Cryo-Cell International Inc (CCEL) 2008 Q2 法說會逐字稿

Good afternoon and welcome to the Cryo-Cell International second-quarter conference call. Before we begin, I would like to point out that the Company will be making forward-looking statements and that they are (technical difficulty) suggestions certain risks and uncertainties. I encourage everyone to look at the SEC filings for Cryo-Cell International for additional details. I will now turn the call over to Mercedes Walton, Chief Executive Officer of Cryo-Cell International.

下午好，歡迎參加 Cryo-Cell International 第二季電話會議。在開始之前，我想指出，公司將做出前瞻性陳述，這些陳述（技術難度）包含某些風險和不確定性。我建議大家查看 Cryo-Cell International 提交給美國證券交易委員會 (SEC) 的文件，以了解更多詳情。現在，我將電話會議交給 Cryo-Cell International 執行長 Mercedes Walton。

Thank you, operator. Good afternoon and thank you for joining us on our first ever conference call with the investment community. For those of you who not yet seen the press release we issued this afternoon, you will find it posted on our website at Cryo-Cell.com investor relations.

謝謝接線生。下午好，感謝您參加我們與投資界的首次電話會議。如果您還沒有看到我們今天下午發布的新聞稿，您可以在我們的網站 Cryo-Cell.com 投資者關係頁面找到它。

On today's call, I plan to first provide an overview of our Company and discuss the potential we see in the industry. I will then turn the microphone over to Dr. Julie Allickson, Vice President, Laboratory Operations, Research and Development to update you on Cryo-Cell's recent and exciting accomplishments for the first half of our 2008 fiscal year. Jill Taymans, Vice President, Finance and Chief Financial officer will then share key highlights of our second-quarter financial results. I will then make final comments.

在今天的電話會議上，我計劃首先概述公司情況，並討論我們所看到的行業潛力。然後，我將把麥克風交給實驗室營運和研發副總裁Julie Allickson博士，她將向大家介紹Cryo-Cell在2008財年上半年取得的最新和令人振奮的成就。之後，財務副總裁兼財務長Jill Taymans將分享我們第二季財務業績的要點。最後，我將做最後的總結。

Cryo-Cell was established in 1989 with a primary focus on the cryo preservation of umbilical cord, UCord, stem cells for family use. For more than two decades the scientific community has recognized the promise and hope and in many cases the real-life saving benefits that can come from preserving cord blood at birth.

Cryo-Cell成立於1989年，主要致力於臍帶血（UCord）幹細胞的冷凍保存，供家庭使用。二十多年來，科學界已認識到臍帶血在出生時保存所帶來的希望和前景，以及在許多情況下所帶來的實際救命益處。

Banking umbilical blood cord blood stem cells for families is Cryo-Cell's core business and it's a commitment we take very seriously. As research continues to evolve, we remain focused on ensuring that our patients are able to take important safeguarding measures to preserve a healthy future for their children through the programs we have developed in the commercial arena.

為家庭儲存臍帶血幹細胞是Cryo-Cell的核心業務，我們對此承諾非常重視。隨著研究的不斷發展，我們始終致力於確保我們的患者能夠透過我們在商業領域開發的項目，採取重要的保障措施，為子女守護健康的未來。

Cryo-Cell is at the forefront of an exciting time in stem cell research and regenerative medicine. As a leader in stem cell innovation, Cryo-Cell is looking beyond what is possible today and focusing on the potential of stem cell research and science as regenerative therapies emerge over time.

Cryo-Cell 正處於幹細胞研究和再生醫學領域的激動人心前沿。作為幹細胞創新領域的領導者，Cryo-Cell 的視野超越了現有的可能，並專注於隨著再生療法的不斷湧現，幹細胞研究和科學的潛力。

Our Company is building upon the success of cord blood stem cells which has successfully been used to treat over 75 diseases and over 8000 transplants worldwide. Cryo-Cell believes that there are many potential forces of noncontroversial stem cells that may potentially serve to treat a broad range of life-affecting diseases that afflict millions of people around the world.

