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Biotechnology is poised to be one of the most influential industries of the twenty first century.  We apply our understanding of this challenging, fast-growing industry to help clients maximize their profits.  To request information on how our biotech consulting can help you, click here.

Despite some occasional difficulties and setbacks, the global biotechnology industry continues to show impressive promise. We expect world biotech product sales to reach $133 billion in 2014.

The key to industry growth remains in human therapeutics, although diagnostics, including work on bioterrorism detection and defense, have recently gained in importance. CRC analysts expect U.S. biotechnology product sales to grow at an average annual rate of 11 percent over the coming decade, exceeding $73 B dollars by 2014.

Human Therapeutics
By far the largest of the five biotechnology categories, human therapeutics will maintain this position well into the 21st century. Over the next decade, biotech-based U.S. human therapeutics sales should grow at an average annual rate of 11 percent, from nearly $20 B in 2004, to $56 B in 2014.

Human Diagnostics
This remains the second largest segment in the biotech industry. As new genetics-based technologies are developed, human diagnostics sales are expected to grow at an average annual rate of six percent, from about $3.4 B in 2004, to more than $6 B in 2014.

Agriculture
Though this segment represents a much smaller biotech market than both human therapeutics and diagnostics, it will grow somewhat more rapidly. Consulting Resources expects U.S. agbio product sales to enjoy an average annual growth rate of 14 percent, increasing from $1.9 B in 2004, to $7.0 B in 2014. Although protests against the use of GMO’s have occurred, this issue has continued to fade as public concern is shifted towards more immediate threats. The use of genetically modified corn in the United States is expected to remain relatively steady, while the use of genetically modified soybeans is expected to grow significantly in the next several years.

Specialties
Specialties are expected to grow at an average annual rate of 12 percent, from more than $900 million (MM) in 2004, to about $2.8 B in 2014, making this the second fastest growing segment in the U.S., after agriculture. The sector is comprised of chemical and biological products created using biotechnology, including enzymes and bioplastics.

Non-medical diagnostics
This sector constitutes the smallest of the five market segments. It includes diagnostics for food contaminants, such as pesticides and other hazardous chemicals. U.S. non-medical diagnostics sales are expected to grow at an average annual rate of ten percent, from $500 MM in 2004, to about $1.3 B in 2014.

Several suspected bioterrorism attacks in the United States, brought with them a surge of interest in the non-medical diagnostics sector. As a result, numerous biotechnology companies have begun to develop tests for potential bioterrorism agents. Among the many companies working on developing rapid diagnostic tests in this area are Cepheid (Sunnyvale, CA) and Nanogen (San Diego, CA). The Bush administration's budget for fiscal 2004 included more than $100 B for bio-defense related R&D, which boosted growth in this field.

For more information regarding how we can help satisfy your consulting needs in this and other industries covered by Consulting Resources, please contact us with your questions.

 

U.S. BIOTECHNOLOGY PRODUCT SALES FORECAST*
(millions of dollars)

 
Base Year


Forecast Years

'04-'14
Growth
Key Sectors
 
2004 2009 2014 (ppa)
Human Therapeutics 19,800   33,400   56,000   11  
Human Diagnostics 3,400   4,700   6,100   6  
Agriculture 1,900   3,800   7,000   14  
Specialties 900   1,700   2,800   12  
Non-Medical Diagnostics
 
500   900   1,300   10  
TOTAL
 
26,500  

44,500

 

73,200

  11  
Source: Consulting Resources Corporation

* To be conservative, our sales forecasts for agriculture include genetically enhanced crops on a value-added bases, rather than on the basis of total seed or crop revenues.



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