WideCells Group PLC, the healthcare services company focused on providing stem cell services and ground breaking insurance for stem cell treatment, is delighted to announce that its 100% owned subsidiary, CellPlan Limited (‘CellPlan’), has launched a first-of-its-kind stem cell healthcare insurance in the UK with CellPlan now available for purchase by customers of Biovault Technical Ltd (‘Biovault’), the UK’s largest private human tissue storage facility. Additionally, the Company’s e-commerce platform, which allows the Group to sell CellPlan directly to families, will be made live during the next few weeks. This marks an inflection point for the Group, with the generation of maiden revenues from CellPlan expected imminently.
CellPlan enables individuals, who have gone through the expense of storing stem cells from umbilical cords, to cover the high-cost of stem cell treatment through an affordable insurance product, which provides cover for up to €1 million of medical, travel and accommodation expenses. Customers will also have access to an expert second medical opinion and a global concierge service if treatment is carried out abroad.
Biovault is a member of the elite CellPlan Excel Programme, meaning that it adheres to the Group’s stringent quality standards, and currently stores more than 25,000 cord blood samples. The insurance product will be sold to all new and existing Biovault customers. For further details on the agreement entered into between Biovault and CellPlan, please see the announcement dated 9 January 2017. Notably, effective from today, every new Biovault customer will receive CellPlan for a 12 month period, the cost of which will be covered by Biovault as part of a Biovault package to new storage customers. This campaign alone has the potential to create a solid and recurring stream of revenue for the Group during 2017 and beyond due to the historically very high rate of clients who renew after the initial 12-month term.
Biovault is also initiating a defined marketing strategy to educate the market on the key differentiators of its storage offering and the CellPlan insurance product, which the Board believes will ensure strong uptake of CellPlan amongst existing Biovault clients. Existing Biovault customers and families that have stored stem cells in facilities currently not members of the CellPlan Excel Member Programme but which meet standards adhered to by the programme (the ‘Extended Provider Network’) will be able to purchase CellPlan via the Company’s e-commerce platform in the next few weeks.
CellPlan’s agreement with Biovault can be used as a benchmark for future agreements with other cord blood storage facilities.
The average price of the CellPlan product is £170 per annum and under its reseller model CellPlan will generate an average of £50 balance from each sale, after disbursements, commissions and reinsurance costs. CellPlan will take a greater share of the margin for sales generated from the Extended Provider Network given that no commission payment will be required.
To mark and celebrate today’s launch, CellPlan will be hosting an event at its offices on Friday 14 July 2017 for local press, partners and current and potential clients. This will also be promoted digitally.
WideCells Group CEO, João Andrade, said, “With first sales expected imminently, this is a milestone for CellPlan and the Group as a whole. We are leveraging Biovault’s register of over 25,000 samples to generate sales of our innovatively complete stem cell insurance product and are delighted that all new customers of the UK’s leading cord blood storage facility will become customers of CellPlan. CellPlan is genuinely making stem cell treatment accessible and affordable to families that have gone through the expense of storing stem cells from umbilical cord blood and who most likely do not have the financial safety net to cover the costs to use their stem cells, therefore we believe that uptake will be equally strong amongst Biovault’s existing client base and our Extended Provider Network.
“Crucially, we expect our agreement with Biovault will provide a framework for future agreements that are in our pipeline. In line with this, we are pleased to report that we are already experiencing demand from other members of our Excel Membership Programme for our insurance product and accordingly believe we are poised to generate additional recurring revenues from CellPlan in the near future. We look forward to reporting on these sales initiatives in the near future. This is the start of our future, which we believe will see us become the leading stem cell support services company globally.”