CryoCell

About CryoCell

Cryo-Cell International operates as a cord blood bank, focusing on the cryopreservation of hematopoietic stem cells (HSCs) derived from umbilical cord blood and tissue. Established in 1989 by Dan Richard, the company was the first private cord blood bank in the world and performed its initial separation and storage of stem cells in 1992. It is now led by Co-CEOs David Portnoy and Mark Portnoy, who took their roles in August 2011 after a successful proxy fight. David Portnoy, a graduate of The Wharton School of Finance, brings a venture capital background, while Mark Portnoy, a graduate of the University of North Carolina at Chapel Hill, has a history in investment management and as a Chief Fixed Income Trader.

The company's business model is centered on providing cellular processing and cryogenic storage services for both private family use and public donation. Revenue is primarily generated from initial processing and testing fees, followed by recurring annual storage fees. Cryo-Cell offers clients various payment structures, including standard and premium plans, as well as multi-year and lifetime prepaid storage options. For fiscal year 2024, the company reported consolidated revenues of $32.0 million, with the majority stemming from processing and storage fees. The company serves expectant parents who wish to preserve their newborn's stem cells for potential future therapeutic use in treating conditions like leukemia, lymphoma, and sickle cell disease.

A significant milestone occurred in June 2018 when Cryo-Cell acquired CORD:USE Cord Blood Bank for $14 million, a strategic move that propelled the company into the public cord blood banking sector. This acquisition integrated CORD:USE's public banking operations and its relationship with Duke University, where renowned researcher Dr. Joanne Kurtzberg serves as Cryo-Cell's Medical Director. Furthering this academic collaboration, in February 2021, Cryo-Cell entered into an exclusive license agreement with Duke University, gaining rights to intellectual property and clinical data for cellular therapies targeting conditions such as autism, cerebral palsy, and stroke. The company employs its proprietary PrepaCyte-CB processing technology, which it acquired exclusive rights to, to maximize the recovery of healthy stem cells. Its storage facilities are FDA registered, cGMP-/cGTP-compliant, and accredited by the Foundation for the Accreditation of Cellular Therapy (FACT).