Stembanc, Inc. Announces Expansion Plans Following Patent Lawsuit Win

CLEVELAND, Nov. 5 /PRNewswire/ -- Stembanc, Inc. today announced plans to expand its state of the art, FDA registered laboratory facility following the patent holder's successful lawsuit against Stembanc's competitors.

On October 30, a Delaware jury found ViaCell Inc. (ViaCord), Cryocell International, Inc., CBR Systems, Inc. (Cord Blood Registry) and Corcell, Inc. guilty of willful infringement of the patented PharmaStem technologies needed for preservation of the unique stem cells which are present in the umbilical cord blood of newborn children.

Archibald A. (Archie) Grabinski, president and CEO of Stembanc stated: "Our competitors are now faced with the prospect of business cessation. This court decision and the damages awarded for past willful infringement represent a paradigm shift in this rapidly developing industry. This court case completely validates our conclusion that the named defendants or any other unlicensed cord blood stem cell companies operate from a legally illegitimate business foundation. Further, this case clearly establishes that physicians who knowingly work in concert with any unlicensed cord blood cryopreservation business risk being implicated in the process of infringement.

"Obviously, more expectant parents than ever will choose to store their newborn's precious stem cells with Stembanc after they understand our competitors face the prospect of business cessation.

"Perhaps as significant, physicians will more than ever clearly recommend Stembanc to parents who want to preserve their child's unique stem cells for potential future lifesaving family uses.

"Stembanc is now reaping the benefits of its ethical approach to business. From the beginning, we recognized PharmaStem's vital pioneering inventions relating to cord blood stem cells, and believed that partnering with them, rather than dodging a clear obligation, was the right thing to do.

"One of the principles that gives our country strength is our system that gives inventors a window of time to benefit from their unique contributions. The fact that the U.S. leads the world in inventiveness is a direct result of strong patent law and a legal system that makes it meaningful."

Stembanc, based in Cleveland, Ohio, is a company dedicated to the preservation of life through the widespread commercialization of newborn stem cell preservation technology and its therapeutic use.

CONTACT: Archibald A. (Archie) Grabinski, President and CEO of Stembanc,Inc., 1-87-STEMBANC (1-877-836-2262), or grabinski@stembanc.com