Abstract
Product Innovation Key to Sustain Growth in a Market Slowed by Curbs in
R&D Budgets
As revenue growth outpaces R&D expenditure in the pharmaceutical industry
their uptake of research products is on the downturn. This poses a major
drawback for research product manufacturers since the pharmaceutical industry is
their biggest consumer. This challenge is compounded by the mergers occurring in
the pharma industry which reduces customer base and cuts back on R&D budgets
post-merger. Biotechnology and academic/government organizations are other
primary consumers and with drastic reductions in the National Institutes of
Health?fs budget, purchase by academic and government institutions is also on
the decrease. In such a subdued market, only companies that offer
technologically innovative products with significant value proposition will be
successful.
This Frost & Sullivan research analyzes the highly competitive research
biochemicals markets and provides strategies to develop and maintain market
share. Product segments such as molecular biology reagents, immunochemistry, and
cell-culture are researched and comprehensive information is provided on the
various products offered by competitors. Additionally, this research is
complemented by a comprehensive molecular biology end-user survey.
Value-based Product Lines Increase Sales Volume and Revenues
"The development of a value-based product line offers consumers
financially viable choices, while still purchasing products from a trusted
vendor," says the analyst. This is likely to attract buyers, particularly
from the government and academic sectors where cost is of primary concern. Basic
reagents and generic consumables provide consumers with inexpensive solutions.
In a market flooded with ?ecommodity-nature?f products such as nucleic acid
isolation products and low-fidelity DNA polymerase, the focus needs to be on
offering unique solutions for niche applications.
Emerging Technologies to Drive Market Expansion
In spite of decreased consumer spending, with the focus on new fields such as
proteomics and functional genomics, there are substantial opportunities for
market growth. With innovative, emergent technologies and by devising new fields
of application for existing products, manufacturers can look to expand customer
base. The growing use of molecular techniques such as genotyping, pathogen
detection, and viral load monitoring is a significant source for future revenue
for manufacturers. Future developments are also anticipated in the areas of
study of RNAi and protein arrays.
As researchers?f needs change with time, manufacturers must remain
positioned to capitalize on the rising opportunities. By tuning in to market
changes, manufacturers can anticipate success in this competitive market.
"Sales and technical support staff must also be trained to recognize
emerging opportunities, as these are the individuals that are regularly in
contact with the consumers," concludes the analyst.
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