我們公司正以臍帶血幹細胞的成功為基礎，臍帶血幹細胞已成功應用於治療超過75種疾病，全球已完成超過8,000例移植。 Cryo-Cell相信，無爭議的幹細胞蘊藏著許多潛力，有望用於治療困擾全球數百萬人的各種危及生命的疾病。

For example, Cryo-Cell is particularly prod to have discovered a rich and lucrative source of stem cells that can be harvested and cryopreserved from menstrual fluid that has historically been discarded as medical waste. In November 2007, the Company introduced a revolutionary new service, C'elle, which empowers women to potentially safeguard their future health by cryopreserving highly prolific stem cells that have demonstrated the ability to differentiate into many other stem cell types of the body.

例如，Cryo-Cell 尤其欣喜地發現了豐富且利潤豐厚的幹細胞來源，可以從以往被當作醫療廢物丟棄的經血中提取並冷凍保存。 2007年11月，該公司推出了一項革命性的新服務——C'elle，透過冷凍保存已證實具有分化成人體多種其他類型幹細胞能力的高產幹細胞，幫助女性保障未來的健康。

Tremendous synergies exist between our signature UCord service and C'elle. Cryo-Cell now offers an exclusive, highly differentiated and value added service; Protect Baby, Protect Mom; that provides the family with the ultimate health care investment that may potentially grow in value over time as stem cell therapies emerge.

我們標誌性的UCord服務與C'elle之間存在著巨大的綜效。 Cryo-Cell現提供一項獨家、高度差異化的加值服務－「守護寶寶，守護媽媽」。這項服務為家庭提供終極醫療保健投資，隨著幹細胞療法的興起，其價值可能隨著時間的推移而增長。

We are actively pursuing numerous opportunities for scientific collaboration with globally recognized stem cell researchers. These individuals are keenly eager to partner with our Company to leverage Cryo-Cell's extensive intellectual property portfolio for the development of innovative new therapeutic applications that may potentially save and improve the quality of life for millions.

我們正積極尋求與全球知名幹細胞研究人員進行許多科學合作的機會。這些研究人員熱切渴望與我們公司合作，利用 Cryo-Cell 豐富的智慧財產權組合，開發創新的新型治療應用，從而挽救數百萬患者的生命並改善其生活品質。

As a result of Cryo-Cell's long-term strategic plan to invest in the growth of our business and position the Company as the leader of stem cell innovation, we're now well-positioned to leverage unique opportunities to harness and transform our core technology -- cord blood banking -- to discover new possibilities at the forefront of regenerative science. At Cryo-Cell's Center for Regenerative Medicine, the Company is actively researching new types of stem cells with the potential to advance women's health care in the future. Dr. Julie Allickson will now provide an update for the first half of our fiscal year. Julie?

Cryo-Cell 制定了長期策略計劃，致力於投資業務成長，並將公司定位為幹細胞創新領域的領導者。多虧於此，我們目前擁有得天獨厚的優勢，可以充分利用和改造我們的核心技術——臍帶血庫，探索再生科學前沿的新機會。在 Cryo-Cell 再生醫學中心，該公司正在積極研究未來有望促進女性醫療保健發展的新型幹細胞。 Julie Allickson 博士將介紹我們上半年財報的最新情況。 Julie？

Thank you Mercedes. Cryo-Cell has made great strides in the first six months of our fiscal year. Some of the highlights include the publication in April of a study in the Journal of Cell Transplantation showing that stem cells found in menstrual blood proliferate rapidly and have significant potential to develop into multiple cell types. Known as menses, these adults stem cells are multipotent stem cells meaning they have the capacity to differentiate into important cells such as bone, cartilage, fat, nerve, and cardiogenic cells and have the potential to one day treat a host of diseases including osteoporosis, stroke, Alzheimer's, and Parkinson's to name a few.

謝謝梅賽德斯。 Cryo-Cell 在本財年的前六個月取得了長足的進步。其中的一些亮點包括四月發表在《細胞移植雜誌》上的一項研究，該研究表明，月經血液中的幹細胞增殖迅速，並具有分化成多種細胞類型的巨大潛力。這些被稱為月經的成體幹細胞是多能幹細胞，這意味著它們能夠分化成骨骼、軟骨、脂肪、神經和心臟源性細胞等重要細胞，並有潛力在未來治療包括骨質疏鬆症、中風、阿茲海默症和帕金森氏症在內的一系列疾病。

These cells also divide rapidly indicating a possible therapeutic value such as for anti-aging or sports medicine treatments. All of us at Cryo-Cell are very excited about menses as they are an easily accessible source, they're noncontroversial and it's a renewable stem cell source.

