Capitalizing on Opportunities in Cord Blood Industry Growth
Posted Mar 22 2011 7:41am
Overview: Over the past 12 months, the cord blood banking industry has expanded through double digit growth, due to new entrants in the cord blood banking industry as well as revenue growth at existing operations. Deeper analysis reveals that of existing cord blood banks, most fall into one of two “camps,” either experiencing flat-line growth (less than 3% per annum) or substantively building revenue (17% or more per annum).
This finding begs the questions:
* What factors are causing a substantial number of new cord blood banks to open up business? Is it the result of a profit opportunity, an effect of advances in therapeutic applications, a social response to more parents being aware of the opportunity to store cord stem cells at birth, or are other factors driving the activity?
* What will be the effect of these new entrants to the cord blood banking industry for existing competitors?
* Perhaps most critically, what are the differences among the cord blood banks that are experiencing flat-line growth, versus those that have substantively built revenue over the past 12 months?
In BioInformant’s initial version of this report, "Choices in Cord Blood Banking – Factors Influencing Parental Decision-Making," launched April 2009, an survey of 1,200 expectant parents was used to provide a roadmap for how cord blood banks can best communicate and market their services to potential clients. The top-selling report explored the specific reasons that parents elect to store cord blood and what factors influence their decision-making in choosing a specific bank. (Click here to read the Executive Summary for the original version of the report.)
This expanded and updated version includes all content from the original report, as well as supplemental analysis of factors that have produced double-digit industry growth over the past year. It provides guidance on how to break through flat-line growth to become a fast-growing competitor within the cord blood industry.
Overview: Cord blood banking is increasingly being used to improve and save lives. Stem cells derived from umbilical blood have been used in more than 14,000 transplants worldwide to treat a wide range of blood diseases, genetic and metabolic disorders, immunodeficiencies and various forms of cancer. However, many expectant parents still do not fully understand the significance of cord blood storage. A study published in the Journal of Reproductive Medicine shows that a third of expectant parents are unaware of the option to preserve cord blood. Of the two-thirds who have some knowledge, 74% describe themselves as “minimally informed.
Part 1 of this market report used proprietary data-derivation techniques to analyze conditions of the Cord Blood Banking Industry. Part 2 of this report used an end-user survey of expectant parents to identify and analyze the factors involved in the decision to privately store, publicly donate, or discard cord blood at birth. More than 1,200 expectation parents answered the detailed survey. The survey initially focused on U.S. respondents, but due to international interest was expanded to include respondents from Canada, Mexico, South America, Europe, Asia, Australia, and other regions as well.