Chief Digital Officer, HealthBanks Biotech, Inc.
getty
Cord blood banking is the storage of a baby's cord blood immediately after birth. After collection, cord blood is frozen and can be stored for many years without degradation. In case, this cord blood can be used to treat several medical conditions and save lives.
The cord blood banking industry is estimated to grow to just over $45 billion by 2026 – up from just under $18 billion in 2020. Part of this growth is explained by the plethora of research into treating a myriad of conditions. For business development leaders in the healthcare space, it's important to understand where the research currently stands and the business models that support cord blood banking services to make the most of research outcomes.
Cord Blood And Future Applications
Scientists are conducting clinical trials on cord blood-derived stem cells to find new treatments for immune diseases, muscles disorders and neurological disorders. These include Autism, for which a recent paper from U.S. researchers showed children in the study showed significant improvement after 12 and 24 weeks of cord blood infusion. A pilot study tested the use of autologous umbilical cord blood (AUCB) transfusion to replace postoperative blood loss in 10 neonates undergoing cardiac surgery finding the replacement safe and effective.
Diabetes, specifically type 1 diabetes mellitus, is an autoimmune illness impacting the production of insulin. In a pilot study, cord blood transfusion is given to patients recently diagnosed with TIDM and preserved cord blood. Initial findings indicated that cord blood transfusion is safe and beneficial in slowing the loss of insulin synthesis in children with T1DM.
Even brain injuries in newborns are considered for treatment from cord blood. Umbilical cord blood transplantation for severe intraventricular hemorrhage in preterm babies was shown to be safe and effective in phase I clinical study. Another phase I safety study produced results showing that a single dose of cord blood cells improved neurological and functional symptoms of stroke patients.
These are just a few of the efforts on the behalf of research teams working to make the most of cord blood. Other efforts include treatment for Alzheimer's, Parkinson's, cartilage defects, eye diseases and even Covid-19.
The Growth Of Cord Blood Banking
The cord blood banking industry in the past has been focused on public and private cord blood banking. Public cord blood banking enables individuals to donate cord blood for free and provide access for other people to use. However, public cord blood banks rely heavily on Federal funding to support their operations. They typically only collect revenue in the backend if the stored cord blood has a matching and use request. Hence many public cord blood banks are now exploring alternatives and seeking to offer a hybrid of public and private cord blood banking services.
As for private cord blood banks, due to the heavy competition, many cord blood banks are forced to cut their cord blood banking price in order to remain competitive. This cost-cutting and reduction of operating profit margin activities are forcing private cord blood banking companies to look for alternative revenue sources. Many private cord blood banks are expanding their service portfolios that are complementary to their customer base. For example, the launch of adult immune cell banking by the company where I serve as chief digital officer, HealthBanks. Another example is the placenta preservation services by Lifebank. In addition to these adjacent services, some banks are also looking to offer upstream and downstream services, including egg and sperm donation and storage services, genetic testing services for newborns and even Covid-19 testing services — especially during the height of the Covid-19 pandemic.
Is Cord Blood Banking Worth It?
Over the years, cord blood banking has met new market challenges while working to fulfill new uses as scientific research advances the use of cord blood. While cost and benefits continue to weigh on potential consumers of banking services, the future is bright and the subsector of healthcare is likely to remain as research into cord blood uses continues.
Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
