KUALA LUMPUR, 28 (PRWEB) September 30, 2006
Malaysias leading bio-medical company in the stem cell industry, StemLife Berhad (StemLife), en-route to list on the MESDAQ Market of Bursa Malaysia Securities Berhad launched its prospectus today and revealed its plans to invest up to RM8.1 million for expansion of the companys branches and existing laboratories as well as the set up of a new third laboratory, as part of its utilisation of proceeds from its Initial Public Offering (IPO).
Headquartered in Kuala Lumpur, StemLife Berhad started operations in January 2002 to offer stem cell banking services and technical expertise on modern and advanced medical treatments for major diseases afflicting Malaysians. Since incorporation, the company has made tremendous headway in this young industry.
StemLifes list of achievements include not only being the first company in Malaysia to offer stem cell banking in both Umbilical Cord Blood Stem Cell (UCBSC) and Peripheral Blood Stem Cell (PBSC), normally referred to as cord blood banking and adult stem cell banking respectively, but also the first company to offer stem cell therapeutic advisory services in the Asia Pacific region. The company deals with enhancing the quality of life with stem cells, hence the companys name, StemLife.
In complementing its stem cell banking services, StemLife also collaborates closely with leading medical specialists and hospitals in the country such as Gleneagles Hospital and Heart, Stroke and Cancer (HSC) centre in Kuala Lumpur to offer leading edge stem cell therapy and consultancy services.
Through its stem cell therapy and banking divisions, the company has not only successfully preserved both UCBSC and PBSC for families and individuals but has also enabled numerous successful transplants for patients with blood related diseases such as lymphoma, diabetic foot ulcers, leukemia and thalassaemia major in Malaysia. They recently played host to the 4th Annual Asia Pacific Cord Blood Bank Consortium Forum of which the company is a founding member.
The opportunities presented by the industry cannot be ignored. This is an immense step forward for StemLife and the IPO, in our view, is a platform that presents us with the opportunity to build our capital and direct these funds towards developing and taking on equally challenging tasks to the next level, said Sharon Low, StemLifes Managing Director.
In light of heightened interest in stem cell research and a growing trend in stem cell banking globally, there exists an incredible amount of untapped business potential not just in Malaysia but around Asia. Stem cell banking in Asia like UCBSCs and PBSCs do not have the negative connotations of embryonic stem cell research which has been banned from federal funding in the United States,. With increased understanding and discoveries of new stem cell applications, the potential for future growth in the healthcare industry is tremendous.
Based on Frost & Sullivans findings, the global stem cell banking market size for 2005 is estimated to be RM7.2 billion and it is projected that the number will triple to RM22.7 billion in 2010, at a compounded annual growth rate (CAGR) of 25.8%.
In South East Asia, Malaysias market size contributed a total of RM10.8 million, followed by Thailand with RM0.9 million. In the next five years, the Malaysian stem cell banking market is expected to rise to RM46.5 million at a CAGR of 33.8% based on the Governments estimate of 500,000 babies born every year.
The Government has identified the biotechnology industry as one of the key areas for growth and development. As a measure to promote the industry, the Government had announced in the 2006 Budget that a special fund worth RM100 million would be set-up to promote the industry. We have always been aware of the dynamic environment we operate in. We are not only bound by technological breakthroughs but other external constraints. On this premise, we need to ensure that StemLife has all the necessary means to be on par with up-coming international technological and bio-medical developments while staying in line with the Governments initiatives and directions as well as within legislative guidelines, stresses Sharon Low.
She adds that there is a growing trend in Malaysias healthcare tourism sector whereby in 2005, approximately 12,698 foreigners from all over the world had spent a whopping RM793 million on healthcare services offered in Malaysia. Foreigners from the United States, Europe, India, Indonesia, China, Korea, Japan, Singapore and Maldives all contributed a substantial amount to the earnings recorded for the tourism industry last year.
We are encouraged by the Governments support of the biotechnological industry. At StemLife, we are optimistic that our plans and future strategies, together with the opportunities provided by the IPO will not only propel us to new heights but also enable the company to take stem cell banking and therapeutics to the next level, she concluded.
StemLife hopes to raise RM13.2 million from the Public Issue of 40,000,000 shares of RM0.10 each at an issue price of RM0.33 per share comprising of 10,000,000 shares to eligible directors, employees and customers of StemLife and its subsidiary companies, 8,250,000 to the Malaysian public, and the private placement of 21,750,000 shares to identified investors. The companys enlarged share capital after the IPO will be RM16.5 million.
About StemLife Berhad:
StemLife is a bio-medical company focused on the development and commercialisation of stem cell banking and therapeutics. Headquartered in Malaysia, StemLife offers not only umbilical cord blood stem cell and peripheral blood stem cell banking but also stem cell therapy and consultancy services. For more information, please visit http://www. StemLife.com
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Stem Cell Bio-Medical Company, StemLife Berhad To List on Bursa Malaysia Securities Berhad