這些細胞也快速分裂，顯示其可能具有治療價值，例如用於抗衰老或運動醫學治療。 Cryo-Cell 的所有人都對月經細胞充滿熱情，因為它們易於獲取，沒有爭議，而且是一種可再生的幹細胞來源。

Clinical trials are now underway to test the safety and efficacy of menses in animal models for diabetes, neurodegenerative diseases and cardiovascular regenerative therapies. Many other studies are being developed with researchers around the world and there as there is a keen interest in studying the cells in everything from myocardial infarction to cartilage regeneration and cell tracking for therapeutic applications.

目前正在進行臨床試驗，以測試月經在糖尿病、神經退化性疾病和心血管再生療法動物模型中的安全性和有效性。世界各地的研究人員正在進行許多其他研究，因為人們對研究從心肌梗塞到軟骨再生以及細胞追蹤等各種治療應用的細胞有著濃厚的興趣。

In November 2007 Cryo-Cell announced the launch of the world's first ever service provided for women to store their own menstrual stem cells. Called C'elle, our product enables women to collect menstrual flow containing adult stem cells which is then cryogenically preserved in a manner similar to stem cells from umbilical cord blood.

2007年11月，Cryo-Cell宣布推出全球首個專為女性儲存自身月經幹細胞的服務－C'elle。本產品幫助女性採集含有成體幹細胞的月經血，然後以類似臍帶血幹細胞的方式進行低溫保存。

To date we've had the opportunity to present our research findings on the menses at some of the national stem cell meetings to include the International Society of Stem Cell Research held in Philadelphia June, the International Society of Stem Cell Therapy held in Miami in May, and the Stem Cell Congresses Cambridge Healthtech Institute Molecular Medicine Tri-Conference held in San Francisco in March; for a group of physicians at the ACOG meeting, American College of Obstetrics and Gynecology held in New Orleans in May.

到目前為止，我們已經有機會在一些全國性的幹細胞會議上展示我們關於月經的研究成果，其中包括 6 月份在費城舉行的國際幹細胞研究學會會議、5 月份在邁阿密舉行的國際幹細胞治療學會會議、3 月份在舊金山舉行的干細胞大會劍橋健康技術研究所分子醫學三方會議；以及 5 月份在新奧爾良舉行的美國婦產科學院 (ACOG) 上研究我們的研究醫生會議。

We have also been invited to present the most recent findings at the AABB meeting which will be held in Montreal, Quebec, Canada in November of this year. The AABB organization is known for advancing transfusion and cell therapies worldwide.

我們也受邀在今年11月於加拿大魁北克省蒙特婁舉行的AABB會議上展示最新研究成果。 AABB組織以推動全球輸血和細胞療法的發展而聞名。

We announced a research development agreement with Saneron CCEL Therapeutics in January of 2008 to to develop promising regenerative therapies utilizing Cryo-Cell, C'elle stem cell technology. Cryo-Cell and Saneron are working on collaborative research that involves C'elle stem cell technology in preclinical models for certain neurological diseases and disorders. We look forward to codeveloping perspective applications that use our novel technology and innovative proprietary service with Saneron.

我們於2008年1月宣布與Saneron CCEL Therapeutics達成研究開發協議，旨在利用Cryo-Cell和C'elle幹細胞技術開發前景看好的再生療法。 Cryo-Cell和Saneron正在合作研究，將C'elle幹細胞技術應用於某些神經系統疾病和病症的臨床前模型。我們期待與Saneron共同開發利用我們新技術和創新專有服務的前瞻性應用。

We also recently announced the results of a study on the use of umbilical cord blood cell therapy for the treatment of Alzheimer's disease. Stem cells derived from umbilical cord blood have shown early potential in fighting Alzheimer's disease. The researchers assessed two markers of Alzheimer's progression in the brain which were significantly reduced by greater than 60% as a result of the cord blood infusions. The study was conducted by researchers from the University of South Florida and Saneron CCEL Therapeutics and was funded in part by Cryo-Cell.

