The Genomics Revolution

Report Highlights

• Genomics is quietly transforming the pharmaceutical industry. Companies are moving from drug discovery and development based on medicinal chemistry to the design of drugs based on information provided by genomics. Virtually all of the major pharmaceutical houses either have formed partnerships with genomics firms that began to emerge in the early 1990s or have created in-house genomics divisions. As little as 2 years ago, there were only a dozen or so firms in the genomics industry. In 1999, there are estimated to be more than 200 companies worldwide.
• The market for genetic data and technology is projected to be worth tens of billions of dollars within the next decade. Products provided by genomics firms include not only databases but also specialized software to search the databases. Besides databases, another genomics product is the DNA (deoxyribonucleic acid) biochip (also called the DNA microassay or DNA chip), which is able to analyze hundreds of samples simultaneously with nucleic acid probes placed on a glass wafer.

INTRODUCTION

OBJECTIVES AND GOALS OF STUDY

The aim of this report is to provide a range of information--including detailed market analyses and discussion of industry trends--to quantify and qualify the impact of genomics on the current and emerging pharmaceutical and diagnostic markets. Forecasts and trends were gleaned from interviews with industry sources as well as from considered assessment of available and emerging technologies. The report develops forecasts for genomics-based products, services, and applications from 1998 through 2004 and examines strategies employed by biotechnology companies and pharmaceutical firms to incorporate genomics technologies into their corporate strategies.

CONTRIBUTION OF THE STUDY AND FOR WHOM

Genomics is quietly transforming the pharmaceutical industry. Companies are moving from drug discovery and development based on medicinal chemistry to the design of drugs based on information provided by genomics. Virtually all of the major pharmaceutical houses either have formed partnerships with genomics firms that began to emerge in the early 1990s or have created in-house genomics divisions. As little as 2 years ago, there were only a dozen or so firms in the genomics industry. In 1999, there are estimated to be more than 200 companies worldwide that list genomics as one of their es.

The market for genetic data and technology is projected to be worth tens of billions of dollars within the next decade. Products provided by genomics firms include not only databases but also specialized software to search the databases. Besides databases, another genomics product is the DNA (deoxyribonucleic acid) biochip (also called the DNA microassay or DNA chip), which is able to analyze hundreds of samples simultaneously with nucleic acid probes placed on a glass wafer.

The reason for this rapid interest in genomics is simple: genomics allows greater efficiency in identifying therapeutic targets by determining which genes are responsible for the creation or enabling of disease processes, how these genes control these processes, and what might be done to stop them.

The information and analysis presented in this report on the genomics revolution provide an important asset in decision-making for managers involved in development, marketing, market research, product development, mergers and acquisitions, licensing, management, investment banking, and deal creation, and for consultants to the pharmaceutical and biotechnology industry. The study provides a comprehensive analysis of the current markets for genomics-based products, services, and applications, and, in particular, examines the market potential of technologies in development.

STUDY SCOPE AND FORMAT

The scope of the study is worldwide. The Overview section provides extended definitions of the components of genomics to provide the reader with a clear understanding of the technology involved. In addition, this section provides an analysis of how genomics will transform the health care industry and discusses agricultural and other nonmedical applications of genomics.

The Technology section provides extensive description and analysis of the current status of technologies used in gene mapping, gene sequencing, gene expression, and high-throughput systems, and examines obstacles to and opportunities for growth in these areas; special emphasis is given to DNA chips and pharmacogenomics. Leading companies in these technologies are also discussed. The Products section describes available and emerging genomics-based pharmaceuticals and diagnostics, with special emphasis on DNA microarrays.

The Applications section provides an overview of the leading markets for available and emerging genomics-based therapeutics and diagnostics. These include research applications such as gene sequencing, polymorphism analysis, and gene expression, and applied applications such as viral genotyping and diagnostic/disease management uses for nucleic-acid based diagnostics and diagnostic DNA microarrays. Applications including bacteriology, virology, blood testing, cancer diagnosis and monitoring, immune disease disorder patient management, multidrug resistance diagnosis, genetic testing, predictive testing, and identity testing. Leading companies in each of these areas are discussed. Further, the market for pharmacogenomic services is described and forecasted, and food and environmental testing applications of genomics-based diagnostics are examined as well.

The Industry Structure section provides an overview of the structure of the genomics industry and the patents that apply to genomics, and discusses the reaction on Wall Street to the genomics revolution. The Company Profiles section includes a detailed discussion of the companies that have pioneered the genomics revolution and examines how their available products and services are transforming the practice of medicine.

METHODOLOGY

The base year for this study is 1999. Figures are based on revenue figures at the manufacturers' level and are projected at 1999 dollar value; that is, inflation is not computed into the projection figures.

Information to prepare this study was derived from interviews with product managers, marketing strategists, research executives, and others. These individuals are at leading genomics firms or in pharmaceutical and biotechnology companies that either contract with these firms or have developed in-house genomics capabilities.

INFORMATION SOURCES

The information and analysis presented in this report are based on an extensive survey of the biotechnology and pharmaceutical industries as well as on a detailed examination of published literature and reports obtained from regulatory authorities, medical research institutions, pharmaceutical trade associations, and national and world health organizations. Key information from the literature was used as a basis to conduct dialogue with and obtain expert opinion from market professionals with regard to commercial potential and market sizes.