EATONTOWN, NJ / ACCESSWIRE / September 25, 2017 / American CryoStem Corporation (PINK SHEETS: CRYO) today announced a major transaction in mainland China with Health Innovative Technology of Hong Kong (HIT). After more than two years as CRYO’s licensee in Hong Kong, HIT has licensed the patent rights to distribute the Company’s ATGRAFT and CELLECT platform in mainland China.
To facilitate the expansion, CRYO has extended the licensing and distribution agreement with HIT to establish two additional entities; Health Innovative Technology Shenzhen (HITSZ) and Baoxin Asia Pacific Biotechnology Co, LTD (Baoxin), which will develop, own and operate multiple laboratory/treatment/training facilities in China.
CRYO has received an upfront fee of $300,000 USD and a 5-year minimum annual guarantee of $500,000 USD per year. Additionally, as part of the transaction CRYO will obtain a minority equity stake in Baoxin, (China) and up to a 20% equity ownership interest in the Regenerative Medicine center in Hong Kong (HK).
According to South China Morning Post industry analysts estimate that China’s cosmetic surgery industry will double by 2019 making it the third largest market in the world behind the U.S. and Brazil. Additionally, CRYO’s ATGRAFT fat tissue platform is a natural alternative to one of the most popular procedures in China, hyaluronic acid (HA) dermal filler injection which enhances facial contours, reduce wrinkles, hydrate and firm the skin.
John Arnone, CEO stated, “For the past few years we have focused the expansion of our products and services into international markets. Many of these markets, including Hong Kong, have recently approved stem cell-based therapies. The HK laboratory/treatment center will take full advantage of CRYO’s Regenerative Medicine Platform, (ATGRAFT, ATCELL, and CELLECT) and synergistic products including the Company’s ACSelerate Max cell culture mediums. He continued, “Our long-term relationship with Health Innovative Technology of Hong Kong has provided us with a reliable partner to expand the business within China.”
Anthony Dudzinski, COO of CRYO added: “China is one of the world’s largest markets for our technology and Regenerative Medicine platform and we believe this transaction will have a long-term positive impact on our revenues and significantly enhance the value of the Company for our shareholders.”
Matthew Fan, CEO of Health Innovative Technology commented, “After years of working with American CryoStem and their platform at our initial laboratory facilities in Hong Kong and Shenzhen, we are ready to expand our China operations. CRYO’s tissue collection, processing and storage platform for adipose tissue has been very well received in our markets and we believe we can be the dominant player in this field. Our short-term goals are to set up two more GMP grade adipose tissue processing and storage facilitates in Beijing and Shanghai to cover the need of the whole China region, and a proper education facility in China to promote the use of ATGRAFT as a better more natural filler, over the artificial fillers.”
About American CryoStem Corporation:
American CryoStem Corporation (PINK SHEETS: CRYO) was founded in 2008, and has evolved to become a biotechnology pioneer, standardizing adipose tissue-derived technologies (Adult Stem Cells) for the fields of Regenerative and Personalized Medicine. The Company operates a state-of-art, FDA-registered, clinical laboratory in New Jersey and licensed laboratories in Hong Kong, Schenzen, China and Tokyo, Japan, operating on our proprietary platform, dedicated to the collection, processing, bio-banking, culturing and differentiation of adipose tissue (fat) and adipose-derived stem cells (ADSCs) for current or future use in regenerative medicine. CRYO maintains a strategic portfolio of intellectual property (IP) that surrounds our proprietary technology that supports a growing pipeline of stem cell applications and biologic products. We are leveraging our proprietary platform and a developed product portfolio to create a domestic and global footprint of licensed laboratory affiliates, physician’s networks and research organizations who purchase tissue collection, processing and storage consumables from our Company. Our laboratory stem cell bank/line products are characterized adult human Mesenchymal Stem Cell (MSC’s) derived from adipose tissue that work in conjunction with our 13 patented (non-animal) medium lines. The Company’s R&D efforts are focused on university and private collaborations to discover, develop and commercialize ADSC therapies by utilizing our standardized collection-processing-storage methodology and laboratory products combined with synergistic technologies to create jointly developed regenerative medicine applications and intellectual property.
About Health Innovative Technology:
Health Innovative Technology Corporation Limited (HIT) is a healthcare platform with diverse investment interests spanning across pharmaceutical, beauty, healthcare, and life science services. HIT is dedicated to the successful, efficient, and cost-effective execution of projects in innovative and scientifically proven biomedical technologies, including, but not limited to, stem cell storage and genome diagnostic services. HIT strives to promote the development of life science and medical technology in Greater China Region by supporting different research projects around the globe. By continually looking to import cutting-edge life science technologies, we aim at satisfying the unmet need in the highly volatile health management industry from an ethical approach.
SOURCE: American CryoStem Corporation