In recent times, the concept of cord banking has caught on with a lot of Indians. Here’s a look at what makes India such a lucrative destination for companies that facilitate cord banking.
You may have heard about umbilical cord banking, or read about it in tabloids where celebrities talk about storing their children’s umbilical cord blood cells, claiming it as an ‘investment for their child’s future’. One of the well-known Bollywood actresses, Raveena Tandon, recently opted for stem cell banking for her child. Leaving aside the glam quotient, India is fast emerging as a ‘cord banking hub’ as indicated by statistics.
Recent estimates suggest that in India, about 25,000 cord blood units have been banked in the past three years. This figure is poised to grow in the years to come because of three reasons: a) more and more cord banking companies are planning to join the fray; b) more Indians are now aware of this facility and are keen on ensuring their child’s lifelong health; and c) the process of cord banking has been granted regulatory approval.
Destination India!
With 80,000 babies being born per day (that’s 26 million births a year), India is on the brink of being the largest source for umbilical cord blood in the world. Not surprisingly, all the leading companies across the world are keeping a close watch on the Indian shores.
Money Matters
The investments are considerable and mostly run into millions of dollars. Analysts estimate that an Indian stem cell bank, which is currently at Rs. 100 crore, would generate Rs. 2,700 crore in revenues by 2012, accounting for 17% of the world market. Most of the companies are already established names in the world map. Backed by a strong foreign funding they have plans to capture at least 21% of the total market share, according to the trade pundits.
The Market Players
As of now, there are around six main players in this five year old market. Many of the established cord blood banking companies here have an overseas parent company responsible for the initial investment. In India, the leading private players in cord blood banking include Reliance Life Sciences, Lifecell International, Cryobanks International India, Cryo Stemcell Karnataka, Cordlife Sciences, and Cryo-Save India.
In the public sector, Jeevan Stem Cell Blood Bank exists as a not-for-profit stem cell bank, making its nominal presence felt. Lifecell, is slated as the first as well as the biggest entrant in cord blood banking. It entered in India through a technological tie-up with US-based Cryo-Cell International (CCI). A new entrant in this market is Singapore-based firm Cordlife Limited. It plans to have a pan-India presence, with investment plans of Rs. 300 million in the next 18-24 months. Another European stem cell banking company, Cryo-Save launched its operation in India in December 2008. The company has set 10 stem cell storage banks in the country at a cost of Rs. 10 million.
The Cost Factor
Of the 26 million births per year, almost 600,000 are prospective customers, considering the pricing of around Rs. 79,000 per umbilical cord banked for 21 years. However, with so many companies entering the space, the prices have become very competitive, with companies slashing the prices by almost 50% of the initial cost, forcing other companies to follow suit. There are many companies who have started offering EMIs to facilitate easier payment options for banking. For instance, Lifecell runs two payment schemes. In the 'Baby Cord' plan, parents can bank the stem cells for 21 years at the rate of Rs 3,500 EMI for 2 years. Other options include one-time storage fee of Rs 79,000 or initial processing fee of Rs 44,600 with an annual storage fee of Rs 3,500.
The Future is here
The concept of stem cell banking in India is here to stay with around 85 diseases that can be cured or mitigated through stem cells. Also, government of India is taking concrete steps in positive direction. The Department of Biotechnology (DBT) is all set to create 35 ‘Centers of Excellence’ to augment research in adult and embryonic stem cells. Another boost to this industry is bound to happen when the proposed guidelines by the Indian Council of Medical Research (ICMR) for stem cell research and therapy, shall be legislated. Plans are on in the Union Health Ministry to regulate this sector.
Summing up, the economic rise in the educative middle population and the deeper penetration of internet will result in increased awareness levels amongst the masses about this concept, and a strong legalized. That being said, a less commercialized atmosphere will positively make stem cell banking an integral part of Indian healthcare.
Chillibreeze's disclaimer: This is a contributed article and was published on Chillibreeze in March, 2010. The views and opinions expressed in this article are those of the author(s) and do not reflect the views of Chillibreeze as a company. Chillibreeze has a strict anti-plagiarism policy. Please contact us to report any copyright issues related to this article. The relevance of the facts and figures cited (if any) could change after a period of time.
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—About our writer:
Nancy has a graduate degree in Microbiology and Environmental Sciences and a masters degree in Journalism from Mumbai University. She has been in the media industry for five years, with rich experience in broadcasting and printing. She has worked with Sahara Group and CNBC-TV-18. She is currently working with the Indian Express Group as a 'features correspondent' forte being healthcare, business, HR and technical writing (medical).
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