Strategy
The Group’s strategy is to develop into new geographic markets, either by acquisition or in conjunction with a minority partner, while also building on the Group’s 50% European market share through effective marketing and through its new services.
Developing existing markets
Due to the nascent state of the industry, the Directors believe that there is still a great amount of potential in the European markets in which the Group is already operating and the Group will continue to develop its position in these existing markets.
Geographic growth into new markets
European markets — the Group is well placed to take advantage of the opportunities presented by changes in legislation in the larger European countries where private stem cell storage is contemplated but currently prohibited, for instance France. The management expect legislative change to open these markets to private storage companies in the short to medium term.
Emerging markets — such as India, Russia, Turkey and South East Asia, where stem cell storage is still a comparatively unknown process are being targeted by the Group. The Group expects to enter these markets using local partners and consequently without incurring significant start up cost (which is consistent with the Group’s strategy since its inception).
Growth by acquisition
Acquisition of subsidiaries and business partners — the Group is looking to acquire a number of its business partners and existing distributorships where it is not a 100% owner. Management believe that the centralisation of costs and controls should improve profitability in the short to medium term.
Acquisition of non-Group businesses — the Directors believe that the stem cell industry will continue to be fragmented in the short to medium term. The Group believes that there will be, therefore, opportunities for strategic acquisitions as the industry grows and management will be seeking to find value creating acquisitions as appropriate.
Development of new products
In the second half of 2009 Cryo-Save succesfully rolled out the new combined service of storing stem cells from the umbilical cord blood as well as the cord tissue in several European countries. Furthermore, in the First half of 2010 Cryo-Save also introduced the new Cryo-Lip service and the Directors believe it will offer significant potential markets in the future.
The Directors are investigating the (potential) application of cryopreservation to other services and processes by expanding our crypreservation know-how and facilities. This might result in the introduction of new services in the mid term.
Other services, including the construction of tissues for both drug development and therapeutic usem will continue to be developed, assessed and launched in line with our proven research and development policy.