我們最近也發表了一項關於臍帶血細胞療法治療阿茲海默症的研究結果。臍帶血幹細胞已顯示出對抗阿茲海默症的早期潛力。研究人員評估了大腦中阿茲海默症進展的兩個標記物，這些標記在臍帶血輸注後顯著降低了60%以上。這項研究由南佛羅裡達大學和Saneron CCEL Therapeutics的研究人員進行，並由Cryo-Cell公司部分資助。

Now it's turn to Jill Taymans for Q2 financial results. Jill?

現在輪到 Jill Taymans 報告第二季財務業績了。吉爾？

Thanks, Julie, and good afternoon. Earlier today we published the results for the second quarter in Cryo-Cell's earnings release and I would like to point out a few of the highlights.

謝謝，朱莉，下午好。今天早些時候，我們在Cryo-Cell的財報中公佈了第二季的業績，我想指出一些亮點。

First, consolidated revenues for the second quarter were approximately $4.5 million, flat as compared to approximately $4.5 million for the second quarter of 2007. The Company reported a net loss in the second quarter 2008 of approximately $356,000 or $0.03 per basic common share compared to a net loss of approximately $1.4 million or $0.12 per basic common share in the second fiscal quarter of 2007.

首先，第二季的綜合收入約為 450 萬美元，與 2007 年第二季的約 450 萬美元持平。公司報告 2008 年第二季的淨虧損約為 356,000 美元或每基本普通股 0.03 美元，而 2007 年第二財政季度的淨虧損約為 140 萬美元或每基本普通股 0.12 美元。

The decrease in the net loss in the second quarter of fiscal 2008 is in part the results of a 1% decrease in cost of sales and a 25% decrease in marketing, general and administrative expenses. In addition, research and development expenses were approximately $49,000 in the second quarter of 2008, a decrease of approximately 73% in comparison to the same period in 2007.

2008財年第二季淨虧損的減少部分源自於銷售成本下降1%以及行銷、一般及行政費用下降25%。此外，2008年第二季研發費用約4.9萬美元，較2007年同期下降約73%。

Research and development expenses in 2008 represent expenses related to the development of companies new C'elle menstrual stem cell technology. As of May 31, 2008 the Company had approximately $4.2 million in available cash, cash equivalents, marketable securities and other investments. The Company had no long-term debt at the end of the quarter. With that, I'd like to turn it back over to over to the Company's CEO, Mercedes Walton.

2008年的研發費用是指與公司開發新的C'elle月經幹細胞技術相關的費用。截至2008年5月31日，本公司擁有約420萬美元的可用現金、現金等價物、有價證券及其他投資。截至本季末，公司沒有長期債務。至此，我想將會議交還給公司執行長梅賽德斯·沃爾頓。

Thanks, Jill and Julie. As stated in our earnings release, the Company continues to be encouraged by Cryo-Cell's improved performance in the second quarter of 2008. In 2006, following nine consecutive quarters of profitability spanning the first quarter of 2004 through the second quarter of 2006, Cryo-Cell's Board of Directors made the deliberate decision to forsake continued near-term profitability in order to invest in the long-term growth of our business.

謝謝，吉爾和朱莉。正如我們在財報中所述，Cryo-Cell 在 2008 年第二季的業績改善令公司持續感到鼓舞。 2006 年，在 2004 年第一季至 2006 年第二季連續九個季度獲利之後，Cryo-Cell 董事會慎重決定放棄短期獲利，轉而投資於業務的長期成長。

In accordance with this long-term strategic plan, we believe the Company is showing significant progress with the launch of our new product, C'elle, combined with the realization of significant operating efficiencies that have resulted in year-over-year expense reductions of 21% in the first half of fiscal 2008. Notwithstanding the overall impact of the domestic economy on discretionary consumer and family spending, intensified industry competition, and the cost of new product development, Cryo-Cell has now introduced a highly differentiated new service in the United States and is making significant progress toward introducing the new service in the global marketplace based on our expensive intellectual property portfolio.

