After a rapid growth period through the mid-2000s, the global cord blood banking market reached saturation and stabilized through approximately 2012. Since that time, the market has been aggressively consolidating.
In this article:
- Cord Blood Industry Consolidation in the U.S.
- Cord Blood Industry Consolidation in Europe
- Cord Blood Industry Consolidation in Asia
- Cord Blood Industry Consolidation in Latin America
- Cord Blood Industry Consolidation in India
- Trend of Umbilical Cord Blood Industry Consolidation
Cord Blood Banking Market
Cord Blood Industry Consolidation in the U.S.
— BioInformant (@StemCellMarket) June 16, 2018
Growing numbers of investors are now entering the marketplace, with M&A activity accelerating in the U.S. and abroad. In the United States, AMAG Pharmaceuticals announced June 15th that it is selling Cord Blood Registry (CBR) to GI partners for $530 million, after buying CBR for $700 million in 2015 (a $170 million dollar loss).
GI Partners Acquisition of Medical Banking Services
GI Partners, a private equity investment firm, decided to simultaneously acquire CBR and California Cryobank (CCB), world’s premier donor sperm and egg bank. Its strategy is to build value in both businesses by merging them into a single entity that will be the global leader in stem cell storage and reproductive tissue services.
Cryo-Cell Shifting from Private Storage
Cryo-Cell Acquires CORD:USE for $14 Million, Enters Public Cord Blood Sector https://t.co/GXVflLnJkj
— BioInformant (@StemCellMarket) June 22, 2018
On June 4, 2018, another large U.S. cord blood bank, Cryo-Cell International, announced that it was acquiring a hybrid public-private cord blood bank for $14 million (CORD:USE). As a result of the transaction, Cryo-Cell is entering the public banking sector.
Cryo-Cell’s co-CEO, David Portnoy, stated that he expects the acquisition to have the potential to “increase revenues by approximately 20%,” a bold statement for a single acquisition.
Other Acquisitions in the Cord Blood Banking Industry
Additionally, mid-sized cord blood banks within the U.S. have been rapidly acquiring smaller industry players to achieve inorganic growth. Examples of this trend include:
- AlphaCord acquired LifeSource Cryobank in November 2015 (its 5th acquisition of smaller banks)
- FamilyCord acquired Southern Cord in April 2016 and the assets of Cord Blood America, Inc. in February 2018
After the “big three” cord blood banks in the U.S. (CBR, Cryo-Cell, and ViaCord), FamilyCord is another dominant market player, with nearly 100,000 units in storage.
Cord Blood Industry Consolidation in Europe
Similarly, most of the cord blood industry growth in Europe is now inorganic. The number of European stem cell banks offering to store a baby’s cord blood has dropped by approximately one-third over the past ten years. This reduced the number of European market participants from approximately 150 to 100.
The industry leaders in this market segment include FamiCord Group, who has executed over ten M&A transactions, and Vita34, who has executed more than five.
Stemlab also did three deals, prior to being acquired by FamiCord for $16.5 million in July of 2018. Within the European market, inorganic growth in a critical strategy among the market leaders.
Cord Blood Industry Consolidation in Asia
Globally, networks of cord blood banks are also commonplace, with Sanpower Group establishing dominance in Asia. Although Sanpower has been relatively quiet about its operations, its website states:
It has reserved over 900,000 cord blood samples [in China], and the associated reserves amount to almost 1,200,000 when counting in the Cordlife reserves across Southeast Asian countries and regions. This means that Nanjing Cenbest has emerged as the world’s largest cord blood banking operator.
Cord Blood Industry Consolidation in Latin America
Furthermore, Cryoholdco has established itself as the market leader within Latin America. Created in 2015, Cryoholdco is a holding company that will control nearly 200,000 stem cell storage units by the end of 2018.
It now owns six cord blood banks within Mexico, Columbia, and Peru, as well as a dental stem cell storage company (DentCell) in Mexico. Today, Cryoholdco controls the following cord blood assets:
- Cryo-Cell Mexico
- DentCell (Dental stem cell storage company)
- Cord blood bank 1
- Cord blood bank 2
Resulting from its aggressive expansion, CryoHoldco represents the largest stem cell banking operation in Latin America.
Cord Blood Industry Consolidation in India
— BioInformant (@StemCellMarket) September 1, 2017
In September 2017, the Indian cord blood stem cell industry saw its first merger and acquisition deal.
LifeCell’s Increasing Unit Storage of Cord Blood
LifeCell, the largest private cord blood bank in India, took over the operations of Cryo-Save India (Cryo-Save). As part of the deal, it acquired 18,000 cryo-preserved cord units and corresponding customer agreements from Cryo-Save India, bringing LifeCell’s cord blood unit count to approximately 270,000.
Closing Down of Two Storage Facilities
Cryo-Save’s site at Bengaluru was shut down and the units were shifted to LifeCell’s Chennai location. LifeCell has a central processing facility at Chennai and cryostorage facilities at two locations in Chennai and Gurgaon.
Trend of Umbilical Cord Blood Industry Consolidation
While market factors can vary by geography, it is crucial to have a global understanding of the market. Research advances, findings from clinical trials, and technology advances do not know international boundaries. The cord blood market is global in nature and understanding dynamics limited to your region is not sufficient for making strategic, informed, and profitable decisions.
To understand the impact of these accelerating market trends, view BioInformant’s 265-page “Global Cord Blood Industry Report.”
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