October 17, 2016
SANTA ANA, CA -- The Orange County District Attorney's office filed a lawsuit against DaVinci Biosciences and DV Biologics, two sister biological supply companies, accusing them of selling fetal-derived cells and tissues at unlawfully high markups around the world. The suit demands that the companies stop the sale of aborted baby tissue and cells and reimburse researchers who overpaid.
In the 21-page civil complaint, the district attorney's office charges unlawful and unfair business practices against DV Biologics, DaVinci Biosciences, Andres Isaias, Estefano Isaias, Sr. and Estefano Isaias, Jr. DaVinci Biosciences is jointly owned and operated by all three of the accused. Two of the three accused also own and manage DV Biologics. The two companies share the same office space, employees and management. There is no separate accounting of the financials, revenue and expenses as both companies are 100 percent commingled.
The suit alleges that the companies obtained aborted baby body parts from Planned Parenthood and sold tissues and stem cells from these aborted babies, earning hundreds of thousands in revenue from 2009 to 2015. State and federal law permits the donation of fetal tissue for research but forbids its sale for fees beyond certain strict limits, such as fees for processing and handling costs. According to the district attorney's office, this suit pertains to "illegally selling hundreds of fetal tissue products for profit."
Here are some examples of unborn baby parts that DaVinci Biosciences and DV Biologics sold at a profit margin of 70 percent or more:
- Heart - up to $674 in profit
- Liver - up to $233 in profit
- Stomach - up to $221 in profit
- Small Intestine - up to $664 in profit
DaVinci Biosciences and DV Biologics higher mark-up over their costs included inflated packaging, handling fees and shipping fees. Prices were intentionally set as high as possible to leave room to offer discounts and negotiate a lower price so as to ensure a profit on sales even with discounts. For example, the companies apparently charged as much as $700 per vial for tissue that cost only $20 to process. The same product was often randomly sold to different customers at different prices. U.S. customers and educational institutions were typically charged the highest prices whereas the deepest discounts were offered to international distributors around the world.
The companies also hired an outside marketing consultant to develop marketing materials, including a catalog, to support their sales effort for prenatal products made from fetal heart, brain, lungs, kidneys, liver, large intestines, small intestines, skin, skeletal muscle and bones.
Mat Staver, Founder and Chairman of Liberty Counsel said, "This is atrocious. These companies are making outrageous profits from killing babies. Our client, Sandra Merritt, was one of the journalists who blew the whistle on Planned Parenthood's corrupt practice of harvesting baby parts and greedily selling them. Liberty Counsel stands with her and supports this lawsuit by the Orange County District Attorney's office. The time for butchering precious babies and profiting from this human genocide must end."
DaVinci Biosciences and DV Biologics higher mark-up over their costs included inflated packaging, handling fees and shipping fees. Prices were intentionally set as high as possible to leave room to offer discounts and negotiate a lower price so as to ensure a profit on sales even with discounts. For example, the companies apparently charged as much as $700 per vial for tissue that cost only $20 to process. The same product was often randomly sold to different customers at different prices. U.S. customers and educational institutions were typically charged the highest prices whereas the deepest discounts were offered to international distributors around the world.
The companies also hired an outside marketing consultant to develop marketing materials, including a catalog, to support their sales effort for prenatal products made from fetal heart, brain, lungs, kidneys, liver, large intestines, small intestines, skin, skeletal muscle and bones.
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