Although stem cell banks are mushrooming across the country, penetration levels for the industry in India is currently as low as 0.1% of births per year against 4% in developed nations. Nevertheless, with forthcoming regulatory changes, and focus on awareness, Cryo-Save Group, one of Europe?s largest stem cell banks expects this story to change in the near future. Arnoud Van Tulder, global chief executive officer of the group tells Shreya Roy about the changes likely in the industry and about the company?s vision for India
Stem cell banking is yet to pick up in India as it has in the US and European countries. What is the potential that you see in this market?
We have invested over 2 million euros in our Indian operations since our inception in late 2008, which speaks about the potential we see. When we started, there were about two other private stem cell banks in the country. That number has gone up to 15 over the past year.
What is the kind of response you have seen from the general public? Has India has opened up to the idea of stem cell preservation?
The Indian market is very nascent. It really started about five years back and awareness started building in the past two years. Awareness is still very low. In the US, storage penetration is around 4% of total births per year; in Europe, it is slightly over 1%, In India, it is about 0.1%. Fifteen stem cell banks together share about 16,000 samples per year and in total, about 40,000 samples are stored in India.
What kind of numbers are you expecting over the next few years?
It is difficult to forecast. But I would say that within the middleclass and higher, about 4% of births a year is possible within the next few years in India. But it will take time. For us as a company, we see that the main cities in India in terms of size are comparable to main cities in Europe. We save about 27,000 lives per year in Europe. I would say that this is achievable in India over the next few years.
What is deterring the industry and the awareness process?
One is support by health insurance companies. In India, no non-life based insurance can be for a period of beyond one year. Storage is a matter of 21 years. The regulation therefore becomes a deterrent in the case of insurance coverage. The issue with awareness?more than the general public?is with doctors and gynecologists, who are a little cautious and reluctant to inform parents. We are trying to inform and educate gynecologists so that they can at least be neutral on the process, and give objective information to expectant parents.
In the US, several states mandate doctors to inform expecting parents about stem cell banking. This is being discussed in European countries as well. Is the industry in India engaged in any dialogue with regulators to bring about such regulations?
The health ministry has presented the Bill for the regulation of the stem cell industry in Parliament. In India, the licences are covered by blood bank regulations. They are now trying to bring in a specific chord blood regulation and these will bring about changes in procedures followed by labs. This Bill probably does not seek to bring in mandatory information. Such discussions may happen in Asia and India in two to three years time.