Knobias ClipReport (8-21-2007)

Submitted from Knobias ClipReport

BioLife Solutions Inc. (BLFS) has signed an agreement as the exclusive supplier of preservation media to the New England Cryogenic Center, Inc. (NECC), a global provider of cryogenically preserved human cells and tissues. The five year agreement includes volume based pricing and an exclusive commitment from NECC to purchase all of its demand for cord blood preservation media from BioLife.

CEO Michael Rice told Knobias on Monday, "We are not able to disclose the financial terms of this agreement. This is a competitive market and pricing and other terms are confidential between BioLife and our respective customers. We anticipate incremental revenue generation from this agreement starting in Q4."

BioLife Solutions develops, manufactures and markets patented hypothermic storage and cryopreservation solutions for cells, tissues, and organs. The Company's proprietary HypoThermosol(R) and CryoStor(TM) platform of solutions are marketed to academic and commercial organizations worldwide that areinvolved in cell therapy, tissue engineering, cord blood banking, drug discovery, and toxicology testing. BioLife's products are serum-free and protein-free, fully defined, and are formulated to reduce or prevent preservation-induced, delayed-onset cell damage and death.

The HypoThermosol line of preservation solutions is designed to prepare and preserve cells, tissues and organs for low temperature (2-10 degrees celsius) environments and short-term cold storage or transportation. CryoStor provides a safe, protective environment for cells and tissues during the freezing, storage, and thawing process. Through modulating the cellular biochemical response to the cryopreservation process, CryoStor provides for enhanced cell viability and functionality while eliminating the need to include serum, proteins or high levels of cytotoxic agents.

Mr. Rice explained, "Our technology is vastly different from traditional preservation media in that the formulations are based on a detailed understanding of the cellular molecular response to cold temperatures. Our scientists identified the specific pathways that cause cells to initiate pre-programmed death in response to stress (cold), and also the mechanisms by which water flows into and out of the cells during the freezing and thawing processes. From these discoveries, the optimal formulations were designed to reduce or prevent preservation induced injuries to the cells."

"The main competitive product is one a few variants of a home-brewed formulation of preservation media that includes DMSO (the anti-freeze component) along with culture media, serum, or some starch component. Invitrogen (IVGN) and Lonza are two life sciences companies that offer preservation media products."

"Some of our major customers include Centocor, Bioheart, Intercytex and several other cell therapy customers."

"BioLife also offers research for customers to determine the optimal variant of HypoThermosol or CryoStor that will provide the best post-preservation results for the specific cell or tissue type the customer is working with."

Product sales for the quarter ended June 30, 2007 increased to $201,850, compared to $156,318 for the quarter ended June 30, 2006. Net loss per share was $0.01 versus a loss per share of $0.01 for the same period in 2006.The Company has cash and cash equivalents of $707,074 and an accumulated deficit of $43 million.

In February 2007, the Company borrowed $750,000, represented by two promissory note agreements from two stockholders. The Company also borrowed $1 million from two stockholders in June 2007.

He concluded, "We are too early in our commercialization plan to provide guidance, but BioLife is very strongly positioned to capitalize on the growth potential in the cord blood and stem cell markets. A growing list of marquee customers have selected our products because we offer the best post-preservation cell and tissue yield and function. This is critically important for every clinical company, since therapeutic dosages and patient outcomes are dependent on the robustness and quality of the preservation process."



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