WideCells Group PLC (LON:WDC), the healthcare services company focused on providing stem cell services and ground breaking insurance for stem cell treatment, has today announced that its 100% owned subsidiary CellPlan Limited (‘CellPlan’) has signed a Definitive Agreement (‘the Agreement’) which will see its first-of-its-kind stem cell healthcare insurance plan and medical concierge service offered to both new and existing clients of Hemocord Clinica Medica Ltd (‘Hemocord’). Hemocord, which has been operating since 2004, is a world-class leader in cord blood storage, with facilities in Brazil. This is CellPlan’s second agreement with a cord blood storage facility and its first agreement in this geography, which represents a rapidly growing market.
CEO João Andrade and CFO David Bridgland join DirectorsTalk to discuss a second Definitive Agreement secured for Cellplan with Hemocord Clinica Medica Ltd. João provides more information on Hemocord and what this agreement means for the Group, the significance of this region for the Group and reminds us of the investor event due to take place next week. David now becoming full time CFO explains how well things are going and whether we can expect more agreements of this kind.
Highlights
· Around 5,000 stem cells are currently stored by Hemocord, allowing for a dramatic increase in CellPlan’s customer base
· Provides CellPlan with exposure to the largest cord blood storage market in South America, a market projected to be worth US$445 million by 2023
· The reference price of the CellPlan product is £170 per annum and under its reseller model CellPlan this will generate an average of £50 balance from each sale, after disbursements, commissions and reinsurance costs. Gross premium will be adjusted to the Brazilian market ahead of product launch.
· Agreement to lead to creation of a second Brazilian revenue stream and will strengthen the Group’s current presence in the country, which includes a stem cell storage facility
· CellPlan has delivered a proposed marketing strategy to Hemocord to ensure the effective roll out of its innovative insurance product:
o CellPlan to be introduced to clients via email notifications, social media and digital marketing at various strategic points throughout the Hemocord customer journey to prompt uptake
· Hemocord is now a member of CellPlan’s Excel Programme due to the excellent standards and high quality of its facility
· Discussions currently progressing with multiple cord blood storage facilities globally with a further two well advanced
o 3,000,000 cord blood samples are held in storage in 500 cord blood storage facilities across the world; a figure that is increasing by 250,000 samples per year
WideCells Group Plc CEO, João Andrade, said, “The market for services relating to stem cells in Brazil is strong and growing rapidly, and as such we are delighted that CellPlan is on track to deliver revenues from this exciting jurisdiction. This agreement with one of Brazil’s most established cord blood storage facilities represents CellPlan’s second commercial contract and sees our first-of-its-kind healthcare plan enter a new geography, in line with our global ambitions. As a Group, we have now forged two potential revenue streams in Brazil having also secured a stem cell storage facility in-country.
“We anticipate a strong uptake in CellPlan from Hemocord’s customers. CellPlan solves a critical problem in that 3 million people around the world store their baby’s stem cells despite being generally unaware of the costs they may face should they ever need stem cell treatment; our unique and finely tuned healthcare product provides families with a solution. We are proud of our achievements and know that many people will benefit from the agreement secured today. With a multitude of discussions ongoing, the future looks bright for CellPlan, and I look forward to providing everyone with further news as we deliver on our ambitious objectives.”
Hemocord CEO, Dr Karolyn Ogliari, said, “Cellplan is especially important and of great value for clients in Brazil and South America, since the current treatments available are mainly concentrated in North America and Europe. We are pleased to be the first company to offer this great benefit to our customers.”
Marketing Plans for CellPlan to Hemocord Customers
CellPlan and Hemocord have worked together to design a multi-faceted marketing strategy focused on driving sales of CellPlan to both parents that have stored their baby’s stem cells at Hemocord’s facility, as well as expectant parents. The proposed plan includes a mix of marketing channels and tools, and focuses on engaging with a Hemocord customer at strategic points throughout their customer journey, as well as commercial activities such as sponsorships, training, social media and trade fairs participation.
Existing Hemocord customers will be contacted to purchase CellPlan. New customers that enquire through Hemocord’s website will be targeted through digital mailings that will range from a mix of standard and special campaigns. For each mailing strategy Hemocord will suggest the target segmentation variables and Hemocord will send key performance indicator reports that will enable CellPlan to determine the success of each campaign. The marketing strategy will be implemented by Hemocord’s customer relationship management and CellPlan will be promoted on both companies’ websites and via Call Centre functions.
CellPlan’s role is to support and further develop Hemocord’s marketing efforts through its cord blood storage facility and to provide them with strategies, assets and necessary training for the sale of CellPlan non-insurance component products, and endorsement of CellPlan insurance products. To achieve this, CellPlan’s marketing department will, in collaboration with Hemocord, build on existing frameworks, always respecting regulatory laws and brand guidelines where applicable, and address sales objectives to maximise market penetration and revenues.
The teams are now implementing the final details ahead of product launch which is expected to happen during the course of the last quarter this year.