DGAP-News: Vita 34 AG / Key word(s): Strategic Company Decision
08.02.2019 / 08:00
The issuer is solely responsible for the content of this announcement.
Vita 34 develops cell preparations as the source material for immune cell therapies and becomes cell bank
– Change from stem cell bank to broader cell bank initiated
– Cryopreservation of immune cells from peripheral blood and umbilical cord blood from 2020
– Significant expansion of market potential based on the existing customer base
Leipzig, 8 February 2019 – Vita 34 AG (ISIN: DE000A0BL849, WKN: A0BL84), one of the largest cell banks in Europe, is expanding its business activities and will broaden its scope by setting up a new business area. In addition to the established B2C business as market leader in the DACH region for the storage of stem cells from umbilical cord blood, the expansion of the product range is currently in preparation for an offer for the cryopreservation of immune cells from peripheral blood and umbilical cord blood. As expected by the company, the approval from the responsible Paul-Ehrlich-Institut, Federal Institute for Vaccines and Biomedical Drugs, could be granted already next year.
In 2018, the introduction of the product AdipoVita was promoted, through which Vita 34 will offer the storage of endogenous adipose tissue and the stem cells contained therein after approval from mid / end of 2019. With the strategic development of the business model towards the cell bank, which has now been decided on, Vita 34 is significantly expanding not only its own product range but also the range of cell types that can be stored. This will multiply the market potential of the company in the future. The offers of Vita 34 are no longer aimed at expectant parents only, but at people of all ages.
Against the background of the expansion of the target group for the offer of Vita 34, the company sees significant growth opportunities already on the basis of the existing storage stock. “Around 230,000 umbilical cord blood preparations are stored in our cryotanks. Anyone who has opted for storage in the past with farsightedness will not only be able to benefit from the possibilities of stem cell therapy in the future, but will also open up the potential of the immune cells that are simultaneously stored in them, “Dr. Wolfgang Knirsch, CEO of Vita 34 AG highlights. “An initial market survey among existing customers shows that more than 90 percent are in favor of such an offer, of which almost a third is in extreme favor. Our approximately 230,000 storages account for 230,000 families, who are convinced of the fundamental chances of cell storage. Even according to our most conservative estimates, we see considerable potential to multiply our annual storage numbers solely on the basis of our existing customers. “
A decisive catalyst for the success of the extended product range is the current great progress in so-called individualized medicine. Although appropriate cell therapies are currently still at the beginning of their development. However, they are increasingly outgrowing the clinical test phases and are being systematically driven by the world’s leading pharmaceutical companies. The therapeutic and application options are already assessed by experts as extremely diverse and promising.
The Management Board also sees additional growth opportunities in the B2B business. “With the launch of new cell therapies by leading pharmaceutical companies, Vita 34 will no longer position itself as a B2C provider, but also as a B2B service provider,” Dr. Wolfgang Knirsch continues. “We have modularly expandable production and storage capacities, as well as more than 20 years of experience as a pioneer of cell banking in Europe. Initial discussions with providers in this area have already been conducted, which have confirmed the sustained need for such a service.”
With the expansion of the business model by the new business area, Vita 34 can build on the solid foundation of market leadership in the DACH region and achieve synergies from the established structures. Thus, both the design and the capacities of the manufacturing laboratories and the cryogenic tank farm are such that the company can start its new activities without extensive up-front investment. An expansion of capacities can be implement in the future. “The investments required to expand our business model are in a very reasonable proportion to the current size of our company and can therefore be managed well from a financial point of view”, explains Falk Neukirch, CFO of Vita 34 AG. “Expenditures for research and development will, as usual, also be around three percent of sales in 2019 and 2020.”
Further information on Vita 34 AG and its services can be found on the company’s website at www.vita34.de.
Vita 34 was founded in Leipzig in 1997 and is today one of the leading cell banks in Europe. As the first private umbilical cord blood bank in Europe and a pioneer in cell banking, the company has since then been a complete provider of cryopreservation services for the collection, processing and storage of stem cells from umbilical cord blood and umbilical cord tissue. Based on the expansion of the business model in 2019, Vita 34 intends to also offer the storage of stem cells from endogenous fat as well as immune cells and cell preparations from peripheral blood and umbilical cord blood in the future. Nursing cells are a valuable source of medical cell therapy and are kept alive at temperatures as low as minus 200 degrees Celsius for use as part of a treatment when needed. More than 230,000 customers from more than 20 countries have already provided for their family’s health with a cell depot at Vita 34.
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|Company:||Vita 34 AG|
|Deutscher Platz 5a|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|