GENTECH archive 8.96-97
Fwd: European Biotechnology: A Fast Growing Market ...
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- From: Purefood@aol.com
- Date: Wed, 4 Dec 1996 08:01:08 -0500
From: 74250.735@CompuServe.COM (John Stauber)
To: email@example.com (Rose & Ron)
Date: 96-12-03 20:34:56 EST
--------------- Forwarded Story ---------------
Headline: European Biotechnology: A Fast Growing Market ...
Wire Service: BW (Business Wire)
Date: Tue, Dec 3, 1996
European Biotechnology: A Fast Growing Market Segment Closing The Gap With
LONDON--(BUSINESS WIRE)--Dec. 3, 1996--The biotechnology industry in
has a promising future, and continued growth is expected until the turn of
century. Moreover, biotechnology is expected to find applications in a
of further areas.
These are the conclusions of a study by Frost & Sullivan, a leading
marketing consultant with an international presence. The 650-page report
contains highly detailed profiles of 50 leading players in the European
biotechnology industry, along with market forecasts to 2002.
The major markets in which biotechnology has so far found applications
healthcare, agriculture, food processing and waste management.
The increased need for low cost, high efficacy drugs for the treatment
diseases for many indications, including oncology and central nervous system
disorders, will result in extensive use of biotechnology.
As the world's population increases dramatically, the need for higher
yields to feed people will make imperative the use of biotechnology in the
As people seek improved quality of life, the demand for better quality
products will have a positive impact on the development of food ingredients
additives to enhance the quality of food products.
The current trend for preserving the earth's environment will lead to
increased use of applications that will work toward that direction. For the
treatment of waste from various sources and in several forms, the
of biotechnology in the form of anaerobic digestion is believed to be one of
the most promising solutions to preserve the environment.
Although the seed of the biotechnology industry germinated in the U.S. in
the early 1980s, European biotechnology has grown considerably in the 1990s,
significantly closing the gap with the US. The recession of the early 1990s
a serious impact on the R&D spend-intensive biotechnology industry, but
resumed again after 1993.
The UK has been a leader in founding biotechnology companies. The UK
high capital resources and the investment community has been more willing to
invest in the high-risk biotechnology industry than some other countries.
With this background, the European biotechnology market experienced
growth in the 1990s, reaching a peak in 1994 and 1995. In 1995, the
biotechnology market grew by 17 percent, with sales of biotechnology-derived
products for that year estimated at $29.2 billion.
Between 1995 and 2002, Frost & Sullivan projects the value of the
biotechnology market in Europe will grow by over 20 percent a year, reaching
$106.5 billion in 2002.
The healthcare segment accounted for 67.7 percent of
biotechnology-dependent revenues in 1995. Food processing revenues
a further 26.7 percent. Far smaller were the contributions of agriculture
percent, and waste management at 2.6 percent.
However, these positions are forecast to change considerably - in 2002,
Frost & Sullivan predicts that food processing will account for only 16.9
percent, while revenues from biotechnology-dependant waste management
will account for 6.8 percent.
It is anticipated the European biotechnology market will become more
competitive in the future as more products, currently in the R&D pipeline,
the market. This is especially so for healthcare.
Typically, pure biotechnology companies are small in size, with limited
financial resources at their disposal. However, it is these companies which
have developed several technologies with great market potential, as the
entrepreneurs who run these companies focus from the very beginning on
exploring the possibilities of emerging technologies. There is, however, a
synergy between the small explorers and the larger companies who then take
these embryonic products onto marketability.
In the future, it is likely that these larger, established companies
have the capacity to do more of their own groundwork in the biotechnology
field. This can be anticipated from the recent consolidation amongst the
larger companies, which aggregates their strengths in R&D capabilities and
Many of the strategic alliances wrought by the leading European
companies are directed at well-established biotech companies in the US.
There are approximately 600 companies involved in the European biotech
market, compared to almost 1,200 in the US. In Europe, most companies are
small, employing less than 100 people. Furthermore, most are
companies, with no products on the market. This report is intended to serve
guide for companies to identify new market opportunities, and identify the
partners with which to form strategic alliances.
Companies participating in this market include: AgrEvo GmbH, Akzo Nobel
Ares-Serono, Astra AB, Axis Genetics plc, BASF Aktiengesellschaft, Bayer AG,
Biomass Recycling Ltd, BioNative AB, Biotrin Holdings Limited, Boehringer
Ingelheim GmbH, Boehringer Mannheim GmbH, Bristol-Myers Squibb
British Biotech plc, Cantab Pharmaceuticals plc, Carl Bro Group Denmark,
Biotechnologie Avanzate scarl, Celltech Group plc, Chiron Biocine,
Group plc, Chr Hansen Holding A/S, Ciba-Geigy Limited, Cortecs International
Ltd, Danisco A/S, Genset SA, Glaxo Wellcome plc, Hoechst Marion Roussel,
Hoffmann-La Roche Ltd, INNOGENETICS NV, Keygene NV, Koppert BV, Krger A/S,
Medac GmbH, MOGEN International NV, Monsanto Europe SA/NV, MorphoSys GmbH,
Nordisk A/S, Organic Waste Systems NV, Peptide Therapeutics Group plc,
Pharmacia Biotech AB, Plant Genetic Systems, PPL Therapeutics plc,
Rorer Inc, Royal Gist-Brocades NV, Sandoz Ltd, Schering AG, Skandigen AB,
SmithKline Beecham plc, Snamprogetti Biotecnologie SpA, Solvay SA, and
Frost & Sullivan is an international marketing consulting company that
monitors the biotech & pharmaceutical therapeutics industries for market
trends, market measurements, and strategies. This ongoing research is
to update a series of research publications and to support industry
participants with customized consulting needs. Free executive summaries of
Frost & Sullivan reports are available to the press.
Report No.: 3332-52 Publish date: August 1996 Price: $1995
For information in the United States, please contact:
Russ Pecoraro California 415/961-9000 ext. 488 415.961.5042 fax
firstname.lastname@example.org Or, visit our web site at: http://www.frost.com
For all other inquiries, please contact:
Kristina Menzefricke Stefan Gerhardt London Frankfurt
44.171.730.3438 49.69.235057 44.171.730.3343 49.69.234566
CONTACT: Frost & Sullivan
Russ Pecoraro, 415/961-9000 ext. 488
Kristina Menzefricke, 44.171.730.3438
Stefan Gerhardt, 49.69.235057
KEYWORD: NEW YORK
Copyright 1996 Business Wire. All rights reserved.