Market Analysis - Bio America 2017
World Biotechnology Market Analysis and Reports Bioamerica.
Globally, the biotechnology industry, part of the life sciences sector has emerged as an attractive segment and is expected to grow by 37 percent at a Compound Annual Growth Rate (CAGR) of 8.2 percent over the four-year period 2017-21. This growth, although single digit, is significantly higher than the more traditional segments in the life sciences sector, such as pharmaceuticals (expected to grow at a CAGR of approximately 4 percent during 2015-19). The global sales contribution of biologic drugs in the total drug market is expected to increase from 23 percent in 2017 to 27 percent in 2022.
The Americas and Europe currently account for the largest share in the global biotechnology market. Although, due to favourable government policies, a relatively low cost of conducting clinical trials and manufacturing products, and an improving healthcare ecosystem, higher growth is expected in the Asia Pacific (APAC) region.
The global biotechnology market size was valued at USD 270.5 billion in 2013 and is expected to grow at a CAGR of 12.3% owing to the increasing demand for diagnostics and therapeutics solutions such as recombinant technology, red biotechnology, and DNA sequencing. The increasing prevalence of diseases such as cancer, hepatitis B, and other orphan disorders is expected to serve as a high-impact rendering driver for this industry over the forecast period. Rising government initiatives owing to high significance towards growth of the economy are expected to boost the biotechnology market growth over the forecast period. Increasing demand for agricultural and food products such as wheat, rice, sugarcane, and beans owing to growing population base in countries such as the U.S., China, and India is another major factor positively impacting the growth of the industry. Factors such as limited availability of agricultural land, shortage of water, the low yield of crops, and pest attacks are encouraging researchers to develop innovative agricultural technologies via extensive R&D activities. Application of biotechnological processes such as Genetic Modification (GM) and genetic engineering on agricultural products is a major driver for the growth of this industry. Geographically, Biosimilars market is segmented into North America, Europe, Asia-Pacific and LAMEA. Due to favorable regulatory policies designed by the European Medical Association, the European market has been maximizing on the market. Asia-Pacific and LAMEA market would witness a substantial rise in the use of biosimilars, as the demand for cost effective treatment is growing due to the prevalence of chronic diseases. Collaboration with local players would be a key opportunity that could be fully explored by the biosimilars manufacturers in developing economies. Many companies such as Amgen and Novartis are collaborating with Asian players to gain a foothold in the biopharmaceutical market.
Biotechnology firms’ focus on novel pharmaceutical compounds distinguishes them from the larger, more well-known pharmaceutical companies. During the 10-year period ended December 31, 2014, the largest biotechnology ETF in the world, the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB), provided investors an annual total return of 15.1%. The S&P 500 Index returned 7.7% per year over the same period. Such eye-popping returns naturally attract the attention of investors.Biotech drug sales were an estimated $289 billion in 2014 and are projected to grow to $445 billion by 2019 (Figure 2).11 In addition, biotech’s share of worldwide prescription drug and over-the-counter pharma sales is projected to increase from 23 percent in 2014 to 26 percent in 2019. European nations are rushing to develop home-grown biotechnology industries. In the process, they must deal with difficulties obtaining venture capital, conservative attitudes toward commercial risk, and frequently suspicious public opinion.
Outlook on biotechnology Applications.
Global biotechnology market, based on application, is divided into biopharmaceutical, bio services, bio agriculture, and bio industrial. In 2014, biopharmaceuticals products such as advanced drugs, orphan drugs, monoclonal antibodies, and recombinant proteins dominated the overall industry with around USD 184.21 billion revenue. The sales of the 30 best selling antibodies and proteins in 2014 are listed up, each of them posting more than US$ 1 bln sales in 2014. The report compiles 2014 sales of the major therapeutic proteins per class: erythropoietin, insulin and insulin analogs, coagulation factors, interferon alpha, interferon beta, granulocyte colony-stimulating factor (G-CSF), human growth hormone (hGH), enzyme replacement therapy and follicle stimulating hormone (FSH). The report compiles 2014 sales of therapeutic antibodies per class: cancer antibodies, anti-TNF antibodies, other anti-inflammatory antibodies, ophthalmic and antiviral antibodies as well as other therapeutic antibodies.According to an investigation by Ernst and Young relating to the German biotech industry, 92% of companies are currently (2004) working in the field of red biotechnology, 13% in green, and 13% in gray or white biotechnology (environmental and industrial production contexts).
