ThermoGenesis announces distribution agreement for bone marrow stem cell device

Sep 9 2008

ThermoGenesis Corp. announced today it has signed a distribution agreement with Celling Technologies for ThermoGenesis' MarrowXpress (MXP(TM)) product line used for isolating stem cells from bone marrow. The distribution rights are for the field of use in orthopedic intraoperative or point-of-care applications.

Celling Technologies is an innovator in the research, development and marketing of medical devices for use in regenerative medicine. Celling Technologies provides the scientific resources and technical expertise to provide services in the evolving field of stem cell therapy.

Celling Technologies will begin using the MXP to perform bone marrow stem cell separation for its existing point-of-care orthopedic procedures and perform clinical research utilizing this unique technology. The MXP offers a computerized control in the separation of stem cells from bone marrow aspirate which is first to market technology allowing surgeons to automate the steps with consistent cell separation accuracy and cryopreservation capabilities. In the field of regenerative medicine, a high concentration of stem cells delivered back to the patient offers an environment conducive to tissue regeneration.

The five-year agreement provides Celling with an initial 2 year period of exclusive distribution rights in the U.S. and non-exclusive distribution rights throughout the rest of the world, excluding Central and South America, Russia and certain Eastern European countries. ThermoGenesis will establish distributor relationships in those geographies.

"We are delighted to be partnering with Celling Technologies," said Dr. William Osgood, Chief Executive Officer of ThermoGenesis. "Their business model, which incorporates a high level of on-site service to clinicians, was a very important factor in our decision to establish our relationship," he added.

"We are excited about the significant market potential available to the ThermoGenesis product offering and the data we can collect through the research and development of stem cells utilizing their technology," noted Dr. Richard Suzuki, Director of Research & Development of Biomaterial Engineering for Celling Technologies. "The idea of automated controlled accuracy to provide consistent results to the patient and the market potential for cryopreservation of adult stem cells puts the technology of ThermoGenesis in a great position for leadership in an emerging industry."

ThermoGenesis received CE-Mark for the MXP, enabling the device to be marketed in the European Community and authorization from the FDA to begin marketing the MXP in the U.S., in June and July 2008, respectively.

Bone marrow derived stem cells are the dominant source of stem cells studied in regenerative medicine clinical trials for treating several large patient population diseases and injuries, including a number of orthopedic surgeries in the U.S. and international markets.

"We believe that clinicians will value the unique capability of the MXP to achieve significantly improved recovery of viable stem cells from bone marrow, as this is the greatest single success factor to a procedure," Osgood of ThermoGenesis commented.