Nanotechnology involves the miniaturization of devices beyond microengineering. At nanoscale, materials can have quite different properties, as different physical principles, like van der Wall's forces and quantum effects, become more dominant. Intuitive understanding of forces like friction or surface tension is not useful at this level. Nanostructured materials may be very much stronger and lighter than conventional bulk materials. In this report, we consider the way in which nanoscale devices are being put to use in the biomedical industry, including molecular diagnostics, drugs, drug delivery, and drug discovery, nanotools, such as imaging devices and software, and in medical implants. According to a soon-to-be-released report from Business Communications Company, Inc. Biomedical Applications of Nanoscale Devices, the worldwide market for nanoscale devices and molecular modeling is expected to rise at an AAGR (average annual growth rate) of 27.5% from $406 million in 2002 to $1.37 billion in 2007. A nanoscale device is one that has one or more critical components with architectural features that are 100 nm or less. Biomedical uses of some nanoscale devices must go through a Food and Drug Administration approval process in the U.S., and the European Union and other countries have similar regulations. These involve animal testing, clinical trials, and an exhaustive analysis of the data, involving peer review, which takes time and a lot of money. It is estimated, for instance, that the average pharmaceutical takes $600 to $800 million and about 12 years to develop. Hence, even though there are projections that nanotechnology will contribute over one trillion dollar to the world economy, biomedical nanoscale devices will take awhile before they are successfully commercialized, since they are only now becoming available. Nanoscale devices will eventually be employed as drugs or for drug delivery; in assays used for medical diagnosis, drug discovery, or basic biological research; as contrast agents for MRI imaging; and in imaging instruments, like X-ray devices. We also include in this report nanotools that employ nanoscale cantilevers, like dip pen nanolithography or atomic force microscopes. Attempts to create artificial cells and artificial organs, like the retinal implant are also discussed. We see a 34.5% average annual growth rate in revenues derived from biomedical nanoscale devices through 2007, becoming a one billion dollar industry by that date.

Global Market for Biomedical Nanoscale Devices, 2001-2007 ($ Millions)

	2001	2002	2003	2004	2005	2006	2007	AAGR % 2002-2007
Nanoscale devices	234	269.3	339.0	438.2	583.1	808.5	1,186.1	34.5
Molecular modeling	132	137.0	149.4	157.0	165.0	173.0	182.0	5.8
Total	366	406.3	488.4	595.2	748.1	981.5	1,368.1	27.5