Biologics (biotech drugs, biological drugs, biopharmaceuticals) include a wide range of products such as vaccines, therapeutic proteins, blood and blood components, tissues, etc. The global biologics market totaled $200.6 billion in 2013 and is expected to grow to nearly $234 billion in 2014. The total market is expected to grow to $386.7 billion by the end of 2019 at compound annual growth rate (CAGR) of 10.6%. Biologic agents will continue to outpace overall pharma spending growth and are expected to represent 19-20% of the total market value by 2017. • Biologics growth is driven by Monoclonal Antibodies (MABs) and human insulin, with four out of the top five biologics in 2012 being MABs.
Regional wise biotechnology a bird's-eye view.
The global biotechnology industry is substantial in size and has experienced high growth in the past. Emerging and developed countries in Africa, Asia, Australia, Europe, North America, and South America playing vital role for developing, innovating and modernanising the biotech industry in order to meets the challenges of industrial growth, number of jobs and new companies. The global biotech industry, led by the United States, was $84.6 billion in 2010 and is expected to grow at a 7% CAGR to $103 billion by 2013. The United States remains the bedrock of the biotech industry, though Europe and Asia are fast growing international markets. Several European biotechnology companies have announced plans to outsource their manufacturing through collaborations with international partners, increasing production efficiencies and adding to corporate earnings growth. The biotechnology industry in developing countries small but has a substantial pipeline of potential new products and processes in the research and development stage. The major factors which will promote global biotechnology industry are cohesion in research programs, market-focused research and academics to commercialize research, clear IP policies that incentivize commercialization, entrepreneurial and technology transfer skills and mechanisms, sufficient public and private funding for research and product commercialization. A major collaboration between public institute and a leading pharmaceutical company will enable greater collaborations in process development.
The North America, Europe, Asia are fast-growing bio-clusters, presenting strategic partnership opportunities with research institutes, corporate labs and public hospitals to develop new medicines and future therapies that can be customized for regional and global markets. North America accounted for the largest share of the overall industry in 2015, accounting for over 42.30% of the revenue share, as a result of increasing initiatives in R&D by various pharmaceutical companies.Asia Pacific is expected to gain substantial market share and reach around USD 145.9 billion by 2020. Escalating awareness about the advantages associated with adoption and introduction of healthcare benefits by the government are driving forces for this region. The Latin American market with a population approaching 500 Million is beginning to command attention.
Biotechnology and life sciences contribute to the modernization/development of world industry. They are used in a variety of industrial sectors such as healthcare and pharmaceuticals, animal health, textiles, chemicals, plastic, paper, fuel, food, and feed processing. Taking advantage of biotechnology helps the world economy grow and provides new jobs, while also supporting sustainable development, public health, and environmental protection. The world economies aim to identify and remedy obstacles to the biotechnology industry. As biotechnology is used in variety of economic sectors, it is necessary to analyse the market conditions in several different fields. These include biopharmaceuticals, chemicals and industrial processes, bio-based products, and agro-food applications. Therefore, global industry giants, academic institutions and government of particular regions implementing a broad strategy and action plan for the development of life sciences and biotechnology-based products. This included setting priorities for better access to finance and technology transfer for biotechnology. Bayer Healthcare invested an additional S$14.5 million in five projects with local academic institutions to advance R&D to improve early diagnosis and treatment of cancer. Additionally, GlaxoSmithKline (GSK) established its first Academic Centre of Excellence in Singapore and its first four projects focusing on early-stage research in ophthalmology, regenerative medicine and neuro-degeneration to elucidate new mechanisms of action for innovative medicines. European nations are rushing to develop home-grown biotechnology industries. In the process, they must deal with difficulties obtaining venture capital, conservative attitudes toward commercial risk, and frequently suspicious public opinion. With a track record in scientific know-how, talent and innovation, North America, Europe, Latin America, Asia-Pacific, and MEA has become a global hub in the field of biotechnology. However, academic institutions and industrial intelligentsia needs turning ideas into real, in order to do that all come to single stage to learn from other key biotechnology locations. Indeed, biotechnology has been a cornerstone of global competitiveness in terms not only of research and innovation but also in terms of industrial growth, number of jobs and new companies created in member states. There is a need for increased collaboration among a broad base of stakeholders, including industry, academia, teaching hospitals and patients.
Glimpse of Biotech industry in world.
