The New Future of Biotechnology: Enabling Technologies and Star Products

Report Highlights

• Biotechnology is gearing up to create a revolution in health care. Companies are moving from drug discovery and development based on medicinal chemistry to designing and developing drugs based on information provided by genomics. Gene therapy, although it may not enter the market for several more years, will change forever the treatment of disease by actually curing diseases rather than treating symptoms. Antibody-based drugs, in particular monoclonal antibody-based products, are on the cusp of significant commercial growth. New developments in antibody products are spurred in part by advances in technology that have now surmounted previous technical barriers to commercialization.
• The market for genetic data and technology alone is projected to be worth tens of billions of dollars within the next decade, and gene therapy, once fully in place will be worth hundreds of billions. The market for antibodies is more limited and short-lived, but antibody products are projected to exceed $10 billion in sales by 2005.

INTRODUCTION

OBJECTIVES AND GOALS OF STUDY

The aim of this report is to provide a range of information from detailed market analyses through industry trends – to quantify and qualify the impact of two leading technologies of the biotechnology industry—genomics (including proteomics, pharmacogenomics and bioinformatics) and therapeutic antibodies. This report provides discussions of the two enabling technologies—genomics and gene therapy—as well as antibody products in an effort to define their impact on the medical industry. The report develops forecasts for genomics-based products, services and applications, gene therapy products, and antibody drugs for 1999, 2000, and 2005. Comparative profiles are provided of companies developing these enabling technologies and products.

CONTRIBUTION OF THE STUDY AND FOR WHOM

Biotechnology is gearing up to create a revolution in health care. Companies are moving from drug discovery and development based on medicinal chemistry to designing and developing drugs based on information provided by genomics. Gene therapy, although it may not enter the market for several more years, will change forever the treatment of disease by actually curing diseases rather than treating symptoms. Antibody-based drugs, in particular monoclonal antibody-based products, are on the cusp of significant commercial growth. New developments in antibody products are spurred in part by advances in technology that have now surmounted previous technical barriers to commercialization.

The market for genetic data and technology alone is projected to be worth tens of billions of dollars within the next decade, and gene therapy, once fully in place will be worth hundreds of billions. The market for antibodies is more limited and short-lived, but antibody products are projected to exceed $10 billion in sales by 2005.

The information and analysis presented in this report is 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 to consultants to the pharmaceutical and biotechnology industry. The study provides a comprehensive analysis of the current and future markets for genomics-based products, services, and applications as well as those for antibodies, and projects the market for gene therapy.

STUDY SCOPE AND FORMAT

The scope of the study is worldwide. The overview section provides background information on the biotechnology drug industry in general to give the reader a clear understanding of the current impact of this sector and how it is transforming disease treatment. Information on sales of available biotechnology drugs is provided along with a listing of biotech drugs poised to enter the U.S. market.

The section on enabling technologies provides extensive description and analysis of the current status of technologies used in genomics and gene therapy as well as obstacles to and opportunities for growth in these areas. The products section describes available and emerging antibody-based pharmaceuticals and diagnostics and the impact of continued approvals of these agents on the pharmaceutical market.

The section on industry provides an overview of the structure of the biotechnology industry as well as a discussion of leading companies in this arena. The 1999 to 2000 Wall Street resurgence of biotech stocks is also analyzed in light of biotech drug pipelines and other factors that suggest this renewal of investment interest in biotechnology is well-founded and will not be short-lived.

The section on company profiles provides a detailed discussion of the companies that have pioneered the drugs and technologies discussed in this report. Information about how their available products and services are transforming the practice of medicine will also be provided.

METHODOLOGY

The base year for this study is 2000. Figures are based on revenue figures at the manufacturers' level and are projected at a 2,000-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 at leading biotech firms involved in the markets discussed, as well as with pharmaceutical companies who have alliances or other arrangements with these firms.

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 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 and obtain expert opinion on commercial potential and market sizes from industry professionals.