord Blood America: Company is Ready to Expand and Grow

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BioMedReports: There has been some talk about the upcoming opening of your new state-of-the-art facility. Can you tell us about that?

CEO Matthew L. Schissler: We always try to focus on three core goals and in 2010 we are opening our new state of the art laboratory. One of those three core goals is the diversification of revenue streams. Not only will we have our own organic growth engine, by processing and storing for our own company, but we recently entered into a letter of agreement to process and store for another very successful stem cell company. That’s going to be the flavor for 2010 and onward- diversification of revenue streams by using our new facility to its full capacity. The other goal is continued growth- like we saw mention of when we announced in late 2009 when we signed an agreement with a national labor association, Blue Cross and Blue Shield Association. That’s how we’ll grow some more, through the insurance companies. And finally, we’re going to be very focused on acquisitions. In fact, I’ll tell you that in 2010 we have a voracious appetite for acquisitions. With the economy the way it is, a lot of stem cell companies are struggling and we’ve been very fortunate to have our company go in the right direction by reducing debt and raising capital. We feel it’s a very good time for us to make some acquisitions and so we’re going to be very focused on that this year.

BioMedReports: So I would imagine that these acquisitions are somehow related to the goal of increasing your revenue streams in some way?

CEO Matthew L. Schissler: The overall goal in our mission statement is to not only become the world’s number one most respected stem cell company but also to be the largest as well. As we say in our mission statement, the world’s globally dominant stem cell storage company and so, those acquisitions will be in related fields, but I can’t say too much but it’s all about cryogenic preservation of stem cells and other forms of biologics.

BioMedReports: Why would I want to invest in Cord Blood America?

CEO Matthew L. Schissler: I can’t speculate or tell people to buy or sell our stock, but why I believe Cord Blood is a good company is because of the vision that we have for the cryogenic and the stem cell storage industry in particular. We want to be a globally dominant storage facility. Why? It’s a pretty simple equation. As you know there are hundreds if not thousands of stem cell research and development companies around the world. Some of those companies are going to have breakthroughs and they’re going to push a product to market. The ones that do are going to need inventory. Whether that inventory is for private banking, like we currently provide, or whether we create a public bank, or whether we store different types of stem cells, they need inventory and this model is a very simple business model.

First, let’s consider inventory. Think about OPEC or other organizations that control the oil and gas inventory, they are the ones that control the industry. Then if you have to create various products from stem cells, then you start to create a cellular pharmacy.

Yes, there are some billion dollar stem cell plays out there that could strike some great, great advancement and as they make it to market more and more people are going to want to store their stem cells. At the same time more and more individuals, healthcare companies, research companies, insurance companies are going to need some of that stem cell inventory that we want to have a hand in controlling.

We may have opportunities to store for research and development, or for a government or country. There are many different initiatives to store stem cells and we want to create the largest cryogenic storage facility because if you can put that inventory in play, more and more people will need that inventory as therapies get to market.

People don’t usually realize when you’re in the middle of a revolution that you are actually in a revolution, but we are. We’re in a medical revolution right now. Stem cells, every week, every month are showing more ability to not only treat diseases, but to actually cure them. Whether it’s just a few more diseases or a hundred, we don’t know yet, but we know that we can battle afflictions using stem cells and because of that we’ve always known that there is going to be a need for stem cells to be harvested and used for future uses. That is what has always intrigued us about the industry.

Now as a financial model, our business model has a strong annuity to it. We have the yearly storage fee which has a very low debt rate. That’s a beautiful business model. It’s a biological annuity. What caused us to get into the business was seeing a need, some time ago, that this inventory is going to need to be captured.

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One thought on “Cord Blood America: Company is Ready to Expand and Grow”

  1. Stem cells – the basic building blocks of human life – are already being successfully used as part of the treatment for childhood leukaemia and various forms of cancer but they also have the potential to treat other serious diseases in future. Indeed with your new perspective, you are doing a great job.

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