The Santa Monica, California-based company, Cord Blood America, has begun construction on a $500,000 laboratory to process umbilical cord blood collected at a baby’s birth and then store it at extremely cold temperatures. The lab, located in a business park, is on track for an October completion but will not go into operation until it has passed a U.S. Food and Drug Administration inspection.

There are around thirty private cord blood banks across the country, where cord blood is stored for autologous use at an cost that generally exceeds $1500 plus an annual fee of at least $100. Cord Blood America has set its prices at $2075 plus $125 annually.

“Private banking insures that you have stem cells that are a perfect match,” Cord Blood America CEO Matthew Schissler said. “You don’t have to go looking for the match.”

Cord Blood America, Inc, the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells to families nationwide and internationally, announced today the participation of its subsidiary CorCell Companies, Inc., in the MyHealth Mart Value-Added Discount Program for members of Blue Cross of Northeastern Pennsylvania to access cord blood banking services at a preferred price. The MyHealth Mart Value-Added Discount Program is administered by AllOne Health Management Solutions, Inc. for Blue Cross of Northeastern Pennsylvania.

“Participation in this program allows CorCell to bring the knowledge and awareness of the significant value of storing umbilical cord blood to Blue Cross of Northeastern Pennsylvania members,” said Matt Schissler, CorCell’s CEO. “We are pleased that we can offer this important life-saving service to their members at a discounted price.”

Cord blood stem cells may be used today to treat more than 70 diseases including leukemia, severe anemia, metabolic blood disorders and immune deficiencies with many additional uses currently under investigation in clinical trials and in research and development. Previously the umbilical cord, which contains a rich store of stem cells, had been thrown away at birth.

Cord Blood America announced today it has hired Immunologist Dr. Geoffrey John O’Neill as its new Laboratory Director and Brian Pockett as Vice President of Laboratory Operations.

Cord Blood America recently announced it is opening a state-of-the-art laboratory for the storage of multiple stem cell products, including umbilical cord blood stem cells, in Las Vegas, Nevada.

“We are pleased that two such distinguished, experienced, successful professionals will be overseeing our new lab,” said Company founder and CEO Matthew Schissler. “The lab will be used to process and store umbilical cord blood stem cells, to store other forms of stem cells such as peripheral blood stem cell and adipose tissues, and for research and product development.”

Dr. O’Neill was Laboratory and Scientific/Medical Director for Cryo-Cell International Inc. in Florida and was Laboratory Director for the Bio-Matrix Scientific Group Inc., a San Diego biotech research and development firm in the stem cell sector.

Brian Pockett served as a consultant on global distribution, product development, commercialization, investment and intellectual properties for some of the largest companies in the U.S. He also served as Managing Director and Chief Operating Officer for Bio-Matrix Scientific Group Inc.

Cord Blood America, an umbilical cord blood stem cell preservation company, has received a commitment for up to $2.3 million to either buy or build its own laboratory for the purpose of storing of multiple stem cell products including umbilical cord blood stem cells. About $300,000 of the funding has already been received by the Cord Blood America to begin the laboratory purchase or construction, with the additional $2 million to be paid out in future installments.

Matthew Schissler, founder and CEO of Cord Blood America, said: “The funding is from a private, institutional investor and allows us to focus even further on our due diligence efforts that I announced earlier. Certain properties of the funding will be recorded as both an asset and a liability on our books.”