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Albany, NY -- (SBWIRE) -- 12/08/2015 -- The global cord blood banking industry has matured substantially over the past few years, creating both serious threats and novel opportunities. Serious threats to the industry include:
New accreditation requirements that have increased the cost structure of cord blood banks
A decline in cord blood transplants in 2013, within the U.S. and other geographical regions
Low rates of turnover for stored cord blood units
Expensive cord blood transplantation procedures, costing from $200-300K each
Difficulty with educating obstetricians about cellular therapies
Poor press coverage in many regions worldwide, including major news outlets
Other uncontrollable factors that could threaten the industry include: new legislation, changes in transplant reimbursement, continually evolving accreditation requirements, the potential for competitive approaches to be shown as more optimal, patent challenges for processing or transplant technologies, changes in public perception of private vs. public banking, shift in policy recommendations by influential medical organizations, and changes in government support.
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Marketing pressures are also impacting the industry, with the term "cord blood" becoming one of the 20 most expensive search terms on Google, reaching more than $20 per click for global search traffic and close to $40 per click for U.S. search traffic.
However, there are also emerging opportunities, including:
The potential to expand market size through increasing public awareness
New clinical trial data supporting applications for hematopoietic stem cells (HSCs) from cord blood and mesenchymal stem cells (MSCs) from cord tissue
Improving public perception toward stem cell therapies
Substantial deal-making within the industry, including mergers, acquisitions, and funding rounds
The potential for cross-organizational collaboration through formation of Cord Blood Industry Associations (occurring in within U.S. and South America)
A trend toward diversification within the industry, with cord blood banks effectively becoming stem cell banks through the storage of cord blood, cord tissue, and in some cases, placental tissue, amniotic fluid, and more
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In 2008, a Taiwanese company, HealthBanks Biotech Company Ltd. became the first company to offer cord tissue storage; it was not until July 2010 that the first private U.S. cord blood bank began offering the service (Cord Blood Registry). Since then, the trend of cord tissue storage has had a significant impact on the cord blood banking industry, with a large percentage of cord blood banks worldwide offering the service.
In China, the government shocked the cord blood industry worldwide when it announced that only one cord blood bank would be allowed to operate within each province, and official government support, authorization, and permits would be required. While the China Cord Blood Corporation has since earned permits for three of the seven Chinese provinces (holding majority share of the Chinese cord blood market) and is now competing as one of the fastest growing cord blood banks in the world, several other providers of cord blood services disappeared when this legislation was passed.
In Italy and France, it is illegal to privately store one's cord blood, which has fully eliminated the potential for a private market to exist within the region.
In Ecuador, the government is now creating the first public cord blood bank and has instituted laws such that private cord blood banks cannot approach women about private cord blood banking options during the first six months of pregnancy. This has created a crisis for the private banks, and there are now only two remaining in Ecuador.
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Key Report Findings:
The report is designed to guide the decision-making of cord blood banks worldwide, as well as to advise private, corporate, and institutional investors entering into this market.
As such, it considers a range of metrics that impact the global cord blood banking market. It includes trend rate data for cord blood clinical trials, patents, grants, scientific publications and more. For instance, there are now more than 500 studies involving cord blood listed on www.ClinicalTrials.gov, and there have been hundreds of patents related to cord blood collection, processing, and storage filed through the United States Patent and Trademark Office (www.USPTO.gov). Globally, this patent count is even larger.
Additionally, the year-over-year increase in scientific publications on PubMed.gov containing the term "cord blood" increased by 7.8% from 2013 to 2014. PubMed.gov is a global database of scientific publications containing more than 24 million citations for biomedical literature, which makes it an excellent resource for gauging biomedical research trends. However, grant rate data reveals that funding for cord blood related research has been declining from 2012 to present.
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