Report Scope & Objectives
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Life science research is weathering an economically challenging time, exacerbated by the federal budget sequestration in the United States and by continued austerity in Europe. Grant money from all sources, both public and private, is increasingly difficult to obtain; and pharmaceutical spending on R&D has flattened following years of solid gains. Adds to this mix a decreased level of reimbursement for molecular diagnostic testing and a slow recovery from the "Great Recession" to establish the external macro economic environment that has led to a new normal that is defined by increasingly constrained budgets.
By contrast, developing nations in Asia (China in particular) are making significant investments in higher education, with a focus on science and technology, to include biotechnology. In addition, many global pharmaceutical and biopharmaceutical firms are establishing research centers in these countries; taking advantage of lower cost structures and the new availability of a well-trained work force. Our 2013 studies suggest that average laboratory budgets in Asia are larger than those in the United States and Europe. In this complex macroeconomic environment, life science suppliers are seeking guidance as to how to anticipate market trends in the United States, Europe and Asia in 2014.
In this multi-sponsor report, BioInformatics LLC has conducted an in-depth exploration of projected lab budgets and sources of funding by region, and the implications of these findings for the life science tools market in the coming year.
The objective of this study is to assess sources of funding, the competitive landscape and market opportunities for life science tools companies. From the perspective of end-users, the goals of this assignment will be to:
-Understand current sources of funding from government/stimulus/private foundation grants, distribution time frame and how labs initiate applications for funding.
-Compare and contrast FY2013 (actual), and FY2014 (projected) average lab budgets in total by broad product category, region and market segment; providing directional information for FY2014.
-Estimate scientists' budget for purchases and anticipated purchases in instrumentation and consumables, examining trends across key product categories.
-Assess how optimistic scientists are regarding funding and the future of life science research.
To purchase this report, please contact:
Angela Fernandez
Marketing/Sales Coordinator
BioInformatics LLC
703.778.3080 ext. 14
reports@gene2drug.com
www.gene2drug.com
2. About this Report
• Get an overview of the economic landscape that
frames the report
• Learn about the scope of this report and how it will
help you with 2014 planning
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3. About BioInformatics LLC
A full-service market research
firm since 1994:
• Published and syndicated
reports
• Consulting and strategy
development
•
•
•
•
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Expert interviews
Focus groups
Surveys
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4. About BioInformatics LLC
Conducting market
research exclusively on
scientific markets:
manufacturing & material science
environmental testing
clinical diagnostics
• Lab products
• Analytical
instrumentation
• Biotechnology research
laboratory products
chemical, food & beverage
& bioprocessing
• Drug discovery &
life sciences
development
pharmaceutical
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agriculture biotech
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• Molecular diagnostics
Life Science Industry Market
Research
9. United States
Sequester
Uncertainty regarding
healthcare reform
Changes in molecular
diagnostic tests coding and
reimbursement
Flat to declining
pharmaceutical R&D
budgets
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10. Europe
Continued fiscal austerity
Changes in healthcare
institutions and funding
Funding of research is
complex and multilayered
Cross-border collaboration is
increasing
Leading institutions are taking
action to be competitive with
the U.S. in recruiting postdocs
from India and China
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11. China
Government and
commercial investment:
>$260 billion over the next 5
years
• 500 universities
• More than 150,000 life science
graduates per year
• Four innovation clusters
• 7,500 life science companies
• 200 life science incubators
• 100 life science parks
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“Sea turtles” return
Growth in pharmaceutical
market
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12. A New Normal for Life Science Research
Slow global recovery
Unfavorable research funding
pricing pressure
Growth in Asian markets may be slowing
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14. Objectives
Understand current sources of funding
Compare and contrast FY2013 (actual), and FY2014
(projected) average lab budgets
Estimate scientists’ budget for purchases and anticipated
purchases in instrumentation and consumables
Take the pulse of the life science community regarding
funding and the future of life science research
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15. Framework
Secondary research
Primary research
An extensive review of
Quantitative survey
United States and Europe
Have budget authority
relevant research councils,
funding agencies and private
funding sources
administered to life scientists
in the United States, Europe
and Asia
Sample size ≅ 1,000
75% academic/gov’t and
25% life science industry
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16. Questionnaire
Funding & Budgets
Techniques
• Current sources of funding
• Average lab budgets (2013 and
2014)
• Average lab budgets for
instrumentation
• Average lab budgets for
consumables
• Percent budget allocation for
overhead and salaries
• Current usage
• Explore adoption of new
products/techniques in the next
12 months
• Purchase of instrumentation
(actual in 2013 and expected in
2014)
• Identify new and emerging
technologies
• Laboratory headcount
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17. Customer Sentiment
Will my project
be funded
next year?
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18. Product Categories
Instrumentation for…
Consumables
• Cell-based analysis (flow cytometers,
high content analyzers, all
microscopes, high throughput
screening and analysis systems, etc.)
• Genome analysis (thermal cyclers,
real-time PCR instrumentation,
microarray instrumentation, NGS,
capillary electrophoresis, etc.)
• Protein analysis (chromatography,
electrophoresis, mass spectrometry,
label-free detection, calorimetry,
NMR, CD, etc.)
• Cell-based analysis kits and reagents
(cell culture media and reagents,
antibodies, cell biology kits, etc.)
• Genome analysis kits and reagents
(enzymes, kits, ladders, nucleic acid
purification and separation products,
oligonucleotides [primers, RNAi], etc.)
• Protein purification and separation
kits and reagents (chromatography
media, electrophoresis matrices,
protein ladders, etc.)
• General laboratory chemicals,
plasticware, glassware and
disposables
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24. Share Gain/Share Protect Strategies
Where is the growth?
Funding trends?
Are researchers pitching their
grants to follow the money?
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25. How You Can Use It
Check assumptions
Make decisions
Forecast revenues
Identify potential growth
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26. Pricing
Cost of non-sponsor report
purchase is $18,000
Deliverables Include:
• Electronic PDF of Report
• Data Set in XLS Format
• Data Legend
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28. Contact
Lab Budgets and
Sources of Funding in
2014
December 2013
Robin Rothrock, Ph.D.
Director of Publications
703.778.3080 x25
r.rothrock@gene2drug.com
CALL TODAY to GET YOUR COPY OF
THE REPORT!
Angela Fernandez
Marketing Coordinator
703.778.3080 x14
a.fernandez@gene2drug.com
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Research