Biotech drugs (vaccines, biologics) continue to gain traction in the life sciences sector. Of the top 10 pharma products by sales in 2014, the majority of them were biotech drugs, including monoclonal antibodies and recombinant products. Treatments for rheumatoid arthritis, Hepatitis C, and cancer figure most prominently in the list of the most sales generating drugs. The global biotech industry, led by the United States, was $84.6 billion in 2010 and is expected to grow at a 7% CAGR to $103 billion by 2013. According to a report by Frost and Sullivan (F&S), the size of the global biotechnology industry is set to reach $433 billion and the global biosimilar industry to reach US$ 19.6 billion by 2015.
Share in Global Biotech Industry
United States 72.80%
Key technologies include fermentation, tissue engineering, Nano biotechnology, PCR technology, DNA sequencing, chromatography, cell-based assay, and others. In 2013, the tissue engineering and regeneration segment dominated the overall industry with USD 87.92 billion revenue. However, the DNA sequencing and cell-based assay segment is expected to witness lucrative growth till 2020 due to rising research and development initiatives by various pharmaceutical and biotechnological companies. Tissue engineering has wide applications in various diseases. Tissue engineering is utilized for development and repair of cells and organs, which have lost its functionality due to injury, burns, aging, diabetic ulcers, and congenital abnormalities. Increasing incidences of Parkinson’s disease and Alzheimer’s is a vital driver for the growth of this industry as tissue regeneration technology repairs damaged cells. Rising prevalence of diabetes is another growth propeller as tissue regeneration repairs islet cells of the pancreas. DNA sequencing is expected to grow at a CAGR of over 18.1% owing to its wide applications in various verticals such as agriculture, biology, medical, and geology. Rising R&D, declining cost of DNA sequencing, rising demand for PCR technology along with breakthroughs in nanotechnology and bioinformatics field are expected to be high-impact rendering drivers for this industry.
Biotechnology at glance in USA
The United States is the largest market for pharmaceuticals (including biopharmaceuticals), accounting for around 35 percent of the global market, and is the world leader in biopharmaceutical research and development (R&D). According to the Pharmaceutical Research and Manufacturers Association (PhRMA), U.S. firms conduct the majority of the world's research and development in pharmaceuticals and hold the intellectual property rights on most new medicines. The biopharmaceutical industry provides average salaries well above the average for all U.S. workers, and requires a highly-skilled and educated workforce from the administrative level up to and including Ph.D. scientists. The United States ranks first in the number of biotech firms, PCT patent applications, and biomedical treatment approvals, with Spain coming second, according to the 2015 OECD report on biotechnology statistics. According to the report, the U.S. has 11,367 biotech firms followed by 2,831 in Spain and 1,950 in France. They are followed by Korea, Germany, United Kingdom, Japan, Mexico, New Zealand and Belgium rounding out the top 10. The United States has one of the world’s most supportive domestic environments for the development and commercialization of pharmaceuticals with minimal market barriers. Its strengths include an intellectual property system that rewards innovation through patent and data protection, a science-based regulatory system that is considered the most rigorous in the world, the world’s largest scientific research base fostered by academic institutions and decades of government research funding, and robust capital markets. The United States attracts the majority of global venture capital investments in start-up biopharmaceutical enterprises. The current state of the biotech market in USA.
Biopharma 61% 63.40%
BioAgri 14% 13.60%
Bioservices 20% 18.40%
BioIndustrial 04% 03.28%
Bioinformatics 01% 01.23%
Conferenceseries invites the contributors across the globe to participate in the premier “18th Biotechnology Congress” (Biotechnology Congress-2017), to discuss the theme: "Novel Insights and Innovations in Biotechnology for Leading a Better Life". The conference will be held at New York, USA during October 19-20, 2017 wherein prompt keynote presentations, Oral talks, Poster presentations and Exhibitions are included.
International conference of Bio America 2017 is a Research-Knowledge bridge, that aims bring together multi-disciplinary luminaries for Thriving innovation in the Biotechnology. The Knowledge conferences have been carefully structured so as to share knowledge and thoughts through presentations and exhibitions.
As availing an opportunity to share knowledge and channels for extending businesses between industry and academics, Bio America conference subjected to discussion and throw light on latest researches on agricultural biotechnology, business models, pharmaceutical biotechnology, medical biotechnology, cancer biology, immunology, genetics, protein engineering, Tissue engineering, transgenic plant and crops, bioremediation, and Bioprocessing and biopharma manufacturing.