Capitalizing on Opportunities in Cord Blood Industry Growth

This publication has been discontinued on July 14, 2011.

Below is the updated product.

Introduction

Abstract

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.

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.

SUMMARY OF METHODOLOGY:

As a technology company, BioInformant employs advanced techniques and state-of-theart approaches for collecting market research data. Our standard techniques derive market data from sources that utilize high-quality primary research inputs. Our techniques are constantly updated to the changing market conditions, and may be subject to change without notification.

The following constitute the basis for our Research & Analysis:

• Preliminary Research: Extensive secondary research based preliminary market evaluations.
• Fill-gap Research: Selectively sampled and focused primary research as a fill-gap strategy.
• Historic Analysis - Primary Product(s): Comprehensive analysis of all data for each primary product market.
• Historic Analysis - End-user Market(s): Historic analysis of all end-user industries/markets, requiring technology and market evaluations, growth projections, and market size estimation of end-user markets.
• Historic Supply Chain/Raw Materials Analysis: Comprehensive analysis of data for each primary market segment.
• Data Consolidation: Merging historic end-user market data to yield consolidated primary market data.
• Cross Linking: Primary market data (historic) is compared with resulting end-user consolidated market data and the variance in percentages between data sets is calculated by year.
• Variance Determination : A median figure for each year with a tolerance range equal to twice the variance percentage is placed. The resulting numbers are recorded.
• Projections : End-user markets are projected forward (typically 2009-2014) based upon historic growth, technology and market trends, and primary research from the market place.
• Variance Factorization : Consolidation of projected end-user market data to yield derived primary market data. The data is adjusted to the historic variance determinations, as above. The resulting data is further verified by confirmatory primary research.
• Confirmatory Primary Research : Resulting data is presented from companies or individuals participating as research partners. Variations from derived data are adjusted to reflect primary research based consensus.
• Electronically Based End-User Surveys: In addition to the methods describes above, electronically based end-user surveys are utilized. Surveys are distributed to a comprehensive panel of public and industry representatives within market segment(s) of interest. Statistical filtering and stratification is performed on the user-response data.

Table of Contents

PART 1: TRAILING 12 MONTH ANALYSIS (New!)

I. Rate of Entrants to the Cord Blood Banking Industry

II. Revenue Distinctions among Existing Cord Blood Banks

A. Flat-Line Growth Companies (< 3% per Year)

B. Substantive Revenue Growth Companies (17% or More Per Year)

III. Effect of New Entrants for Existing Competitors

PART 2: INDUSTRY OVERVIEW

I. Summary of Conditions

II. Background

• A. Fetal Cord Blood Characteristics
• B. Existing Treatments
• C. Future Applications

III. Cord Blood Banking Industry

• A. History
• B. Private vs. Public Cord Blood Banks
  • 1. U.S. Public Banks
    • a. Overview
    • b. Number of Public Banks
    • c. Geographic Distribution
  • 2. U.S. Private Banks
    • a. Overview
    • b. Number of U.S. Private Banks
    • c. Geographic Distribution
  • 3. Programs for Families with Medical Need
  • 4. International Banks
    • a. Overview
    • b. Number Private Cord Blood Banks by International Region

IV. Market Characterization

• A. List of U.S. Private Cord Blood Banks
• B. List of U.S. Public Cord Blood Banks
• C. U.S. Mail-In Donation Cord Blood Banks
• D. Breakdown of Canadian Cord Blood Banks - Public vs. Private / AABB Accredited vs. Non-Accredited
• E. International Cord Blood Banks
  • 1. Mexican
  • 2. South/Central America
  • 3. UK
  • 4. Europe
  • 5. Middle East
  • 6. India
  • 7. Asia
  • 8. Australia / New Zealand
  • 9. Africa
• F. List of International Public Cord Blood Banks (Alphabetical by Country)
• G. Worldwide List of AABB Accredited Cord Blood Facilities

V. U.S. Cord Blood Banking Legislation

• A. U.S. State
• B. U.S. Federal
  • 1. Institute of Medicine Recommendations Study
  • 2. Presidential Executive Order Expanding Approved Stem Cell Lines in Ethically Responsible Ways
  • 3. The Stem Cell Therapeutic and Research Act of 2005

VI. International Analysis - Trends, Policies and Industry Conditions, by Country

• A. NORTH & SOUTH AMERICA
• B. ASIA
• C. INDIA
• D. AUSTRALIA & NEW ZEALAND
• E. EUROPE

VII. Cost Analysis: Cord Blood Banking

• A. Reasons for Variation in Cord Blood Pricing
  • 1. Pricing Flexibility
  • 2. Variable Services
  • 3. Fee Breakdown Differences
• B. Range of Pricing for U.S. Cord Blood Companies (1-100th percentiles)
  • 1. U.S. Cord Blood Banking Price Range (1-100th%)
  • 2. Lowest U.S. Pricing
  • 3. Highest U.S. Pricing
  • 4. Average U.S. Cord Blood Costs (25-75th percentiles)
  • 5. Median Cost of U.S. Storage (50% percentile)
• C. Range of Pricing for Canadian Cord Blood Companies (1-100th percentiles)
  • 1. Canadian Cord Blood Banking Price Range (1-100th%)
  • 2. Lowest Canadian Pricing
  • 3. Highest Canadian. Pricing
  • 4. Average Canadian. Cord Blood Costs (25-75th percentiles)
  • 5. Median Cost of Canadian Storage (50% percentile)

