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Invest in Cord Blood Banking

The blood in the placenta and umbilical cord of a newborn baby contains important stem cells, stem cells that can be lifesaving later in life. The reason for this is because stem cells in cord blood, unlike the stem cells in bone marrow, are less likely to be rejected in the case of a blood transfusion. Unfortunately, there usually isn’t an ample supply of cord blood stored away at any given moment.

To remedy this, blood banks were created.

The process involves extracting the blood from the placenta and umbilical cord (the umbilical cord tissue can be extracted as well for its own benefits) after the babies’ birth, transporting the blood to the blood bank, and then cryopreserving the cord blood for future use.

The Cord Blood Banking Industry

The cord blood banking industry has a prominent presence in Asia, but still has some traction to gain in both North America and Europe as a period of rapid growth in the 2000’s has led to concentration within the industry. One of the major drivers for the interest in cord blood banking was the enthusiasm to utilize stem cells in the umbilical cord. This is what originally garnered attention for cord blood banking from the investment community in the 2000’s. Yet as demand in the cord blood banking industry rose significantly, this demand eventually plateaued in the 2010’s, when the pharma giants that bought cord blood banking businesses began to sell those companies off.

If the concept of cord blood banking can become popular in western society perhaps the industry can finally live up to its potential. And even with the lack of serious interest in the western hemisphere, the cord blood banking industry has seen its fair share of action.

Major Developments

  • In early 2018, one of the largest cord blood banking companies in the world, Cord Blood Registry or CBR, was acquired by private equity group GI partners in an all-cash deal worth $530 million. CBR presently stores samples of over 600,000 children and was originally acquired by AMAG pharmaceuticals a few years prior who sold CBR off to focus exclusively on pharmaceuticals
  • Newborn screening company, PerkinElmer (NYSE: PKI), entered the industry when they purchased cord blood bank, Viacord, for $300 million in the late 2000’s. Although the revenue generated by Viacord is minimal, the fact that PerkinElmer saw an opportunity in the space was noticeable
  • The cord blood banking industry is receiving newfound interest as a new technology, named Toticyte, can deliver 3x more stem cells than the traditional way of processing cord blood. The patented technology is exclusive to Cells4life, a cord blood bank based in the United Kingdom

The Future

It is predicted that the cord blood banking market will be worth $8 billion by 2025.

Although Asia is the clear leader in cord blood banking, there is for growth in other parts of the world. For example, roughly 4 million babies are born each year in the US alone. With Cord Blood Registry charging a fee of $150 annually for cord blood storage, on top of a $2,200 one-time cost, even with grabbing 25% of this market the company could be looking at close to $2.5 billion in annual revenue.

Though potential exists for this industry, creating awareness would be the reasonable first step.

Cord Blood Banking Stocks

Industry: Medical Care Facilities

Sector: Healthcare

Website: http://www.cryo-cell.com

Description: Cryo-Cell International, Inc. engages in the cellular processing and cryogenic cellular storage with a focus on the collection and preservation of umbilical cord blood stem cells for family use. It provides cord tissue service that stores a section of the umbilical cord tissue, a source of mesenchymal stem cells that are used in regenerative medicine to treat a range of conditions, including heart, kidney, ALS, wound healing, and auto-immune diseases. The company also manufactures and sells PrepaCyte CB processing system, a technology used to process umbilical cord blood stem cells. It stores approximately 500,000 cord blood and cord tissue stem cells worldwide. The company markets its cord blood stem cell preservation services directly to expectant parents, as well as by distributing information through obstetricians, pediatricians, childbirth educators, certified nurse-midwives, and other related healthcare professionals. Cryo-Cell International, Inc. was founded in 1989 and is headquartered in Oldsmar, Florida.

Fundamentals
Market cap$73.06M
P/E ratio21.44
Earnings per share$0.45
Return on equity0.00%
Profit margin11.64%
Total revenue$31.15M
Debt / Equity
Price / Book
52 week high$11.00
52 week low$4.52
Shares outstanding$7.57M
Previous close$9.35
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: Diagnostics & Research

Sector: Healthcare

Website: http://www.globalcordbloodcorp.com

Description: Global Cord Blood Corporation, together with its subsidiaries, provides umbilical cord blood storage and ancillary services in the People’s Republic of China. The company offers cord blood testing, processing, and storage services under the direction of subscribers; and tests, processes, and stores donated cord blood, as well as provides matching services. As of March 31, 2020, it had three operating cord blood banks in the Beijing municipality; one in the Guangdong province; and one in the Zhejiang province. The company was formerly known as China Cord Blood Corporation and changed its name to Global Cord Blood Corporation in March 2018. Global Cord Blood Corporation is based in Central, Hong Kong. Global Cord Blood Corporation is a subsidiary of Nanjing Ying Peng Hui Kang Medical Industry Investment Partnership (Limited Partnership).

Fundamentals
Market cap$553.06M
P/E ratio7.61
Earnings per share$0.60
Return on equity12.05%
Profit margin41.27%
Total revenue$176.12M
Debt / Equity0.08
Price / Book0.85
52 week high$4.98
52 week low$2.54
Shares outstanding$121.55M
Previous close$4.46
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: Diagnostics & Research

Sector: Healthcare

Website: http://www.perkinelmer.com

Description: PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, life sciences, and applied services markets worldwide. The company operates in two segments, Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment offers a suite of solutions, including reagents, informatics, and detection and imaging technologies that enable scientists to enhance research breakthroughs in the life sciences research market, as well as laboratory services. It also provides analytical technologies, solutions, and services for the environmental, food, and industrial markets that enable its customers to understand the characterization and health of various aspects, including air, water, and soil. In addition, this segment offers solutions to farmers and food producers; and analytical instrumentation for the industrial market, which includes the chemical, semiconductor and electronics, energy, lubricant, petrochemical, and polymer industries. The Diagnostics segment provides instruments, reagents, and software products for the early detection of genetic disorders, such as pregnancy and early childhood, as well as infectious disease testing in the diagnostics market. Its products are used for testing and screening genetic abnormalities, disorders, and diseases, including down syndrome, hypothyroidism, muscular dystrophym, infertility, and various metabolic conditions. This segment also develops technologies that enable and support genomic workflows using protein coupled receptor and next-generation DNA sequencing for applications in oncology and drug discovery. The company serves pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies. PerkinElmer, Inc. was founded in 1937 and is headquartered in Waltham, Massachusetts.

Fundamentals
Market cap$14.76B
P/E ratio20.28
Earnings per share$6.50
Return on equity22.23%
Profit margin19.24%
Total revenue$3.78B
Debt / Equity59.41
Price / Book3.95
52 week high$162.70
52 week low$75.70
Shares outstanding$112.06M
Previous close$130.18
Dividend Analysis
Dividend yield0.22%
Payout ratio4.31%
Trailing Annual Dividend Rate$0.28
Five Year Avg Dividend Yield0.36%
Ex-Dividend dateApril 14, 2021 7:00 PM

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