In major news released today, Human Longevity, Inc. (HLI) announced that is is acquiring LifebankUSA, a cord blood, placental blood, and tissue bank owned by Celgene Cellular Therapeutics.
Based in San Diego, CA, Human Longevity, Inc. is an innovative company that specializes in the use of whole genome sequence analysis, clinical imaging, and machine learning to extend health across a longer human lifespan. LifebankUSA, based in Cedar Knolls, NJ, is the “the only company that offers cord blood, placenta blood and tissue banking – and the first to release placenta-derived stem cells for a successful transplant.” Celgene Cellular Therapeutics (CCT), the parent company of LifeBankUSA, specializes in cell therapy and regenerative medicine products, using LifeBankUSA to source its cell therapy, organ and tissue products, several of which are now being explored in clinical trials (PDA001, PDA002, and others).
The move will position Human Longevity, Inc. to offers its newborn genome sequencing product in combination to its newly acquired stem cell banking services.
The strategy is intelligent and extremely reminiscent of two past acquisitions of cord blood banks, which were the acquisition of Cord Blood Registry (CBR) by AMAG Pharmaceuticals and the acquisition of ViaCord by PerkinElmer. In both cases, AMAG Pharmaceuticals and PerkinElmer wanted access to the the market and the client base that the cord blood bank possessed.
More specifically, the largest cord blood bank within the United States, Cord Blood Registry (CBR), was acquired by AMAG Pharmaceuticals in June 2015 for $700 million. The purchase valued Cord Blood Registry at over 5.55 times revenue and over 15.55 times EBITDA. The acquisition of CBR was a strategic move by AMAG Pharmaceuticals to bolster its portfolio of existing maternal health products, because CBR possessed an established network of digital and social networks through which to communicate with pregnant women. It also had a skilled sales team with connections to obstetricians, hospitals, and labor units throughout the United States. These networks gave AMAG Pharmaceuticals substantially expanded reach into prenatal and maternal health markets.
The second largest cord blood bank within the United States, ViaCord, was acquired by PerkinElmer, Inc., in October of 2007 for $300 million. More specifically, PerkinElmer bought ViaCell, Inc., a company focused on the development of new therapies from stem cells, and the acquisition included the blood banking division of the company, ViaCord. Interestingly, ViaCell was acquired by PerkinElmer for the same multiple of 5.55 times revenue that AMAG Pharmaceuticals paid for Cord Blood Registry.
Once again, PerkinElmer acquired ViaCord to access its markets, stating in its press release that the “acquisition expands PerkinElmer’s offerings and reach in the neonatal, prenatal and maternal health markets” and ViaCord clients will now “have access to a wider range of neonatal, prenatal and maternal health solutions from PerkinElmer.”
Clearly, companies targeting neonatal, prenatal and maternal health markets are interested in cord blood banks for their stem cell banking services, as well as access to the market they represent.
To learn more about the recent acquisition of LifeBankUSA by Human Longevity, Inc. (HLI) view the press release issued today by HLI, titled “Human Longevity Inc. Advances Leadership Role in Newborn Genome Sequencing with Strategic Acquisition of Stem Cell Banking from Celgene Cellular Therapeutics.”
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