Abstract

As revenue growth outpaces R&D expenditure in the pharmaceutical industry their uptake of research products is on the downturn. This poses a major drawback for research product manufacturers since the pharmaceutical industry is their biggest consumer. This challenge is compounded by the mergers occurring in the pharma industry which reduces customer base and cuts back on R&D budgets post-merger. Biotechnology and academic/government organizations are other primary consumers and with drastic reductions in the National Institutes of Health’s budget, purchase by academic and government institutions is also on the decrease. In such a subdued market, only companies that offer technologically innovative products with significant value proposition will be successful.

This Frost & Sullivan research analyzes the highly competitive research biochemicals markets and provides strategies to develop and maintain market share. Product segments such as molecular biology reagents, immunochemistry, and cell-culture are researched and comprehensive information is provided on the various products offered by competitors. Additionally, this research is complemented by a comprehensive molecular biology end-user survey.

Value-based Product Lines Increase Sales Volume and Revenues

The development of a value-based product line offers consumers financially viable choices, while still purchasing products from a trusted vendor," says the analyst. This is likely to attract buyers, particularly from the government and academic sectors where cost is of primary concern. Basic reagents and generic consumables provide consumers with inexpensive solutions.

In a market flooded with ‘commodity-nature’ products such as nucleic acid isolation products and low-fidelity DNA polymerase, the focus needs to be on offering unique solutions for niche applications.

Emerging Technologies to Drive Market Expansion

In spite of decreased consumer spending, with the focus on new fields such as proteomics and functional genomics, there are substantial opportunities for market growth. With innovative, emergent technologies and by devising new fields of application for existing products, manufacturers can look to expand customer base. The growing use of molecular techniques such as genotyping, pathogen detection, and viral load monitoring is a significant source for future revenue for manufacturers. Future developments are also anticipated in the areas of study of RNAi and protein arrays.

As researchers’ needs change with time, manufacturers must remain positioned to capitalize on the rising opportunities. By tuning in to market changes, manufacturers can anticipate success in this competitive market. "Sales and technical support staff must also be trained to recognize emerging opportunities, as these are the individuals that are regularly in contact with the consumers," concludes the analyst.

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