FamiCord Group, the largest cord blood bank in Europe, and CelluGen Biotech, a biotech company headquartered in Gurgaon, India, have signed a letter of intent (LOI) to cooperate across a range of business activities. Dated April 25, 2019, the specifics of the LOI state that the companies will pursue cooperation within the “field of family cord blood banking of stem cells and the use of stem cells in experimental and standard therapies.” The companies may jointly develop ATMPs and drugs.
European Cord Blood Consolidation
This announcement by Famicord is the continuation of an ongoing trend within the European cord blood market, as well as the global cord blood market. 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, both in Europe and worldwide.
Thus far, FamiCord Group has completed more than a dozen M& deals within the European market. Vita34 and Esperite (CryoSave Group) have each completed 5-10 each acquisition deals. StemLab also did at least three M&A deals prior to being acquired by PBKM (FamiCord Group).
As a result of this flurry of M&A activity, most cord blood industry growth within Europe is inorganic. The number of cord blood banks in Europe also dropped from over 150 at its peak to less than 100 today. The three largest cord blood banks in Europe are the ones that have been executing consistent M&A activity: FamiCord Group, Vita34, and Esperite (CryoSave Group), respectively.
Additionally, Famicord (PBKM) announced in February of 2019 that it may acquire Esperite NV’s (Cryo-Save) stem cell banking business. While this transaction has not yet been completed, Cryo-Save has been having financial struggles. Under these circumstances, the deal will likely be confirmed.
FamiCord as a Leading Stem Cell Bank
Famicord represents an important competitor within the global cord blood banking marketplace. As stated by the company, it is now the fifth largest stem cell bank in the world.
Other FamiCord® Group facts and figures include:
- Storage of 280,000+ cord blood and tissue units
- 59 cord blood transplantations (26 in Poland, 4 in Hungary, 15 in Turkey, 1 in Jordan, 10 in USA, 2 in Spain, 1 in Portugal)
- 10 laboratory facilities: Poland (2), Hungary, Romania, Spain (2), Turkey, Switzerland (2), Portugal
- 2,100+ patients treated with mesenchymal stem cells (MSCs)
- Cooperation with 1300+ hospitals across Europe
Famicord and CelluGen Biotech
With regard to the recent LOI signed by Famicord and Cellugen Biotech, Jakub Baran, Co-founder and Shareholder of FamiCord Group states:
“We have decided to start cooperation with CelluGen because it can generate beneficial synergies for both companies in the field of family-based stem cell banking and the development of new stem cell-based drugs. Cooperation with CelluGen may also be a potential opportunity for the FamiCord Group to enter a new market outside Europe depending on the development of our cooperation; we do not rule out that in the future the next step may be capital involvement.”
To learn more about the cord blood banking market, view the “Global Cord Blood Banking Industry Report.”
Do you have questions about this partnership between Famicord and CelluGen? Ask them in the comments below.