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.”