根據這項長期策略計劃，我們相信，隨著新產品 C'elle 的推出以及營運效率的顯著提高，公司正在取得重大進展，2008 財年上半年的支出與去年同期相比減少了 21%。儘管國內經濟對可自由支配的消費者和家庭支出產生了整體影響，行業競爭加劇，新產品開發成本增加，但 Cryo-Cell 現已在美國推出了一項高度差異化的新服務，並且正在基於我們昂貴的知識產權組合，朝著將該新服務推向全球市場的方向取得重大進展。

Simultaneously, the Company has also achieved impressive reductions in marketing, general and administrative expense. In addition, there is growing worldwide interest from both existing Cryo-Cell affiliates and new perspective partners who are keenly interested to introduce C'elle in a broad range of global markets. We anticipate that emerging revenue channels from C'elle technology licenses, processing and storage royalties, and global product distribution may favorably impact the Company's balance sheet over time.

同時，公司也大幅降低了行銷、一般及行政開支。此外，來自Cryo-Cell現有關聯公司和新的潛在合作夥伴的全球興趣日益濃厚，他們熱切希望將C'elle引入全球廣泛市場。我們預計，C'elle技術授權、加工和倉儲特許權使用費以及全球產品分銷等新興收入管道，將在未來對公司的資產負債表產生正面影響。

In summary we're very pleased with Cryo-Cell's progress and we believe that the Company is well-positioned to deliver increased shareholder value in the coming periods. Just a few decades ago, the utility of umbilical cord blood stem cells was a mere vision in the eye of a few progressive scientists. Today thanks to brilliant and [tireless] global research, more than 8000 lives have been saved with this technology. With innovations like C'elle, we hope to continue to build upon Cryo-Cell's leadership in stem cell innovation.

總而言之，我們對 Cryo-Cell 的進展感到非常滿意，並相信公司已做好準備，在未來一段時間內為股東創造更高的價值。就在幾十年前，臍帶血幹細胞的應用還只是少數進步科學家的夢想。如今，由於全球範圍內的卓越且不懈的研究，這項技術已挽救了超過 8000 人的生命。憑藉 C'elle 等創新成果，我們希望繼續鞏固 Cryo-Cell 在幹細胞創新領域的領導地位。

I would like to take this opportunity to thank some of the world-renowned doctors and researchers with whom we have recently collaborated including Dr. Camillo Ricordi, Director of the Cell Transplant Center and the Diabetes Research Institute at the University of Miami; Dr. Steven Noga, Director of Medical Oncology, Hematology, Alvin & Lois Lapidus Cancer Institute; and Director of Cellular Therapeutics Program, Sinai Hospital of Baltimore; and Dr. Cyndy Sanberg, Vice President, Research & Development for Saneron.

我想藉此機會感謝最近與我們合作的一些世界知名的醫生和研究人員，包括邁阿密大學細胞移植中心和糖尿病研究所主任卡米洛·里科迪博士、阿爾文和路易斯·拉皮杜斯癌症研究所腫瘤內科、血液科主任、巴爾的摩西奈醫院細胞治療項目主任史蒂文·諾加博士以及 Saneron 研發副總裁辛迪·桑伯格博士。

I would also like to take this opportunity to remind you of our upcoming annual meeting on Tuesday July 15 and look forward to meeting with some of you personally at the meeting. In the meantime we hope to continue this progress and forge ahead while making rapid strides on the exciting frontier of stem cell innovation.

我也想藉此機會提醒大家，我們即將於7月15日星期二舉行年度會議，並期待在會上與各位親切會面。同時，我們希望繼續推進這一進程，在幹細胞創新這一令人興奮的前沿領域取得快速進展。

Thank you for your interest in Cryo-Cell and we look forward to bringing you an update on the Company along with our commercialization, globalization and financial progress at the end of Q3 '08 in October. Thank you so much for joining us. Good bye.

感謝您對 Cryo-Cell 的關注，我們期待在 2008 年 10 月第三季末向您介紹公司的最新情況，以及我們的商業化、全球化和財務進展。非常感謝您的參與。再見。

Thank you everyone. That does conclude today's conference. You may now disconnect.

謝謝大家。今天的會議到此結束。現在可以斷開連線了。