April 1, 2010 (FinancialWire) — Cord Blood America, Inc. (OTCBB: CBAI), a firm engaged in umbilical cord blood stem cell preservation, said that it has signed a license and cooperation agreement for the processing and storage of umbilical cord blood in China with AXM Pharma, Inc. (OTC: AXMP).
AXM Pharma is a pharmaceutical company focused on the production, marketing and distribution of pharmaceutical and nutraceutical products in China, where it owns a production facility.
According to Cord Blood, 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.
Cord said that 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.
Cord said it believes the deal creates the world's largest cord blood bank, with a capacity of more than two 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 said it 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 AXM Pharma.
The companies plan on the lab to begin processing stem cell samples by January 1, 2011, subject to receipt of regulatory approvals.
Nevada-based Cord Blood America is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children.
Cord blood stem cells are harvested and kept in an effort to offer a resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders.
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