Cord Blood America, Inc. (CBAI.OB) Details its Business Strategy for 2010

 @ibtimes on October 23 2009 8:03 AM

Cord Blood America, Inc., (“CBA”) parent company of CorCell, the first licensed private cord blood bank in the United States, detailed its 2010 business strategy today in an interview posted at their corporate site.

The interview explains CBA’s move to a new location, where corporate offices and an important new laboratory are being finalized. It also discusses the company’s finances and success stories for 2009.

CBA, through its wholly-owned subsidiary CorCell, collects, tests, processes and stores umbilical cord blood for use in stem cell therapy. This is an innovative approach to health insurance, offering customers the ability to protect their health (and the health of their family) by processing, storing and maintaining a stock of stem cells for future use in any of the emerging therapies available.

Stem cell therapies may offer cures to many diseases and chronic or debilitating conditions within the next century. With many therapies already validated through testing, this is an attractive new tool for customers and a potential gold mine for investors.

The transition to the Las Vegas site is going well, noted CEO and founder Matthew Schissler, who noted that the lab will be set up within the next 4-6 weeks. He went on to say that validation would begin immediately after lab prep was completed, and that he anticipated readiness for processing of cord blood by late 4Q or early 1Q 2010, citing Jan 31 as the “drop-dead-date” for the facility to be fully operational.

While he said they expected to be ready to go much sooner, he stressed his company’s commitment to quality and safety, saying, “we want to make sure the validation process goes well”, and noting the importance of lab-machine calibration testing and of mock blood processing before taking the operation live.

Schissler laid out CBA’s 2010 business strategy for investors, saying of the bold new strategy that it, “involves a shift in focus to acquiring more assets, organic growth and diversification and increase of our revenue streams”. Schissler explained the importance of CBA developing its own processing lab to investors, saying it would, “significantly reduce cost-of-goods-sold by having our own processing and storage in-house”.

CBA has been outsourcing this activity for the past 7 years and, while it has helped them get where they are today, the development of their own lab will increase overall profitability dramatically and allow the CBA to maintain stricter controls while improving its own workflows by reducing time and cost.

Schissler went on to extol the benefits of having in-house processing and storage capacity, saying that it would allow CBA to generate additional revenue streams by getting contracts from other companies to process and store cord blood. Adipose tissue stem cells, adult-peripheral stem cells, and other biological products like plasma and blood would now all become sources of additional capital because of the in-house capacity the new lab represents.

CBA has reduced debt by 9.6M since the beginning of the year, and this shoring up of finances coupled with the organic growth strategy should see CBA doing exceptionally well in 2010.

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