GENTECH archive 8.96-97


Fwd: European Biotechnology: A Fast Growing Market ...

Forwarded message:
From:	74250.735@CompuServe.COM (John Stauber)
To: (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

    Business Editors
    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
agriculture segment.  
    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
at 3
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
as a
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 Or, visit our web site at:

    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


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