Medistem
Laboratories Executes Agreement to License its Intellectual
Property to Rio Valley Medical Clinic
Second Licensee
Validates Unique Stem Cell Business Model
SCOTTSDALE,
Ariz.--(MARKET WIRE) - January 5, 2007-- Medistem Laboratories,
Inc. (OTCBB: MDSM - News ; FWB:S2U), committed to the ethical
development of next-generation medical therapies from
non-controversial adult stem cell sources, announced that it has
executed a technology licensing and royalty agreement with the Rio
Valley Medical Clinic, an international stem cell therapy clinic.
This is the second such licensing agreement reached by the company,
and validates Medistem’s business model of licensing its
intellectual property.
In exchange for the
rights granted under the License Agreement, Medistem will receive a
royalty of 90% of the monthly net revenue in excess of $20,000
resulting from the Licensee’s sale of any product derived
from or involving infusion quality adult stem cells .
In addition to royalties, all intellectual property developed
by Rio Valley through their research and clinical treatment
programs will be the sole property of Medistem.
“We are extremely
excited about the value Rio Valley Medical Clinic will add to our
business, “said Chris McGuinn, COO of Medistem.
“Rio Valley has a history of treating patients using
adult stem cells, having treated over 300 patients to date.
The fact that they have chosen to adopt our technologies in
the treatment of patients speaks volumes about our organization,
our intellectual property, and our technologies”.
The clinic, located in Tijuana, Mexico is in receipt of
all necessary regulatory approvals from the Mexican government to
conduct its operations. As a result, revenue-generating
operations are expected to begin immediately.
“The opening of
the Rio Valley Medical Clinic this month is a major milestone in
Medistem’s strategic business plan,” said Neil Riordan,
Ph.D., Chairman and CEO of Medistem. “Our business plan
calls for establishing a new licensee every 9-12 months. Our
first l
