Expansion of Sequence Data Drives Biochemical Reagent Usage

08-Apr-2002

The increasing availability of gene sequencing information through public and commercial initiatives is facilitating easier application of technologies that require sequential understanding, such as proteomics and functional genomics. As a result, demand is rising for a range of research biochemicals, the reactive agents that researchers use in those fields. The need for enzymes, monomeric compound subunits, antibodies, and purification matrices will grow steadily over the next several years. New analysis from Frost & Sullivan, U.S. Research Biochemical Markets, reveals that this industry generated revenues totaling $981 million in 2001. Revenues for molecular biology reagents, DNA research consumables, immunochemistry reagents, and cell culture reagents could surpass $2 billion by 2007. Markets for biochemical reagents are changing rapidly. The loss of patent protection is transforming some products into commodities. Older reagents, such as restriction enzymes, have already lost intellectual property protection worldwide. As more companies have access to these products, competition will intensify and prices will drop. "Research biochemical markets must moderate the influence of decreasing patent protections, or risk being dominated by commodity dynamics," says Frost & Sullivan Industry Analyst Brad Peters. "The question is how to maintain or increase profit margins when setting a higher price means quickly losing customers to the competition." For some companies, the solution may be to use products no longer protected by patents in the development of new combination technologies. In the meantime, strong brand image will be an invaluable asset in navigating increasingly competitive markets. "Market leaders in the research biochemicals industry have very well-respected, long standing brand names," says Peters. "The recipe for success in this market, as some of the established firms have recognized, remains a focus on efficient distribution networks, broad product lines, and a web of licensing and partnership relationships."

https://www.chemeurope.com/en/news/9941/expansion-of-sequence-data-drives-biochemical-reagent-usage.html