US Supreme Court Conclusively Ends PharmaStem Therapeutics' Claim To Cord Blood Banking Patents

Highest Court's Action Upholds Previous Ruling That Patents Are Invalid

SAN BRUNO, Calif. - September 22, 2009 - Cord Blood Registry (CBR), the global leader in research, collection, and preservation of newborn stem cells from umbilical cord blood, announced today that the U.S. Supreme Court refused to consider PharmaStem's legal claims against CBR involving cord blood banking patents, thus confirming a lower court's ruling that PharmaStem's U.S. patents 5,192,553 ('553) and 5,004,681 ('681) are invalid. This action supports CBR's long held position that PharmaStem's legal claims have no basis. The Supreme Court's decision is final and cannot be appealed.

Separately, the U.S. Patent Office canceled PharmaStem's patents 6,461,645 and 6,569,427.

Following the Supreme Court's action, PharmaStem has signed an agreement confirming that any "Amnesty Agreement" entered into between PharmaStem and any doctor or medical services provider is of no force or effect. PharmaStem also acknowledged that it can't impose any restrictions whatsoever on doctors or medical services providers regarding the collection of umbilical cord blood for CBR. Click here for additional details.

"We have vigorously defended the rights and interests of our clients and the healthcare providers who partner with us," said Tom Moore, chief executive officer of CBR. "We are pleased that the courts have consistently ruled in our favor and that PharmaStem can take no further action."

Background
PharmaStem brought suit against CBR and several other family banks in 2002 alleging infringement of the '553 and '681 patents. CBR defended against these claims and the United States District Court found that CBR did not infringe on PharmaStem's patents. PharmaStem appealed this decision.

In 2007, the Federal Circuit Court of Appeals also ruled in CBR's favor. In addition, the Court of Appeals went even further and found that not only did CBR not infringe on the patents, but that the patents were themselves invalid. PharmaStem appealed to the U.S. Supreme Court, which denied PharmaStem's petition, thereby upholding the ruling of the U.S. Court of Appeals.

About Cord Blood Registry
CBR® (Cord Blood Registry®) is the world's largest and most experienced stem cell bank. For more than 15 years, we have led the industry in technical innovations. We are entrusted by parents with storing cord blood and tissue for more than 400,000 children. Moreover, CBR was the first bank to offer families in the U.S. storage for stem cells contained in cord tissue, which may help repair the body in different ways.

CBR has also helped more clients use their cord blood stem cells in treatments than any other family bank. Our research and development efforts are focused on helping leading clinical researchers advance regenerative medicine that may help families in the future. For more information, visit www.cordblood.com.