Shineco Rises on Plans to Tokenize Cellular-Therapy Assets

By Kelly Cloonan

Shares of Shineco gained after the company announced a partnership to enable blockchain-based tokenization of cellular-therapy assets.

The stock climbed 33%, to $6.57, on Wednesday. Shares are down 97% this year.

The medical products and services provider said Wednesday it has partnered with blockchain infrastructure provider Plus Me to convert biological assets into tradable digital tokens, addressing pain points in the industry such as high user costs and illiquid asset pools.

Under the agreement, Plus Me would issue security tokens tied to Shineco's mesenchymal stem cells on the Ethereum network. The tokens can then be redeemed and later discarded at Shineco-affiliated cell-therapy centers.

Shineco also said it has secured a 51% controlling stake in Xi'an Dong'ao Health Management to bolster the initiative. The company, a specialist in cryogenic cell storage and clinical applications, would provide the off-chain infrastructure for token redemption as of Aug. 18, Shineco said.

"This marks the birth of a decentralized biotech economy--where every cell becomes a liquid, programmable asset, unlocking unprecedented value for medicine and investors alike," said Shineco Chief Executive Jennifer Zhan.

Write to Kelly Cloonan at kelly.cloonan@wsj.com