Industry Analysis & Industry Trends
There are a large range of firms engaged in biotechnology activities. On one end are small, dedicated biotechnology companies that are research and development (R&D) intensive and operate primarily with venture capital, grants, initial public offerings and collaborative agreements. On the other end are large, diversified companies with significant in-house R&D resources and well-established production, commercialization and distribution processes.
IBISWorld estimates that Global Biotechnology industry revenue will reach $228.6 billion in 2012, having increased at an average rate of 10.4% per annum over the past five years. Growth in 2012 is expected to continue its recovery, with revenue rising by 9.9%. This follows a relatively modest 8.7%.. read more
Starting a New Business
Barriers to entry in the Global Biotechnology industry are at a medium level. The level does not reach 'high' because of the significant number of new product developments that create markets for new firms; small firms with only a handful of employees are often responsible for innovative biotechnology products. The out-sourcing of some R&D functions, from larger biotechnology firms or pharmaceuticals manufacturers, as a means of cutting costs also allows smaller companies to specialize in certain industry tasks.
However, the industry is maturing speedily and a number of major players are well established and acquisitive of smaller companies in complimentary sectors and with a full product pipeline... read more