EHSI closes funding agreement with Celulas Genetica

Mar 22 2010

Emerging Healthcare Solutions, Inc. (Pinksheets:EHSI) announced today that it has closed its funding agreement with Celulas Genetica. EHSI will lock in up to 20% of earnings produced by Celulas Genetica when the agreement is funded in full.

EHSI has agreed to provide funding for operations to Celulas Genetica for up to ten years in exchange for up to 20% of profits to be generated by the company in the future. This investment is vital to enable Celulas Genetica to advance its research for the purpose of finding cures for major diseases. EHSI believes the company will deliver profits many times higher than the amount of its investment in the years ahead. The amount of funding commitment over the term of the Agreement totals $1.8 million.

Celulas Genetica is a stem cell research company working on stem cell research solutions aimed at cures to major diseases and the development of new treatments for researchers and universities in Central and South America. They believe that new stem cell therapies could produce billions of dollars of revenue for the companies that develop these cures and bring them to market. An example of how powerful this business model can be is seen in Pfizer’s (NASDAQ: PFE) (the name behind cholesterol-lowering drug Lipitor® and erectile dysfunction treatment Viagra®) recent licensing of a new stem-cell therapy for inflammatory bowel disease from Athersys (NASDAQ: ATHX).

Celulas Genetica is located next to the John Hopkins University Hospital in booming Panama City, Panama. The company is currently working towards the acquisition of the first stem cell bioreactor to be located in Central America. This should position the company to make real and rapid progress in research aimed at delivering effective cures to major diseases.

Other Biotechnology sector stocks that give context to the significance of the exploding stem cell research industry include ViaCell (NASDAQ: VIAC) and Amgen (NASDAQ: AMGN).