Vita 34’s objective is to continue and reinforce successful growth course also achieved in recent years also in the future. In doing so, Vita 34 is concentrating on revenue and earnings growth. For the medium term this means working to achieve the “Vision 2021,” which aims for an EBITDA of EUR 10 million in 2021.
The Management Board has identified the following three building blocks to achieve this strategic growth:
- Expansion of the Core Business and Broadening the Product Portfolio
- Inorganic Growth by Acquisition
- New Research and Development Fields
Expansion of the Core Business and Broadening the Product Portfolio
Internationally, within the umbilical cord blood and umbilical cord tissue storage sector, Vita 34 has a unique product portfolio. Vita 34 aims to broaden the product range for stem cell deposits on a consistent basis by applying active portfolio and lifecycle management techniques. The “VitaMine&Yours” product introduced in 2016, which combines the storage of umbilical cord blood for personal use with the opportunity of providing donations, has been received well in the marketplace. In addition to storing umbilical cord blood and tissue, it is also planned to collect and store adult stem cells. In the short term, autologous adipose tissue shall be collected and stored. The second stage shall be preparing this tissue for use in plastic surgery or for cosmetic purposes. In the medium term, it is planned to expand the current product offering to provide a comprehensive biobank service. This could be biological specimens of separated immune cells or periphery bloods from children or adults, which could be used in, for example, immune therapies or immuno-oncology treatments.
Inorganic Growth by Acquisition
The growth strategy is focused on vertical and horizontal acquisitions that strengthen the market position through clearly defined criteria and, in addition, provide synergy benefits, in particular in sales and marketing as well as in manufacturing and management areas.
By making opportunistic acquisitions along the value chain or acquiring businesses that have complementary product offerings, Vita 34 is following a vertical portfolio expansion strategy.
The horizontal market expansion is focused on opening up new geographical markets. This can be achieved by acquiring established competitors or by building up majority shareholdings. In doing so, expansion will take place in selected European markets.
New Research and Development Fields
Vita 34 pursues a clearly focused innovation strategy. Vita 34 has identified the establishment of new products and services as an important growth factor. This will involve expanding the value-added chain by adding products and services for the pharmaceutical industry or for government organizations. Vita 34 also plans to offer support for stem cell-based therapies.
The scope of future research and development activities and projects will be limited to a volume that is commercially sensible, shall be selected projects that are oriented to market trends, and shall carry a minimum risk profile in respect of the research partners involved. In addition to the current core business, Vita 34 assesses the demand for new products in the regenerative medicine sector (storage of adipose tissue to collect mesenchymal stem cells and adipocytes) and for cell therapies (storage of T-cells, natural killer (NK) cells, and dendritic cells). The objective is to participate in the advances made in regenerative stem cell medicine and various immuno-oncology cell therapies in the medium and long term.