SOURCE: WellTek Incorporated

April 12, 2011 16:30 ET

WellTek, Inc. Acquires Stem Cells for Hope, Inc.

Expands Into Estimated $20.6 Billion Global Stem Cell Therapeutics Market

ORLANDO, FL--(Marketwire - Apr 12, 2011) - WellTek, Inc. (OTCBB: WTKN), a global health, fitness and wellness company, today announced the acquisition of Stem Cells for Hope, Inc. (SCFH), a leading provider of stem cell transplantation therapy technologies for patients worldwide. The acquisition is uniquely slated to further develop and expand WellTek's existing health and wellness offerings to serve patients with neuro-degenerative diseases and otherwise incurable physiological injuries. The shareholders of SCFH received 15 million shares of WellTek restricted common stock in consideration for 100% of the stock of SCFH.

The acquisition will allow SCFH to build on its international network of hospitals and clinics that specialize in stem cell transplantation therapies, as well as associated developments in stem cell biological products and protocols. It will also provide an expansive avenue of complete concierge-like medical services, of which WellTek and SCFH will manage all logistics such as travel, lodging, transportation and VIP customs passage during the treatment period to assure a relaxing and stress-free experience for patients.

This acquisition facilitates WellTek's entry into the $100 billion medical tourism market where patients travel across international borders to access health care or medical attention.

"WellTek has been working with doctors and hospitals around the world through sales of our MedX equipment line for many years," explained Randy Lubinsky, CEO of WellTek, Inc. "Because of this, we are confident that the company can leverage those relationships to expand SCFH and other strategic acquisitions in the medical tourism space."

Global Stem Cell Market on the Rise
The global market for stem cell therapeutic treatments has consistently trended upward. The general stem cell global market has been forecast by numerous life sciences analysts to reach $88.3 billion in 2014. In the therapeutic treatments sub sector -- where both WellTek and SCFH participate -- the global market is expected to reach $20.6 billion in 2015, up from $6.8 billion in 2009. Contributing to the continuous market increase are such factors as a rising patient population and the associated increase in people who will continue to suffer from degenerative conditions and debilitating injuries deemed untreatable with traditional medicines and therapies.

The U.S. is the most notable stem cell market in the world. The market has recently increased following the lifting of the 8-year-old ban on Federal funding for embryonic stem cell research in March 2009. Europe is the next largest and fastest-growing market, with Canada, Asia and the United Kingdom following suit.

Stem Cell Therapeutics: A New, But Not So New Treatment
While stem cell therapy and regenerative medicine is considered a new and promising field within the life sciences for many diseases such as Parkinsons, diabetes, heart diseases and cancer, as well as injuries for which there has previously been no effective method of treatment, the stem cell transplant technologies offered though WellTek and SCFH have been successfully used to treat patients worldwide since 1981.

WellTek and SCFH's therapies include stem cell transplants that contain a patient's own adult stem cells, harvested cord blood stem cells, and a proprietary stem cell biological solution. These transplants are ideal for people suffering with neuro-degenerative diseases and physiological injuries. A sample of medical conditions currently being treated at associated hospitals and clinics (and their general statistics), as well as WellTek's target vertical markets include the following:

  • Multiple Sclerosis (there are 750,000 new U.S. cases per year);
  • Stroke (15 million global cases each year);
  • Parkinson's (4.5 million worldwide with 60,000 new cases each year);
  • Optic Neuritis (1.4 to 6.4 new cases per 100,000 people, annually);
  • Macular Degeneration (9.1 million cases in the U.S. alone);
  • Liver Cirrhosis (results in 20,353 U.S. casualties per year).

Furthermore, the National Library of Medicine reports that 5 million patients have already been treated using stem cell therapy globally.

Global Growth
WellTek and SCFH currently operate through stem cell treatment facilities located in Mexico and the Ukraine. To support global patient growth forecasts, treatment locations are scheduled to be launched through additional locations in Mexico, the Caribbean, Central and Latin America, Thailand, China and Dubai.

Key Leadership
SCFH Chairman and CEO Vladimir Kravchenko, who co-founded the company in 2008, was appointed to WellTek's board of directors and will serve as WellTek's President. Peter Sidorenko, SCFH's COO and co-founder, will serve as a Senior Vice President for WellTek.

"We are excited to be joining the WellTek team and look forward to expanding SCFH through organic growth and potential strategic acquisitions," stated Mr. Kravchenko.

Treatments and therapies are currently available through the companies' associate facilities in Mexico and the Ukraine. To learn more about the acquisition or stem cell technologies and treatment offerings, please visit www.stemcellsforhope.com.

About WellTek Incorporated
WellTek is a global health, fitness and wellness company that provides proven solutions to help address some of the world's most pressing and costly health and wellness challenges. The Company owns and operates WellTek Events, Inc., a fully engaging virtual event platform specializing in the healthcare and wellness market. The Company's subsidiary, MedX Limited, manufactures, markets and distributes the most advanced medical exercise equipment to the medical and fitness markets. WellTek's most recent acquisition, Stem Cells for Hope, deploys the latest treatment technology in regenerative medicine using stem cell transplantation therapy and facilitates a gateway into the $100 million medical tourism industry. For more information about the Company, please visit www.welltekinc.com or call Roxie Mooney at (407)704-8950.

Certain statements contained in this press release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective Company's Securities and Exchange Commission filings, that may cause actual results to materially differ from projections. Although the Company believes that its expectations are reasonable assumptions within the bounds of its knowledge of its businesses, expectations, representations and operations, there can be no assurance that actual results will not differ materially from their expectations. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the Company's ability to execute properly its business model, to raise additional capital to implement its continuing business model, the ability to attract and retain personnel -- including highly qualified executives, management and operational personnel, ability to negotiate favorable future debt facilities and capital raises, and the inherent risk associated with a diversified business to achieve and maintain positive cash flow and net profitability. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will, in fact, occur.

Contact Information

  • Contact:
    WellTek, Inc.
    Roxie Mooney
    407.704.8950