Cryo-save Group N.V. first day of dealings

November 6, 2007 Group News

Cryo-Save Group N.V. (“Cryo-Save”, “the Group” or “the Company”), Europe’s largest adult stem cell storage bank, announces the commencement of dealings in its Ordinary Shares on AIM today under the ticker code CRYO.L and the ISIN number of NL0006091969.

The Group is a profitable emerging healthcare services group whose business focuses on the collection, processing and storage of human adult stem cells collected from the umbilical cord at birth. It currently trades in 36 countries, principally in Europe and operates four laboratories where it has to date stored in excess of 65,000 stem cell samples.

Placing statistics

Placing price per ordinary share 210p
Number of new Ordinary shares placed 12,639,000
Gross proceeds of the Placing for the Company £26.54million
Percentage of enlarged share capital in public hands on admission 74.17%
Market capitalisation at the placing price £101.17 million
Number of Ordinary shares in issue following admission 48,176,250

Kaupthing Singer & Friedlander Capital Markets Limited is acting as Nominated Adviser and Broker.

Rob Koremans, Chief Executive, commented:

The funds raised and our admission to AIM will provide us with the resources to continue to grow rapidly, both organically and by acquisitions, around the world. We are operating in a fast growing market, which is being driven by increasing public awareness of the potential for stem cell therapy. As the leading European adult stem cell storage business with about a 50% market share, we are well placed to maintain our rapid and profitable expansion programme.

 



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For further details

Cryo-Save Group
Rob Koremans, Chief Executive
Arnoud van Tulder, Chief Financial Officer
+ 31 (0)575 548998

Kaupthing
Jos Trusted/Marc Young
+ 44 (0) 20 3205 7500

College Hill
Adrian Duffield/Jon Davies
+ 44 (0) 20 7457 2020



Background information

 

Business Summary

  • The Group is at the forefront of the rapidly growing market for the storage of adult stem cells, collected from the umbilical cord at birth for potential use in future medical therapies – the Group is not involved with embryonic stem cells storage or research.
  • The Group trades in 36 countries, principally in Europe, and operates four storage laboratories.
  • To date the Group has stored in excess of 65,000 samples, with collection volumes growing at CAGR of 21% since 2002, and an annual European market share which is estimated to be 50%.
  • Adult stem cell therapy has the potential to radically change the treatment of disease – today there are more than 80 different applications particularly haematological and immunological diseases.
  • Group revenues were approx €10.9m and profit before tax was approx €2.9m in 2006.
  • Cord blood banking is well established in the USA but Europe is behind in adoption; 2.3% of live births in the USA result in stem cell storage compared to approximately 0.8% in Europe, although some countries such as Portugal and Greece have a higher incidence of storage.

 

Key strengths

  • The Group is profitable, debt free and cash generative.
  • The size and scale of the Group’s storage and processing facilities provide economies of scale.
  • The Group’s international reach supported by the number of jurisdictions in which it holds regulatory approvals.
  • Growth opportunities from new product launches expected in 2008.

 

Growth strategy

  • Develop presence and grow the business organically in existing markets
    • Exploit highly scaleable business model with the Group’s significant operational gearing
  • Acquire existing partners to consolidate businesses, grow profits and increase control
  • Drive geographic growth into new markets by
    • Developing in European markets where private storage is already contemplated
    • Developing in emerging markets (India, Russia, Turkey, South East Asia)
  • Make strategic acquisitions of non-Group businesses in the fragmented stem cell industry
  • Launch product extensions to existing customers (Cryo-Cord+) and develop new products for new markets (Cryo-Lip, Cryo-Preservation).

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