Blood and Organ Banks

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,500 blood and organ banks in the US collect, store, and distribute blood and blood products, organs, and tissues. Blood banks and organ banks are non-profit organizations. Tissue banks and plasma banks can operate as for-profit entities. Blood and organ banks may have contracts with hospitals, healthcare providers, pharmaceutical companies, or other organizations.

Extremely Perishable Inventory

Blood, organs, and tissue are extremely perishable and require specialized removal processes and storage conditions.

Limited Sources of Supply

Supply of blood, organs, and tissue is dependent on the availability of donors, which is well beyond the control of the industry.

Industry size & Structure

The average blood or organ bank employs 48-49 workers and generates $9 million in annual revenue.

    • The blood and organ bank industry consists of 1,500 establishments that employ 76,800 workers and generate $14 billion annually.
    • Non-profit organizations account for 52% of establishments and about 71% of revenue. For-profit organizations account for 48% of establishments and about 29% of revenue. Blood banks and organ banks are non-profit organizations. Tissue banks and plasma banks can operate as for-profit entities.
    • The industry is concentrated; the top 50 companies account for over 84% of industry revenue.
    • Large organizations include the American Red Cross, America's Blood Centers, and the Musculoskeletal Transplant Foundation. In the US, 58 non-profit organ procurement organizations (OPO) coordinate the organ donation process.
                                  Industry Forecast
                                  Blood and Organ Banks Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 14, 2022 - Lab-grown Blood Tested In Humans
                                  • Researchers are testing lab-grown blood in human study participants. The project, called RESTORE, is a collaboration between scientists from three universities in the United Kingdom, and from England’s National Health System Blood and Transplant. The goal is to supplement the natural blood supply with fabricated red blood cells, which are grown from human stem cells. RESTORE scientists obtain a standard pint-sized blood donation from a human donor to begin making the blood. They then use magnetic beads to separate about 500,000 stem cells out from the rest of the tissue. These stem cells are encouraged to multiply until they reach a population of about 50 billion, approximately 15 billion of which are considered to be at the appropriate stage of development for transplant. Researchers have transfused the lab-grown blood into two healthy recipients, each of whom received five to 10 milliliters (approximately one to two teaspoons).
                                  • The US Food and Drug Administration (FDA) released guidance that reverses a prohibition against blood donations by some military personnel. Individuals were unable to donate if they had traveled to France, Ireland, or the United Kingdom or received a blood transfusion in those countries, due to the risk of variant Creutzfeldt-Jakob disease, also known as mad cow disease. The FDA concluded that the risk of transmission of vCJD through blood donation was effectively negligible and now allows tens of thousands of previously deferred potential donors to give blood.
                                  • Maine’s Red Cross is seeking more racially diverse donors to be among the 3% of the state’s population that gives blood regularly. Genetically inherited medical conditions such as sickle cell disease and thalassemia affect specific populations, and treatment can include frequent blood transfusions. The majority of people with sickle cell disease are of African descent. It is also more commonly found in people of Hispanic, Indian, Asian, or Middle Eastern ancestry. “The country is becoming more and more diverse, and we need to have a blood supply that’s diverse,” said Thomas Hinman, market manager for Northern New England Blood Services of American Red Cross. Experts say that the need for racially diverse blood donations isn’t just an issue in Maine. African Americans make up 13% of the US population but less than 3% of blood donors, according to the Red Cross.
                                  • Australian scientists have developed new cryopreservation agents that could one day help to eliminate the need for organ transplant waiting lists. Cryopreservation is a process of cooling biological specimens down to very low temperatures so they can be stored for a long time. Storing cells through cryopreservation has had major benefits -- including boosting supplies at blood banks and assisting reproduction -- but it is currently impossible to store organs and simple tissues. Cryopreservation agents help to protect against damage during cryopreservation, primarily from dehydration and freezing by preventing the formation of ice crystals that can damage cells. "This cryoprotectant was more effective and less toxic than its individual components,” lead researcher Dr Saffron Bryant said. "This is one of the first times that this class of solvents has been systematically tested for cryopreservation of mammalian cells."
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