View the StockGuru Profile for Tasco Holdings International Inc. (OTCBB: THII):
Tasco Holdings International Inc.
Tasco Holdings International Inc. (OTCBB: THII) is a development stage company that recently acquired Bio-Matrix Scientific Group, Inc. The Company is engaged in the cryogenic storage of stem cells and the development of medical devices used in live tissue transfer and stem cell research. Additionally, the Company has developed 192 disposable instruments for use in plastic surgery, tissue management and stem cell research. These instruments have been designed to harvest adult stem cells from adipose tissue. The company plans to commercialize these instruments to plastic surgeons and patients to help store stem cells derived from their adipose tissue (extracted primarily during the liposuction process).
Tasco Holdings/Bio-Matrix is currently in the process of constructing a 15,000 square foot state-of the-art facility at San Diego for the processing and cryo-storage of adult stem cells. In addition to stem cell bank and research laboratory functions, this facility will also be engaged in the development of stem cells and medical devices that can be used in tissue management for human and veterinary applications. The building will house the company’s secure cryogenic adult stem cell bank, aseptic cellular/tissue processing room, hematology, microbiology and flow cytometry laboratories. Additionally, this facility will have three separate research laboratories, a tissue management/stem cell instrumentation division, and a marketing and corporate office. The building, situated in the heart of San Diego, is expected to be ready by the end of September.
Stem Cell Activities
Tasco/Bio-Matrix is focused on the development of stem cell banks for the cryo-preservation of adult stem cells. People can save their stem cells to help fight diseases like Diabetes, Osteoporosis, Parkison’s and other heart-related problems, which may arise in the future. Stem cells, which have been frozen in suspended nitrogen, are no longer subject to the aging process. As a result, these cells possess the same functions and activity which they possessed on the day they were collected. What makes the company stand out in the marketplace is the fact that the company is expected to be the first one that can store stem cells harvested from the adipose tissue of human beings. There are several companies that provide the facility to store cord blood stem cells. Given the increasing number of liposuctions taking place in the U.S., there should be significant demand for the processing and storage of stem cells from fat tissue.
The company plans to enter into agreements with end-use manufacturers, marketing and distribution channels in exchange for licensing fees, royalties and other compensation. The company has already entered into an agreement with Cord Blood America, Inc., for the marketing of its adipose stem cell banking services. As per the terms of the agreement, Cord Blood Bank America will be entitled to a 40% share of the fees collected. Management is primarily planning to market its stem cell banking services to plastic surgeons, hospitals and medical schools. The company plans to market its services to these targeted markets through extensive advertising and promotional efforts.
Stem Cell Instrumentation
Tasco/Bio-Matrix has developed approximately 192 disposable instruments for use in plastic surgery and stem cell research. These instruments have been so designed that they can be used to extract stem cells from adipose tissue. Management plans to market and sell these instruments to plastic surgeons and patients to help store stem cells for medical treatments. The American Society of Plastic Surgeons has recently reported that liposuction has become the most common procedure amongst cosmetic surgery procedures. Since these surgical instrument kits have been designed to provide direct assistance in the liposuction process, the company could raise significant revenues from their sale. Additionally, the Company has developed veterinary stem cell instrumentation for stem cell therapy. These instruments are currently in the beta testing stage and are expected to be of use in both large sized as well as small sized animals including thoroughbred horses, elephants, dogs and cats. Tasco/Bio-Matrix appears committed to improving the quality of veterinary stem cell medicine by further developing solutions to meet the current needs of veterinary biotechnology.
Realizing the need to maintain intellectual proprietary, Tasco/Bio-Matrix has already applied for six provisional patents, one utility patent and one international patent application (as of February 2006) for the different instruments developed by it. These instruments would be used for harvesting stem cells, transferring tissue and for other extraction procedures. The company has appointed a patent attorney in the recent past to assist in the filing of these patents.
Proprietary Polymer Coating
Recently in February 2006, Bio-Matrix Scientific Group announced that it is developing a proprietary polymer coating for its stem cell and tissue management instruments, which would help to reduce friction in procedures and lead to greater predictability. At the time of the removal of tissue or stem cells, it is of utmost importance to minimize exposure to rough surfaces. The company believes that this polymer coating will help to minimize damage to cells. Once the development of this coating is complete, the company plans to retain exclusivity through a patent.
