CRYO-CELL Signs Long Term Agreement With Cancer Group Institute
July 30, 1999 09:12 AM
CLEARWATER, Fla., July 30 /PRNewswire/ -- Daniel D. Richard, Chairman and Chief Executive Officer of CRYO-CELL International, Inc., CCEL announced today the company has signed a 20 year exclusive agreement with the Cancer Group Institute, LLC.
Michael Braham, Chief Executive Officer, stated that, "The Cancer Group was formed with a group of Board Certified Oncologists nearly five years ago, and has now become the nation's premier cancer information service." Its Web site, www.cancergroup.com, is accessed by approximately 25,000 oncologists, radiologists and cancer patients daily. The Cancer Group has served many hospitals including Harvard University, Columbia, NYU, UCLA, and Johns Hopkins, among others.
According to Mr. Richard, "The agreement is multi-faceted, with the initial focus to bring expectant mothers who have a family history of cancer vital information about preserving their newborn's umbilical cord blood stem cells, as a potential medical benefit for their family."
Oncologists working with patients who are pregnant will be linked to the CRYO-CELL Web site at www.cryo-cell.com to become aware of the affordable alternative to having cord blood "thrown away" as waste material at birth.
There have been more than 1,000 umbilical cord blood stem cell transplants, with less chance for Graft vs. Host Disease (GVHD), which can cause serious complications after a bone marrow transplant.
An increasing number of insurance companies are now covering cryopreservation of newborn's stem cells when there has been a diagnosis or family history of cancer.
According to Mr. Braham, "The Cancer Group believes it's important to bring to the attention of insurance companies the need to cover the cost of this procedure. We will be working with CRYO-CELL, America's most affordable cord blood stem cell preservation banking firm. CRYO-CELL's initial price of $275 includes the collection kit, processing, testing and first year's storage fee. Thereafter, the annual storage fee is $50. This is one-fifth the cost charged by other private cell banking firms. Together we can heighten the awareness of insurance companies, oncologists and cancer patients nationwide as to the importance of cord blood preservation for the family. While there is no assurance it can cure certain diseases, a newborn's cord blood will be an exact match for a sibling in 1 out of 4 cases and could even be greater."
The agreement also covers other related activities and research utilizing cryopreservation to benefit cancer patients. Currently, prior to undergoing chemotherapy or radiation, patients are advised to store sperm and/or eggs, in the event of sterility caused by the treatment. In addition, research has been underway for years involving the cryopreserving of ovarian tissue with hopes to preserve fertility in the female patient.
While some of the many research projects have not yet become widely accepted procedures, an important reason for storing a newborn's cord blood, according to medical experts, is the ability to take advantage of evolving medical technology. An example of this progress is the possible treatment of SCIDS ("bubble baby" disease), which in the past was fatal. Some doctors have now treated the disease using the cord blood transplant coupled with cellular expansion.
Mr. Richard stated, "We believe the association with the Cancer Group will demonstrate to insurance companies the actuarial value of coverage. CRYO-CELL and the Cancer Group will simultaneously launch an intensive insurance industry awareness program."
CRYO-CELL is a publicly traded company. Its common stock trades on The Nasdaq Stock Market(R) under the symbol CCEL.
Forward-Looking Statement
Statements wherein the terms "believes," "intends," or "expects" as used are intended to reflect "forward-looking statements" of the Company. The information contained herein is subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such forward-looking statements or paragraphs. Readers should carefully review the risk factors described in other documents the Company files from time to time with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K filed by the Company.
SOURCE CRYO-CELL International, Inc.
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