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Research: Healthcare
Polski Bank Komórek Macierzystych (PBKM) continues its consolidation efforts in the cord blood banking services market in Europe. It operates 15 stem cell banks under the FamiCord brand, covering approximately 37% of the European market for newly acquired samples, seeing space for further growth in Western Europe. PBKM is present in 11 European countries, with partners in a further 13 regions. Recent steady growth (2015–19 revenue CAGR of 16%) has been fuelled by both organic development and M&A.
PBKM (FamiCord) |
European leader in stem cell banking
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Pharma & biotech |
Deutsches Eigenkapitalforum 2020
21 October 2020 |
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Polski Bank Komórek Macierzystych (PBKM) continues its consolidation efforts in the cord blood banking services market in Europe. It operates 15 stem cell banks under the FamiCord brand, covering approximately 37% of the European market for newly acquired samples, seeing space for further growth in Western Europe. PBKM is present in 11 European countries, with partners in a further 13 regions. Recent steady growth (2015–19 revenue CAGR of 16%) has been fuelled by both organic development and M&A.
Continued inorganic expansion
PBKM recently acquired a 70% stake in a Turkish stem cell bank for €2.8m, took full control over German eticur for €2m and acquired 53% of shares in Italian Sorgente for €420k. These acquisitions should add a c 3% to PBKM’s market share in Europe. The transactions were financed by last year’s c €51m private placement taken up by AOC Health, now a majority shareholder (62.4% stake). PBKM seeks further M&A deals, with an acquisition value over c €70m on its priority list. PBKM is also involved in three R&D consortia clinical trials with a 10–38% share in IP rights, as well as the fully-owned ALSTEM project, which has started enrolment in a clinical trial. In Q120, the company signed a contract for the use of CAR-T technology in Europe, currently the most innovative therapy in blood cancer treatment. PBKM plans to spend c PLN15m on CAR-T development in 2020–24 (it is expecting additional funds from grants as part of public programmes).
COVID-19 pandemic impact on sales
PBKM’s H120 adjusted net income was €1.4m (H119: €2.2m). Net revenue improved 8% y-o-y to €22m, driven mostly by M&A. The adjusted EBITDA margin of 13.7% declined 5pp y-o-y due to higher management costs (due to acquisitions), increased operational costs (affected by the pandemic), as well as increased headcount (for further expansion). Many of the off-line selling channels were closed due to COVID-19 and new contracts declined by 15–20% y-o-y at group level. Meanwhile, recurring subscription revenues were €5.8m (+6% y-o-y) in H120.
Valuation
PBKM does not provide any financial guidance for FY20 and there are no consensus estimates. Based on a last 12 months adjusted P/E ratio (47.9x) and adjusted EV/EBITDA (22.6x), it trades at 63% and 69% premiums to medical services peers. This may reflect expectations of continued rapid inorganic growth. Additionally, PBKM has a leading market position and high proportion of predictable cash flows in its subscription-based model.
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Historical financials
Source: PBKM, Refinitiv. |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: Financials
Record’s Q221 trading update confirmed that its new $8bn dynamic hedging mandate has started and that, prior to this, assets under management equivalent (AUME) expanded by 4% in the quarter. The group continues to work on developing new products and is deploying technology to enhance its ability to deliver these and existing products cost effectively.