Stem Cell Industry Analysis
Stem cells are simply cells that have the ability to replicate themselves during the life of an organism, and give rise to mature cells that have the shapes and functional abilities of specialized cells (like heart cells or nerve cells). Human embryonic and adult stem cells have their own sets of advantages and disadvantages in cell-based regenerative therapies. The former cell type has the ability to become all cell types of the body, whereas adult stem cells can only differentiate into different cell types of their tissue of origin. However, adult stem cells (which have the ability to transform into all other cell types and revert back to being stem cells with greater reproductive capacity) have been successfully used in various surgeries, especially cardiac infarction. They have shown great possibilities in the treatment of diseases and conditions like diabetes, osteoporosis, Parkinson’s, Alzheimer’s, spinal cord injuries and burns. Recent research reports show that the adult stem cell is versatile and capable of transforming into various other cell types, like blood to brain or liver to blood, enhancing the chances of survival in life threatening diseases.
Currently, approximately $15 billion is spent annually to treat bone, cartilage and other connective structure injuries using allogra?, autologous gra?s and synthetic materials. There is also a shortage of replacement organs that are critical for life saving purposes. These can be resolved by stem cell technology, which can help grow new organs from a few cells and encourage an organ or tissue to repair itself.
Adult stem cells can be harvested from umbilical cord blood, adipose tissue or bone marrow. Stem cells from fat tissue are known for their quality and quantity, and can be derived through liposuction, which is a less invasive procedure as compared to that required to take stem cells from other tissues. Adipose tissue contains stem cells that can be used to regenerate bone, cartilage, heart muscle and nerve tissues, which makes the treatment of heart diseases much easier. The trend for liposuction has grown in the recent past, and reports show that the U.S. demand for cosmetic surgery products will grow 11.2% yearly through 2007, driven by new products, favorable cultural and demographic trends and improved technology. Non-surgical products like injections and dermabrasions are likely to lead the market. In 2004, American men and women between 35 and 40 had 5.3 million surgical and non-surgical cosmetic surgeries, while those between 51 and 64 had around 2.9 million. This trend is expected to grow further, providing an impetus to harvesting stem cells derived from adipose tissue. Reproductive cells and blood cells have been successfully stored at ultra low temperatures to suspend cellular metabolism for more than 15 years, and then unfrozen and transplanted into the patient’s body when required.
Stem cell banking facilities have been available in the U.S. for fitteen years and there are currently 23 cord blood banks operating in the country. Three companies — Cryo-Cell International, Inc., Cord Blood Registry and Viacell, Inc. — collectively own 80% of the market share. However, compliance with the Food and Drug Administrations’ operation requirements provide a major entry barrier into the stem cell banking industry, as there are significant costs associated with compliance.
Today’s stem cell therapies depend on cells donated by other people, thereby raising the chances of the patient’s immune system rejecting the donor cell. Current research may make it possible for people to use their own stem cells to regenerate tissue. Scientists believe that they will soon be able to manipulate stem cells taken from adults to create new tissue in the lab and re-transplant the same in the patient’s body, where it can work to restore an impaired function. Apart from that, therapeutic cloning may also help in the creation of embryonic stem cells, genetically similar to the patient. Another possibility is to develop a drug that would direct a stem cell to restore the lost function in a patient’s body. This would also do away with the invasive surgical procedures required to harvest and transplant stem cells. Some examples of treatments include replacing the dopamine-producing cells in the brains of people with Parkinson’s, developing insulin producing cells for Type I Diabetes, and repairing damaged heart muscles atter a heart attack with cardiac muscle cells.
David Koos Chief Executive Officer and Director
Davis Koos, the current CEO, officer, and Director of Tasco holds an extensive background in investment banking, venture capital, and investor relations. He also holds the position of a Chairman, CEO and acting CFO of Freezer, Inc. and Chief Executive Officer of Bio-Matrix Scientific Group, Inc. Dr. Koos has worked with major Wall Street Investment Banks including Sutro & Co., Everen Securities, and Dean Witter. Dr. Koos is the founder and a director at Venture Bridge, Inc. Additionally, he has been the Co-Founder, Director, President and Managing Director of Cell Source Research Inc. Dr. Koos holds a Series 7 and a Series 24 securities license and a Ph.D. degree in Economic Sociology and a DBA in Corporate Finance, both from Atlantic International University. Dr. Koos has also completed his masters in Economic Sociology from the University of California and is currently pursuing a Doctor of Business Administration degree in financial Management from Northcentral University.
Brian Pockett Chief Operating Officer, President, and Director
Mr. Brian Pockett, the current COO, President, and Director of Tasco holds over 29 years of experience in operations, marketing, sales and financial & grant development at various Corporate. He is also the Managing Director and Chief Operating Officer of Bio-Matrix Scientific Group, Inc. as well as the Managing Director and Chief Operating Officer of Freezer, Inc. Mr. Pockett founded PD&C (a private consulting firm) and served as a consultant to some of the largest companies in North America including Disney, SONY, Nintendo, Acclaim Entertainment, and UFO. His work has included global distribution, product development, commercialization, investment and intellectual properties. Mr. Pockett holds a B.A. degree from Azusa Pacific University and a Theology Degree from Crestmont Seminary.
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