The Biotechnology Market Outlook: Growth opportunities and effective strategies for licensing and collaborations

Table of Contents

Executive Summary

Biotechnology industry status

The biotechnology market

Drivers and resistors of market growth

Biotech growth strategies

Changing relationship with pharma and biotech

Chapter 1 Biotechnology industry status

Summary

Introduction

Stock market performance

Growth of biotech sales

Sector growth to 2015

Increase in biotech research

Increase in biotech product approvals

Chapter 2 The biotechnology market

Summary

Introduction

Biotechnology in the major markets

Biotech drug groupings

Leading drug categories by ATC class

Human insulin and analogues

Erythropoietins

Interferons

Special antirheumatic agents

Other cytostatics and immunosuppressive agents

Monoclonal antibodies

Leading therapeutic areas for biotech products

Leading brands in the biotech market

Competitive landscape

Top 10 pharma/biotech companies by biotech sales

Top 10 biotech companies by total sales

Segmentation of biotech companies

Chapter 3 Drivers and resistors of market growth

Summary

Introduction

Drivers of market growth

Innovation gap in pharma R&D

Patent expiries of pharmas blockbuster drugs

Higher approval rates for biotech products

Diagnostic innovation

Fulfilling unmet ideas

Advancements in enabling technologies

Increased investor confidence

Resistors of market growth

Government cost containment and reimbursement

Biogenerics

Development of sales and marketing capabilities

Complex regulations

Analyst perception and access to funding

Public perception/ethics

Chapter 4 Biotech growth strategies

Summary

Introduction

Technology providers and developers

Successful growth strategies

Strategy 1: Become an acquisition target

Strategy 2: Independent operation through IPO and out-licensing

Early-stage drug developers

Successful growth strategies

Late-stage drug developers

Successful growth strategies

Fully integrated players

Successful growth strategies

Growth from an embryonic to integrated biotech

Case study: Millennium Pharmaceuticals

Chapter 5 Changing relationship between pharma & biotech

Summary

Introduction

Mergers and acquisitions

Pharma-biotech M&A

Biotech-biotech M&A

Biotech spinouts

Licensing and alliance deals

Pharma-biotech licensing and alliances

Biotech-biotech licensing and alliances

Conclusions

Chapter 6 Appendix

Primary research methodology

Index

List of Figures

Figure 1.1: History of biotechnology, 1971-2005

Figure 1.2: NASDAQ biotech index, 1995-2005

Figure 1.3: Biotech sector as share of total pharmaceutical market, 2000-2004

Figure 1.4: Industry prediction of future sector annual growth rates to 2015

Figure 1.5: Active biotech projects in development, 2004

Figure 1.6: US approvals of small molecule drugs and biological therapies, 1994-2003

Figure 2.7: Industry growth rates in the biotech and pharma sectors, 2000-04

Figure 2.8: Market maturity and annual market growth rate

Figure 2.9: Geographical split of the biotech market, 2004

Figure 2.10: Forecast change in product launch activity by drug category to 2015

Figure 2.11: Biotech market share by ATC class in Europe, 2000 & 2004

Figure 2.12: New launches by therapeutic area to 2015

Figure 2.13: Competitive positioning in the biotech market, 2004

Figure 2.14: Biotech companies at different stages of growth

Figure 3.15: Drivers of biotech industry growth

Figure 3.16: Innovation gap in pharmaceutical R&D, 1999-2004

Figure 3.17: Blockbuster US patent expiries, 2004-11

Figure 3.18: Comparative approval success rates of US biopharmaceutical products and drugs

Figure 3.19: The first diagnostic array - AmpliChip

Figure 3.20: Sources of finance in the US biotech industry, 2000-04

Figure 3.21: Resistors of biotechnology market growth

Figure 3.22: Annual change in national spending for selected health services (%), 1993-2003

Figure 3.23: Estimated exposure to biogenerics by company, 2005-2010

Figure 3.24: Absolute and proportional promotional expenses, 2000-2003

Figure 4.25: The lifecycle of a biotech company

Figure 4.26: Millennium SWOT analysis, 2005

Figure 5.27: Alternative growth strategies for biotech companies

Figure 5.28: Advantages of spin out companies

Figure 5.29: Attrition rates in pharmaceutical R&D by phase

Figure 5.30: Number of total and new drug discovery deals for the top 20 companies, Sep 2002 Mar 2004)

Figure 5.31: Impact of alliances on future drug development

Figure 6.32: Survey respondents by job function

Figure 6.33: Survey respondents by type of company and stage of biotech funding

List of Tables

Table 1.1: Biotech and pharma sales globally, 2000-2004

Table 2.2: Groupings of biotechnology products

Table 2.3: Global sales of antibody drugs ($m), 2004

Table 2.4: Top 10 biotech brands globally ($m), 2004

Table 2.5: Top 10 companies selling biotech products, 2004

Table 2.6: Top 10 biotech companies, 2004

Table 3.7: Public expenditure on healthcare, 2000

Table 3.8: Key biologic medicines, sales and estimated risk of generic competition, 2005-201068

Table 3.9: Key characteristics that determine level of risk from biogeneric competition in high risk therapeutic areas

Table 5.10: Major pharmaceutical M&A activity, 2003-04

Table 5.11: Pharma biotech deals, June 2004 . June 05

Table 5.12: Serono s licensing and alliance activity, 2004-July 2005