CyGenics acquires 51 per cent of BioCell

Cell therapy company CyGenics (ASX:CYN) has taken a 51 per cent controlling equity interest in cord blood stem cell banking business BioCell.

CyGenics already has a Singapore-based subsidiary focused on tissue banking services and in particular cord blood banking and opened another facility in Hong Kong in March.

"This fills a gap in our cord blood banking business," said CyGenics COO Ian Brown.

Melbourne-based BioCell commenced operations in August 2004 and now has operations nationally. After Cryosite (ASX:CTE), BioCell is the second largest cord blood banking business in Australia.

Following a cash payment of $530,000, CyGenics will have a majority board representation on BioCell.

"We would have two seats on the board and they have one," said Brown. "It means that we can essentially run it as our own business, but draw on the local expertise of the founders."

All funds will be retained by BioCell and used as working capital.

"BioCell's not at break-even yet," said Brown, "but we can see that it will happen within 18 months."

The Australian cord blood banking market is estimated to generate revenue of $14 million by 2006 and $20 million by 2012.