Merger creates largest cord blood bank

Australia's largest private cord blood bank has been created by the merger of cord blood banks Biocell and Cellsense.

The merged entity will be called Australian Stem Cell Healthcare Pty Ltd.

Cord blood banks provide storage for babies' umbilical and placenta blood, to be used for transplant or to fight disease in later life.

Stem cells in cord blood could potentially assist in the treatment of diseases ranging from childhood leukemias to cerebral palsy and Alzheimer's disease.

Stem cells transform into specialised cells for different parts of the body as a human embryo develops to a foetus and then to a baby.

Private cord blood banks are developing rapidly in the US, Europe and Asia.

In 2006, in the US, more than 300,000 babies had their cord blood stored in private blood banks.

The merger will be achieved through the issue of Biocell shares to effect a 50:50 merger with Cellsense.

Biocell chief executive Mark Kirkland said the merger would make it easier for Australian parents to access cord blood banks from anywhere in Australia.

"In addition, the size of Australian Stem Cell HealthCare Pty Ltd gives us the power to lobby government and private health funds in order to make storage of cord blood stem cells an affordable and essential service for all Australians, which is in line with international endeavours," Professor Kirkland said.

Cellsense chief executive Dr Tony Coulepis said cord blood could be collected by a representative from Australian Stem Cell Healthcare or a patient's own doctor from any hospital in Australia after the baby was born and the umbilical cord clamped.

The sample is then transported to a laboratory where it is frozen and transferred to liquid nitrogen tanks for long-term storage.