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Cord Blood America Signs License Agreement to Operate Stem Cell Collection Business in China
Date : 03/31/2010 @ 9:00AM
Source : PR Newswire
Stock : Cord Blood America (BB) (CBAI)
Quote : 0.0094 0.0 (0.00%) @ 8:33AM


Cord Blood America Signs License Agreement to Operate Stem Cell Collection Business in China

Cord Blood America Signs License Agreement to Operate Stem Cell Collection Business in China

PR Newswire

LAS VEGAS, March 31

LAS VEGAS, March 31 /PRNewswire-FirstCall/ --

Cord Blood America, Inc. (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company (http://www.cordblood-america.com ) focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, announced today that it has signed a License and Cooperation Agreement for the processing and storage of umbilical cord blood in China with AXM Pharma, Inc. (Pink Sheets: AXMP).

AXM Pharma is a global pharmaceutical company focused on the production, marketing and distribution of pharmaceutical and nutraceutical products in China, where it owns a production facility which follows Chinese Good Manufacturing Practices. AXM Pharma has had a major presence in the Chinese pharmaceutical market for more than 6 years. The License Agreement terms include that AXM Pharma will provide the equipment, facilities and personnel in China necessary for business operations and will market the service in that nation.

AXM Pharma owns six buildings totaling more than 200,000 square feet of space on its 13 acre biotech campus in Shenyang, China, dedicated for this venture. CBAI believes this creates the world's largest cord blood bank, with a capacity of more than 2 million samples to start. AXM Pharma also has over 200 employees and 20 distributors to support plans for a rapid ramp up of the cord blood stem cell business.

Cord Blood America will grant to AXM a license to use its proprietary technology and know-how for the processing and storage of cord blood and CBAI will provide consulting and training. In return, CBAI will receive a 10% equity stake in AXM Pharma's stem cell subsidiary and an 8.5% royalty for all cord blood sales. As part of the license, Matthew L. Schissler, Cord Blood America co-founder and CEO, has been appointed to the Board of Directors of AXM Pharma.

"We are extremely excited about this deal. This is a major step, a key building block, toward becoming the globally dominant stem cell storage company, which is our goal. Building what we believe to be the world's largest cord blood bank, in the world's most populous country, is a very logical strategic move forward," said Mr. Schissler.

The companies plan on the lab to begin processing stem cell samples by January 1, 2011, subject to receipt of regulatory approvals.

ABOUT AXM Pharma

AXM (Pink Sheets: AXMP) is the parent company of AXM Shenyang. The company was founded in 2004 at Shenyang, China. Its mission is to become a premier China-based US GMP pharmaceutical manufacturer and distributor targeting and penetrating the markets of China. The company currently owns licenses and is capable to produce both prescription and nonprescription drugs. AXM Shenyang has the ability to produce 30,000,000 tubes for ointment, 500,000,000 tablets and 250,000,000 capsules annually. The company has six buildings totaling over 200,000 square feet that are built on more than 13 acres of campus. It has the technology of microbial fermentation which is used to produce testosaterone and testosaterone undecanoate. In 2007, AXM Shenyang was appointed to sell GM1 as exclusive distributor for Brazil. Currently AXM Shenyang has more than 200 people in marketing and distribution serving more than 20 provinces in China.

About Cord Blood America

Cord Blood America (OTC Bulletin Board: CBAI) is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders. To find out more about Cord Blood America, Inc. (OTC Bulletin Board: CBAI), visit our website at www.corcell.com. For investor information, visit www.cordblood-america.com.

CONTACT:

Paul Knopick

E & E Communications

949/707-5365

[e-mail]

Forward-Looking Statements

Some statements made in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate,'' "believe,'' "expect,'' "future,'' "intend,'' "plan,'' and similar expressions to identify forward-looking statements. These statements including those related to the growth of the industry, new stem cell treatments, and the Company's performance, are only predictions and are subject to certain risks, uncertainties and assumptions. Additional risks are identified and described in the Company's public filings with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.

SOURCE Cord Blood America, Inc.