Competition from public banks has been restraining industry revenue growth
Los Angeles, CA (PRWEB) April 10, 2012
The storage of stem cells, usually in the form of cord blood, is a growing industry. During the five years to 2012, revenue is expected to increase 7.3% annually on average to $435.0 million. According to IBISWorld industry analyst Sophia Snyder, the Human Stem Cell Banks industry’s success has been fostered by developments in medical stem-cell applications, which have been progressing at a quick pace. Still, banks that preserve stems cells have been challenged by opponents who claim that the storage process may render the cells useless when they are ultimately needed. And some healthcare professionals, including the American Academy of Pediatrics, argue that storing a person's cells privately is less beneficial than donating to a public bank.
Competition from public banks has been increasing during the past five years because of the argument that public banks can help the greater population by increasing access to stem cells for medical treatment. Public banks are also substantially less costly for individuals. “The high cost of storing stem cells in private banks has been a prohibitive factor for many consumers,” Snyder says, “particularly during the economic recession.” As a result of falling consumer sentiment, industry revenue declined in 2009, but stem cell banks have been making a strong recovery since. Growth is expected to reach a record high in 2012, bolstered by the improving economic environment, further advances in stem-cell applications and a favorable regulatory environment. The Human Stem Cell Banks industry includes well-known companies such as Cord Blood Registry Systems, Cryo-Cell, PerkinElmer (which operates through ViaCord) and Celgene Corporation (which operates through Lifebank USA). These companies have historically dominated the industry and, thus, benefit from significant brand-name recognition and partnerships with medical research facilities and suppliers.
Stem cell banking is forecast to expand at an accelerating rate over the next five years. Progress in stem-cell therapies will gain in prominence in the public mind, making the practice of banking stem cells more widespread. Individuals will also be in a better position to pay for industry services as the economic environment continues to recover. The strong growth of stem-cell banks will entice more entrants into the industry, thereby pressuring operating profit margin down slightly as companies compete on the basis of price. In an effort to reduce costs, employment in the industry is forecast to decline. At the same time, competition from public stem-cell banks is forecast to heighten. Public banks will benefit from the effects of healthcare reform that encourage preventative medicine and greater access to healthcare for all individuals. For more information, visit IBISWorld’s Human Stem Cell Banks in the US industry report page.
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IBISWorld industry Report Key Topics
Human stem cell banks collect, test, preserve and deliver stem cells from donors either for preparation of cell lines for use in research, or for future use through banking umbilical cord blood. Stem cells are cells (the functional basic unit of life) that have the potential to differentiate into a variety of tissue. This industry excludes public stem cell banks and companies that primarily research, develop and manufacture therapeutic products using stem cells.
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