DGAP-News: Vita 34 refocuses R&D activities and implements cost reduction program in Scandinavia

Vita 34 refocuses R&D activities and implements cost reduction program in Scandinavia

- Focusing of R&D activities on the identification, isolation and characterization of immune cells from umbilical cord blood

- Procurement of stem cells from adipose tissue for perspective use in the field of aesthetic medicine (lipofilling)

- Cost reduction program in Scandinavia to be implemented

Leipzig, 26 June 2018 - Vita 34 AG (ISIN: DE000A0BL849, WKN: A0BL84), the second largest stem cell bank in Europe, continues to work on the implementation of its Vision 2021. All Group activities will be reviewed for their sustainable contribution to short, medium and long-term earnings improvement.

In the field of Research & Development (R&D), Vita 34 will concentrate on two focus areas in the future: in the core market of umbilical cord blood the identification, isolation and characterization of immune cells will move into focus. The future market of personalized cell therapy offers attractive business areas that will expand and round off the business model in the future. As part of its portfolio expansion, Vita 34 will also drive along the further development of the Adipovita product. Based on Adipovita, which makes it possible to obtain stem cells from adipose tissue from adults, Vita 34 plans to position itself in the area of ​​lipofilling in the medium term, opening up to the attractive aesthetic medicine market. Due to insufficient commercialization opportunities, development projects in the area of ​​plant stem cells, resulting from the acquisition of BioPlanta in 2011, will be discontinued.

In addition, from July 2018, Vita 34 will cease its active marketing activities in Denmark, Sweden and Norway. After weighing up economic and social aspects, the Management Board decided to take this step after Vita 34 was unable to establish a sustainable positive new customer business through its subsidiary Vita 34 ApS since entering the Scandinavian market in 2015. On the basis of a careful review, there was no prospect of generating a sustainable profit surplus with the current orientation of the business activities. This is largely due to the special market conditions in the Scandinavian region.

The Danish subsidiary Vita 34 ApS will be remained and will continue the storage business of the existing units. As a result, the Scandinavian subsidiary will contribute a sustained positive EBITDA of around EUR 0.5 million to Group EBITDA starting in 2019. Based on the business development in 2017, this corresponds to an increase in earnings at group level of around EUR 1.0 million.

"Since the management change in mid-2017, we have been reviewing all our activities for their contribution to the current and future profitability of the Group," explains Dr. Wolfgang Knirsch, CEO of Vita 34 AG. "Over the past few months, we have intensively examined our structures in the area of ​​R&D and in Sales for sustainability. With the adjustments that have now been made, we will be much better positioned in the future and can invest our resources in a much more targeted manner. "

Against the background of the effects of savings and one-time expenses arising from the measures taken in the current financial year, the Management Board of Vita 34 AG remains unchanged in its current outlook for the 2018 financial year.

Further information on Vita 34 AG and its product range is available on the company's website at www.vita34.de.

Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG

Phone: +49 (0341) 48792 - 0
Mobile: +49 (0174) 9091190
Email: ingo.middelmenne@vita34.de

Company Profile

Vita 34 was founded in Leipzig in 1997 as the first private stem cell bank in Europe and, as a complete provider of cryo-preservation services, offers collection, logistics, preparation, and storage of stem cells from umbilical cord blood and tissue. Stem cells are a valuable base material for medical cell therapy and are kept alive at temperatures of minus 180 degrees Celsius, in order to be available for use in a treatment if needed. More than 200,000 customers from Germany and 28 other countries have already provided for their children's future with a stem cell deposit at Vita 34.