WideCells Group PLC LON:WDC, the healthcare services company focused on providing stem cell services and ground-breaking insurance for stem cell treatment, this morning told DirectorsTalk that it has signed an exclusive Heads of Terms agreement with multi-sector advisory business White Apex General Trading, to sell and promote the Group’s stem cell services in the Middle East and North Africa and Asia-Pacific territories.
WideCells Group CEO, João Andrade, said, “This agreement is an historic achievement. Not only is this the strongest strategic deal we have secured to date, but it marks our move into a significant new region: MENA and Asia-Pacific. Crucially, revenues are expected to commence by the end of this year, with GBP255,000 to be paid following signing of the binding agreement, which is anticipated by 31 October 2017, and further revenues expected to follow in the near term with at least GBP250,000 targeted before the end of the year and similar numbers targeted year on year thereafter. These figures will gain even more traction as we continue our expansion strategy and increase our global profile. This agreement highlights how rapidly we can grow and we are committed to securing similar commercial partnerships as we transform the value fundamentals of our company.”
Dr Ahmed Alawi said, “We are proud of our partnership with Widecells Group as we focus on creating a new paradigm and future medicine for our people. Our aim is to improve lives and create hope; we believe this partnership will enable us to achieve these goals.”
Overview
-- Expansion into the Territories through exclusive strategic partnership with White Apex -- Initial three-year binding agreement expected to be secured by 31 October 2017
— Payment of GBP255,000 will follow completion of the formal agreement with recurring revenues to be generated thereafter
— White Apex has option to require WideCells to develop Wideacademy in MENA, upon payment of additional GBP250,000, prior to 31 December 2017
-- Deal highlights global roll-out potential through securing worldwide commercial partners -- Services to be promoted and sold across all three WideCells Group divisions
— New office to be established in Dubai headed by Dr Ahmed Alawi, a preeminent doctor in the stem cell sector
Further Information
WideCells Group anticipates that a formal binding three-year agreement will be secured with White Apex by 31 October 2017, at which point revenue generation for the Group will begin; GBP255,000 will be paid following signing of the agreement, and recurring revenues are expected to commence thereafter. White Apex is a multi-sector advisory business with offices in the UAE, Oman, Bahrain and Kuwait. The company supports clients across four primary divisions – Corporate Advisory, Investment, Energy and Healthcare – and is experienced in the marketing and sale of commercial products.
WideCells Group will be able to leverage White Apex’s established infrastructure and intends to establish a regional office in Dubai, which will be run by a team from White Apex. This team will be led by Dr. Ahmed Alawi, who will become WideCells Group Managing Director of MENA and Asia-Pacific. Dr. Alawi is an experienced stem cell scientist who previously led a team at Genzyme, which was the world’s third-largest biotechnology company in 2010, prior to its acquisition by Sanofi in 2011. He also founded The Middle East Thrombosis Institute (www.tri-london.ac.uk). Alongside his medical achievements, Dr. Alawi has considerable cross functional experience in international Fortune 500 & FTSE companies, having previously held roles at Philips Electronics and Shell International. He also has notable regional connections, having previously worked within the Omani Government and most recently co-founded RAY International UAE in 2015, which is part of the leading RAY International Group (http://rayinternational.ae).
Other team members include Ahmad Jemain, who will become WideCells Group Chief Operating Officer of MENA and Asia-Pacific. Mr Jemain has considerable experience in corporate and enterprise in the South East Asian region, particularly within the insurance industry. Zakaria Aziz will also join the team as WideCells Group Business Development/ Marketing in South East Asia. Mr Aziz is a successful entrepreneur who co-founded RAY Oman Group, which is part of the leading RAY International Group. He has over 28 years of business experience in the oil and gas sectors in both South-East Asia and the Middle East.
Under the terms of the initial three-year agreement, White Apex will sell and promote the following WideCells Group services:
— WideCells, stem cell collection and dispatch – covers the processing, quality control, analysis (infectious disease screening) and long-term storage (up to 25 years) of cord blood and/or cord tissue
o An initial start-up fee of GBP15,000 payable to WideCells Group on completion of formal binding agreement followed by on-going monthly support fees
o Additional ongoing revenue from cord blood and tissue storage – White Apex to procure clients in the UAE and send samples to WideCells Group’s Institute of Stem Cell Technology laboratory in Manchester
— INDUS, a novel synthetic bone graft which promotes new bone formation. Two products will be available for purchase – INDUS TCP and INDUS BCP
o White Apex will be appointed as Distributor and authorised to sell INDUS directly to customers (such as clinics or dentists) or to appoint sub-dealers within the Territories
o Minimum sales targets will be agreed and established in the first 90 days when entering each country within the Territories
— CellPlan, the world’s first stem cell healthcare insurance plan with financial cover for medical treatment, travel and accommodation expenses and concierge service to manage the treatment process
o White Apex to facilitate introductions between CellPlan and insurance companies in the Territories with a view to securing commercial sales agreements
o Potential for White Apex to introduce CellPlan to stem cell storage facilities and provide ongoing support
o CellPlan will pay White Apex introductory commission fees
— Wideacademy, providing stem cell education and training services via a custom-built Statistical Analysis System (‘SaaS’) platform
o Paid for subscriptions for doctors and medical professionals to access premium content and digital tools – charged at GBP120 per year per subscriber/ doctor
— White Apex to initially sponsor subscriptions for 2,000 doctors per year for two countries in the agreed Territories a period of three years – generating revenues of GBP240,000 by signing of the formal agreement – White Apex is expected to generate further sponsorship in its designated territories
— Payment for the first 2,000 doctors is due to Wideacademy on conclusion of the formal binding agreement
— Thereafter, revenues generated from all future subscriptions secured in the Territories will be shared between Wideacademy and White Apex
o Wideacademy platform localised to the MENA region
— White Apex has the right to pay GBP250,000 before 31 December 2017 for Wideacademy to localise its bespoke SaaS platform for use in the MENA region
o Accreditation
— Wideacademy will offer courseware modules to Medical and Enterprise professionals to enhance their CPD (continuous professional development) – it is anticipated that these modules will be free-to-access, but the optional micro credential accreditation which comes from completion will be charged at c. GBP200 per module
— Wideacademy will share with White Apex 30% of revenues derived from accreditation of online courses from users in the Territories
o Licensing of the Wideacademy white-labelled platform
— Opportunity for the Wideacademy platform to be used to drive Education, Thought Leadership and Knowledge Management in other areas of medicine outside of stem cells, e.g. Dementia, Cancer and other major health challenges
— White-labelled platforms for areas outside stem cells to be available at a licence fee of approximately GBP500,000 in the first year and GBP250,000 in the following years (per annum)
— Wideacademy will share revenues derived from such licensing deals introduced by White Apex with the company within the designated Territories
