CytoMed Therapeutics Limited (NASDAQ: GDTC) has successfully expanded clinical-scale natural killer (NK) cells from cord blood units that have been cryopreserved for more than a decade, marking a significant advancement in cord blood-derived immunotherapy development. The Singapore-based clinical stage biopharmaceutical company announced the launch of LongevityBank, a new subsidiary focused on developing autologous cord blood-derived therapeutics.
Strategic Platform Expansion
The breakthrough in expanding NK cells from decade-old cryopreserved cord blood units has prompted CytoMed to reorganize its group structure and establish LongevityBank Pte Ltd, previously known as IPSCBank Pte Ltd. This new entity owns 100% of the licensed cord blood bank IPSC Depository Sdn Bhd, one of only three licensed cord blood banks in Malaysia.
The strategic vision divides therapeutic approaches between the two entities: LongevityBank will focus on autologous therapies using patients' own blood through personalized cellular banking services, while parent company CytoMed continues developing donor blood-derived allogeneic therapies. CytoMed currently has an approved Investigational New Drug (IND) Phase I clinical trial ongoing in Singapore and a Phase II Investigator-Initiated Trial (IIT) ongoing in India.
Therapeutic Advantages and Applications
Cord blood offers unique advantages as a therapeutic source material due to its naïve properties and rich content of hematopoietic stem cells and various immune cells, including NK cells. According to the company, cord blood-derived cells are less likely to cause graft-versus-host disease compared to adult-derived cells, making them particularly suitable for therapeutic applications.
The acquisition of the Malaysian cord blood bank provides access to rare and precious cord blood as cost-free raw materials for strategic expansion into cord blood-derived therapeutics targeting autoimmune diseases and cancers. Allogeneic therapies offer advantages in treatment speed, accessibility, and cost-effectiveness, while autologous therapies are less likely to be rejected by the patient's immune system.
Business Development and Investment
IPSC Depository, with more than 2,600 returning cord blood banking members, will restart its original cord blood banking business with enhanced service offerings including immune cell banking. The facility will be supported by resources and technologies from CytoMed to accelerate research and development of frozen cord blood as a source for expanding NK and T cells, establishing a scalable platform for these immune cells.
To demonstrate commitment to the venture, CytoMed's management and EP Capital Inc, owned by the company's Chairman, intends to invest up to $500,000 in LongevityBank's equity at a valuation of at least twice the acquisition valuation paid by CytoMed. This investment will fund new equipment purchases and laboratory refurbishment for cord blood sample processing.
Market Opportunity and Future Outlook
Chairman Peter Choo highlighted the growing market opportunity, stating, "Auto-immune cases are rapidly rising with an ageing world. Many health authorities are more tolerant of personalised autologous therapies. There is therefore good usage reason why you should bank your cells for the whole family to protect against future health crises."
The company plans to eventually spin off LongevityBank as a standalone cord blood-based biopharmaceutical company, manufacturing solutions such as cord blood-derived NK cells for autoimmune diseases. IPSC Depository's CEO Evelyn Tan noted, "We expect LongevityBank and IPSC Depository to contribute positively to the Group's revenue especially when we restart the banking business. This cord blood bank acquisition is performing much better than we had anticipated."
CytoMed emphasizes its competitive advantage through Asia's cost-competitive R&D and manufacturing infrastructure, enabling the production of both affordable autologous and allogeneic cell therapies. The company reports receiving growth and diversification proposals, though no definitive agreements have been signed.
