CureSource Sold to California-Based Cord Blood

A Charleston-based company that freezes and banks blood from umbilical cords for future medical treatments has been purchased by a California competitor that plans to establish a national footprint in that industry. The terms of the sale of CureSource to Cord Blood America Inc. were not disclosed. The deal was finalized Tuesday, said Matthew Schissler, chairman and chief executive officer of Los Angeles-based Cord Blood America.

CureSource will continue to operate under new management in Charleston, though Schissler said he anticipates that the name of the company will eventually be changed to CorCell, which is Cord Blood America's sales unit.

With about 340 customers, CureSource was not considered a large player by industry standards, but its assets were viewed as valuable, Schissler said. Also, he said, the acquisition gives Cord Blood America a physical presence in a fast-growing part of the country. "Though we've done sales in all 50 states, the South has been fairly weak for us," said Schissler, whose company serves about 20,000 customers.

CureSource was formed in 2003, just as the fledgling industry was starting to take off. "We're starting to see some consolidation now, and we're one of the consolidators," Schissler said.

Umbilical cord blood is rich with stem cells that offer potential cures for certain diseases, including leukemia and other types of cancer, as well as blood and immune disorders. Companies such as CureSource and CorCell target expectant parents who want stem cells preserved in case they are ever needed, either for their children, other family members or strangers.

The industry charges fees to process, cryogenically freeze and store the genetically unique samples, which are taken immediately after childbirth. The world's largest cord blood registry is San Bruno, Calif-based Cord Blood Registry, which expects to have more than 200,000 stem-cell collections in cold storage before the end of the year.

Donald Deluca Sr., chairman of CureSource who with son Don Deluca Jr. ran the Wapoo Road company, could not be reached for comment Tuesday. "We are pleased with this transaction because Cord Blood America believes, as we do, in affordable service and taking care of the needs of the families," the elder Deluca said a statement.