Signs of validation for investors in cord blood banking – the industry consolidation

cord blood stem cells private public banks consolidation industry investors

Diseases treated with cord blood stem cells have become more and more common nowadays. This is one of the reasons driving the cord blood market from $3.4 to a prospective growth of $14.9B in a span of five years. This is one sign of validation investors look for to invest in the cord blood banking industry.

If the cord blood banking industry is growing so rapidly, why are they merging?

Unlike cash-strapped biotechs bought out by bigger companies, cord blood banks are merging to shift into a hybrid public and private banking model. This is to attract parents who feel more comfortable with this structure. These merged banks, already lucrative on their own, become even more attractive to investors.

Last year, KKR invested $65 million into China Cord Blood Corporation allowing the company to start developing its research capacity and find new applications for stem cells. GTCR, another leading private equity company, invested in Cord Blood Registry in 2012. CBR is the biggest cord blood banking in the world.

What are other signs of validation attracting investors? Where are other cord blood banks heading in terms of shifting their business models?

Find out from CEOs of leading cord blood banks at the World Cord Blood Congress  2013 this September in Boston.

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