ThermoGenesis Announces Global Res-Q Distribution Agreement With GE Healthcare

RANCHO CORDOVA, Calif., May 6 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. (Nasdaq: KOOL), a leading supplier of innovative products for processing and storing adult stem cells, announced today it has signed a non-exclusive distribution agreement with GE Healthcare for its Res-Q60 BMC (Res-Q), a device used to prepare cell concentrates, including stem cells, from bone marrow.

The agreement, which excludes orthopedic indications in the U.S., is the fifth new distribution agreementand the second new agreement with GE Healthcarethe Company has completed in calendar 2010. In January, ThermoGenesis signed an enhanced distribution agreement with GE Healthcare for its AXP® AutoXpress (AXP) System, used to process stem cells from cord blood, in a number of major regions throughout the world.

“This new agreement with GE Healthcare represents a major milestone in our bone marrow strategy. We believe they can leverage their strong presence in markets such as cardiology to expand the use of our Res-Q System beyond orthopedics and into indications where the use of stem cells as therapy is growing,” said J. Melville Engle, Chief Executive Officer of ThermoGenesis. “We are also pleased to be expanding our relationship with such an industry leader as GE Healthcare,” he continued.

Introduced in mid-2009, the Res-Q60 System enables the efficient preparation of cell concentrates from bone marrow aspirate at the intra-operative point of care or in a laboratory setting in a rapid and easy to use procedure. Under the practice of medicine, its initial applications have been in the U.S. orthopedic market through a distribution agreement with Celling Technologies, a subsidiary of SpineSmith, LLC. In February, the Company filed a form 510(k) with the FDA seeking market clearance for the use of its Res-Q System in the preparation of platelet rich plasma, or PRP, from peripheral blood, which is used to enhance wound healing.

“Our sales team is very excited to add the Res-Q technology to GE Healthcare’s suite of Cell Therapy products,” said Konstantin Fiedler, General Manager Cell Technologies at GE Healthcare. “It further strengthens and complements GE Healthcare’s comprehensive portfolio of offerings in therapy-enabling cell technologies.”

“This latest relationship with GE Healthcare is further proof that we are realizing our vision to achieve leadership in the adult stem cell processing and storage markets and provides additional validation for our innovative offerings. It also creates strong momentum for the Company as we conclude the fiscal year and lay the groundwork for a promising fiscal 2011,” Engle added.

Having recently signed multiple new distribution agreements covering new products, indications and geographic territories, the Company has significantly expanded and improved its product distribution network throughout the world. A summary of ThermoGenesis’ distribution network follows:

About ThermoGenesis Corp.

ThermoGenesis Corp. (www.thermogenesis.com) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the manufacture, preservation and delivery of cell and tissue therapy products. These products include:

• The BioArchive® System, an automated cryogenic device, is used by cord blood stem cell banks in more than 30 countries for cryopreserving and archiving cord blood stem cell units for transplant.
• AXP® AutoXpress Platform (AXP), a proprietary family of automated devices that includes the AXP and the MXP MarrowXpress and companion sterile blood processing disposables for harvesting stem cells in closed systems. The AXP device is used for the processing of cord blood. The MXP is used for the preparation of cell concentrates, including stem cells, from bone marrow aspirates in the laboratory setting.
• The Res-Q 60 BMC (Res-Q), a point-of-care system that is designed for the preparation of cell concentrates, including stem cells, from bone marrow aspirates.
• The CryoSeal® FS System, an automated device and companion sterile blood processing disposable, is used to prepare fibrin sealants from plasma in about an hour. The CryoSeal FS System is approved in the U.S. for liver resection surgeries. The CryoSeal FS System has received the CE-Mark which allows sales of the product throughout the European community.

This press release contains forward-looking statements, and such statements involve risks and uncertainties that could cause actual outcomes to differ materially from those contemplated by the forward-looking statements. Several factors, including timing of FDA approvals, changes in customer forecasts, our failure to meet customers’ purchase order and quality requirements, supply shortages, production delays, changes in the markets for customers’ products, introduction timing and acceptance of our new products scheduled for fiscal year 2010, and introduction of competitive products and other factors beyond our control, could result in a materially different revenue or profitability outcome and/or in our failure to achieve the revenue levels we expect for fiscal 2010. A more complete description of these and other risks that could cause actual events to differ from the outcomes predicted by our forward-looking statements is set forth under the caption “Risk Factors” in our annual report on Form 10-K and other reports we file with the Securities and Exchange Commission from time to time, and you should consider each of those factors when evaluating the forward-looking statements.

SOURCE ThermoGenesis Corp.