VIII. Comparative Analysis of Quality Variables

• A. Technical Variables
  • 1. Vapor-Phase Storage vs. Liquid-Phase Storage
  • 2. Cryo-bags vs. Cryo-vials
  • 3. Pentastarch vs. Hetastarch
  • 4. Computer Controlled vs. Manual Rate Freezing
  • 5. Whole Sample vs. Volume Reduction
  • 6. High-Control vs. Low-Control Aseptic Processing
• B. Corporate Variables
  • 1. Corporate Stability
  • 2. Scientific Expertise

PART 3: EXPECTANT PARENTS, SURVEY RESULTS & FINDINGS

I. Survey Overview

• A. Survey Population
• B. Characterization of Market Survey Respondents
  • 1. Geographic Distribution of Market Survey Respondents
  • 2. Household Income Distribution of Survey Respondents
    • a. All Respondents
    • b. U.S. Respondents
  • 3. Respondent Breakdown by Race
  • 4. Respondent Breakdown by Gender
  • 5. Respondent Breakdown by Level of Education
  • 6. Respondent Breakdown by Location (City vs. Suburban vs. Rural)
  • 7. Regional Breakdown of U.S. Respondents
  • 8. Demographic Conclusions

II. Rates of Awareness: Unaware / Minimally Informed / Moderately Informed / Knowledgeable

• A. Overall
• B. By Gender
• C. By Household Income
  • 1. All Respondents
  • 2. U.S. Respondents
• D. By Education
• E. By Race
• F. By Geographic Location
  • 1. Region within U.S.
  • 2. Location (City vs. Suburban vs. Rural)
• G. By Number of Existing Children within Family (e.g. Birth Order)

III. Factors Influencing Awareness

• A. Personal Exposure: Relative Impact of Family, Co-Workers, Peers
• B. Informational Sources: Information Sites, Books Medical Pamphlets, Government Sources
• C. Medical Exposure: General Doctors, Ob / Gyn, Midwifes, Nurse, Other
• D. Promotional Sources: Internet Advertisements, Print Advertisements, Radio, TV, Other

IV. Factors Influencing Parental Decision-Making

• A. Factors Influencing the Decision Not to Store Cord Blood
  • 1. Knowledge Level
  • 2. Price Sensitivity
  • 3. Safety Concerns
  • 4. Lack of Access
  • 5. Misconceptions
• B. Factors Influencing the Decision for Private vs. Public Storage of Cord Blood
  • 1. Ethical Beliefs
  • 2. Gender
  • 3. Total Household Income
  • 4. Level of Education (Highest Level Achieved by at Least One Parent)
  • 5. Race
  • 6. Geographic Location
    • a. Region within U.S.
    • b. City vs. Suburban vs. Rural
  • 7. Access to Reliable Healthcare
  • 8. Number of Existing Children within Family (Birth Order)
  • 9. Source of Knowledge
  • 10. Perceived Support of Medical Staff
  • 11. Family Medical History
• C. International Analysis of Cord Blood Banking Perceptions (Region-by-Region)

V. Parental Responsiveness to Health Statistics

• A. Overview
• B. Health Statistics
• C. Health Statistic Conclusions

VI. Parental Expectations

• A. Quality of Services
• B. Willingness to Educate/Inform
• C. Reputability of Organization

VII. Trends

• A. Rates of Cord Blood Storage (units per year)
• B. Rates of Parental Awareness
• C. Cord Blood Research Publication Rates
• D. Cord Blood Research Funding Levels
• E. Cord Blood Patent Breakdown
• F. Rates of Cord Blood Research Product Development

VIII. Informative Websites: Online Sources Utilized by Expectant Parents

• A. Overview of Websites
  • 1. Information Only
  • 2. Commercial Affiliation
• B. Dominant Regional Websites (International Analysis)
• C. Most Important Criteria Used to Identify Sites to Inform Decision-Making
• D. Underlying Reasons for Visiting Online Resources

IX. Conclusions

• A. Traits of a “Model Customer”
  • 1. “Model Customer” for a Private Cord Blood Bank
  • 2. “Model Customer” for a Public Cord Blood Bank
• B. Ideal Price Range
• C. Approaches for Communicating with Expectant Parents

Press Release

Cord blood banking industry has expanded through double digit growth over the past 12 months

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