Cord Blood Banking: Stem cell banks see a boom year ahead

Stem cell banks, the businesses that store special growth cells of a newborn's umbilical cord, are bracing themselves for a boom year in the country.

They peg this to the increases they each saw in the number of parents who banked their babies' cells during 2010. Three of the top five banks registered a growth of between 50 per cent and 300 per cent.

Of the key players in the country, Cryo-Save India said it was increasing its sales and marketing efforts; LifeCell of Chennai would spread out to small cities while Kolkata’s Cordlife mulled incentives for new clients.

"There is a spurt in cord blood banking," said Mr Rajesh Sharma, Managing Director, Cryo-Save. As in 2010, he expected 100 per cent jump for the industry in 2011 also.

The Netherlands-based Cryo-Save has deployed 200 of its global sales force of 300 here. "The number doubled since 2008. We may add some more this year," Mr Sharma told Business Line.

Mr Mayur Abhaya, Executive Director, LifeCell International, Chennai, said the industry was growing by 50 per cent each year since 2008.

"India is the world’s largest birthing country and expectations are high." Only 0.16 per cent or 30,000 of babies born in India have their cells stored compared with 5 per cent in the US and 1 per cent in Europe.

Mr Abhaya said this would change because of aggressive marketing and increasing prosperity. "Over the next five years the penetration rates could go beyond 1 per cent, or a ten-fold growth."

LifeCell, which bagged a few celebrity parents including Hritik and Suzzane Roshan, would add 15 centres to the existing 70.

Asia-Pacific player Cordlife Sciences entered the country in 2008 and yet has notched up 300 per cent growth, said Mr Meghnath Roy Chowdhury, Managing Director. It plans to expand across 40 locations including small cities with a Rs 35-crore investment.

Storing cord blood cells for 18-21 years costs around Rs 70,000-80,000. They can be used to treat diseases either for the same person or for a relative or person with a matching cell profile. Stem cell banking will become significantly more affordable, said Mr Abhaya, whose company introduced a trend-setting EMI scheme during the economic lows.

Mr Chowdhury said tie-ups with special offers were in the offing with companies that have a marriageable employee profile.

Fuelling these banks is the global research in stem cell therapies. Its supporters say stem cells can cure 85 per cent of all diseases where no cure existed, from leukaemia and Parkinson's disease to blindness and many modern malaises. Manipal group's Stempeutics and Reliance Life Sciences are among domestic R&D leaders.

Mr Sharma noted that in five years, 15 banks had come up and five agencies had cornered 90 per cent of the Rs 210-crore business.

COMMENT NOW