Its definately shaping up that there will be additional news by 1/11.
I tend to think it will be more in the diversification of revenue area- including contract for cord storage in the DoR category.
CEO actions and statments over the last several months suggest the relationship will have a government component.
Earlier this year CEO stated the US private cord storage market is depressed. I do not see anything that has indicated this has changed.
Circa 1968 stems were first utilized derieved from bone marrow. A cumbersum, painful and expensive process.
Overtime 20 years later, and largly due to advncement in technologies it was discovered that stems exist in the body in a myriad of different places.
The two easiest ways to obtain and extract them is thru the cord and placenta. With the cord being the easier of the two. The placenta holding more of the stems.
There have been enough implementation results to indicate stems are a viable medical therapy. This understanding has come into medicine (and continues to evolve) over the past 10 years. Hence the rush into the banking industry.
In that past 10 years it has been discovered that the harvesting process is more expensive and nuanced that originally thought. Its not just cut the cord and throw it into a freezer. Its somewhat more complicated and expensive than that. Hence consolidation, which is going on today.
As the cord is outside the body and the stems the easiest to harvest, the industry has grown around this product. This is not to say this product is the best quality or most plentiful source. Its just the easiest to obtain.
There is no indication that the stem industry will be centered ultimately around cord stems. I hazard to guess it wont be. But will definately be a source of them.
The CEO last week reminded us that he does not see CBAI as a primarly private cord blood banking compnay over the next ten years(see his last statment in the radio interview).
For the CEO of CORD BLOOD America to make such a statment IMO means there is something he is doing that he is not telling us. probably because he cant. Rest assurd CBAI is about to enter into a whole new business. Related to, but not private cord blood banking. My previous post was to illustrate the probalble expected US private cord blood organic growth over the next five years, being very conservative in that assessment.
IMO the near and midterm CEO is looking for the most bang for his buck, as his bucks are limited. This is clearly in the area of a commercial contract.
CBAI has affiliated itsself with AHIP- an insurance industry lobby. Dont be fooled AHIP works to cut cost for insurance not add to their cost. IMO is highly likely CBAI has paid for this affiliation, and it is not an exclusive affiliation. It should not go unnoticed CBAI has chosen to affilate with an insurance lobby rather than a healthcare lobby. Its an indication healthcare is on board with stems, insurance is not. CBAI real opprotunity with AHIP is a springboard for educating insurance that it is more cost effective to store upfront than search for a match later. This relationship is for benefits for the long term.
IMO the industry is going to move towards Individualization the same as medicine in general is moving towards. The only way insurance will come on board is if they have a gurantee that what they pay for will give them ther greatest cost effective flexibility. The key to the industry is the match data base. The incredible volume of cords about to be processed will definately need a suprior match data base. I believe the DNA testing kit is going to become a much larger product line than it appears today.
What is better? For an individual to be already in the match data base in case an illness arises where matches can be identified as new stem are processed. Or for a search to be conducted at the time of need? What would be more cost effective and effiecent?
Uncle Jimmy gets Leukimia. Is it better for Uncle Jimmies profile to already be on file and say matched to 3 stem sources. Or for Uncle Jimmy to get cancer and to try and find a match before he loses the battle? This understanding will take a public awakeing thru education, a long term process.
In the meantime, over the next 5 years, CEO is going to move us in the direction of bulk processing and storage, in strategic locations throughout the world. Catering to the storage needs of a whole myriad of clients, both individual and commercial. With the emphasis on the latter.
Most individuals worry about living once they get sick. The insurance companies think about the cost of living once the individual gets sick.
Its up to CBAI to convince both that its is better to think about it before the individual gets sick.
Whats the battle-- private v public - whats the solution - individualization. Who pays? Both. Where does CBAI come in? Their the Candy Factory.
AIMHO GLTY
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