Biotechnology Industry By 2025
The word Biotechnology strikes to most people as a declining sector with zero career opportunities. But the truth is, they are not aware, they don’t read & research on the latest happenings & trends in the industry. Those who are still living with this belief this article is especially for them.
Those who are not aware, Biotechnology has already begun to alter a few traditional industries such as food processing and fermentation. It has also led to the development of entirely new technology for industrial production of antibiotics, hormones and other chemicals, food, and energy sources and also the processing of waste materials. The basic requirement is that industry must be staffed by trained biotechnologists who not only have a sound knowledge of biology but a thorough grounding in engineering methods.
Branches of Biotechnology
Biotech companies primarily use biotechnology methods for the production, design or delivery of their products or services. The major domains where biotech companies mainly work is in the fields of agriculture, crop production, medicine, non-food use of crops and heavy industry. The fields of biotechnology are categorized into four groups, named by color. Biotechnology which deals with medical and health care is termed as Red biotechnology. White biotechnology deals with industrial processes and Green biotechnology are about agricultural processes. Blue biotechnology concerns about the application of molecular biological methods to marine and freshwater organisms. It makes use of these organisms, and their derivatives, for purposes such as controlling the proliferation of deadly water-borne organisms, increasing seafood supply and safety and developing new drugs. Bioinformatics has been added to the list and is referred to as Gold Biotechnology, a field which is an amalgamation of biological science & computational science.
Global Biotech Economy at a Glance
Biotechnology companies are among the most bountiful breeding grounds for great science and historical ideas. A large proportion of the company’s value is driven by innovation and thus it is no surprise that management announces the world about the latest “quantum leap”. After fifteen years of shuffling, the biotech zone, globally, as well as in India has seen a bull run of sorts. Some 10 healthcare companies went public on the NASDAQ in 2015. In the meanwhile, India had become the second highest number of USFDA-approved plants by becoming the world’s 12th biggest biotechnology economy. When one scout through the vast, virtual world of stock market analysts and investors, the one thing that strikes the eye is the countless appearance of the word “biotech”. Dig further into any posting on biotech and the computer screen gets almost deluged with recommendations for buying shares of biotechnology companies. By the time one press “quit”, the message hits home overwhelmingly: the global biotechnology industry is booming and in an unprecedented way.
The news is like a soothing balm for the recession-hit world economy. Several millions of victims of wearing diseases cheer for the discovery of every new drug or even at the approval of a drug, and this also adds value to the biotechnology companies. Since the last few years, such approvals and discoveries are happening at a prodigious pace, especially in the US market. Further, the expanding list of generic drugs, produced mostly by small companies cannot be ignored.
Although a few years back, various biotech companies suffered from nosediving shares, the industry as a whole, once again started heading itself towards growth. Surprisingly biotech startups have already started contributing to the growth of the sector and discretely, these companies have stimulated themselves for a profitable run. According to Forbes, biotech startups have succeeded to raise $758 million in funds through shareholders. Further, according to the news by Research and Markets (2017), the global biotechnology market is anticipated to reach USD 727.1 billion by 2025.
The Big Biotech Future Forcast
Certain crucial themes have emerged in the biotechnology market and this is projected to hustle the growth in this industry to a lucrative extent. These key themes include recovering medicine and genetics in diagnostics. Development of regenerative therapies is being focused by a plethora of companies focusing and this is expected to drive sector growth through to 2025. Technological advancements relating to the permeation of artificial intelligence in this industry is anticipated to fuel growth with potential avenues. In order to comprehend individual cancer cases, the companies are involved in unleashing machine learning while endorsing clinical trials.
The health sector is expected to exhibit robust advancement in the forecast period owing to technological expansions and extensive application of this field in several aspects of healthcare. The constant introduction of novel biotechnological products to provide to healthcare units that are engaged in diagnosis, projection and biopharmaceutical expansion and this is predicted to boost the market. Shrinking costs and escalation in the number of amenities in this sector have the probability to drive segment with lucrative avenues.
Biotech companies and pharmaceuticals of North America have undergone great accomplishments in recent years resulting in a grander share. Introduction of technologically superior products and incidence of various biotechnology grounded programs such as the University of California Biotechnology Research and Education Program and the UC Davis Biotechnology Program are prenominal in driving the progress of the sector in the forthcoming years. Due to varying health care set-up in this province which drives the claim for these products, the Asia Pacific market is predicted to propagate at the most profitable pace. Strong governmental funding and recruitment of well skilled Chinese scientists with the cooperation of their administration have made it promising for China to hastily build up dimensions in the area of regenerative medicine. The arena of biotech, however, has not been without controversy.
In the 1970s, researchers had to face certain constraints as they were forced to halt performing specific types of experiments on DNA, and also a few countries banned the utilization of genetically modified agricultural products. More recently, we’ve seen the controversy over cloning as well as stem-cell research. In the 1980s, definitely the vastest development in the field of biotechnology arose, when, the U.S. Supreme Court dictated to permit for patenting of genetically modified life forms. This suggests that intellectual asset will always be at the pole position of biotechnology. However, some debate that the span of patent protection actually outlines the biotech industry.
Because of extremely high research and development costs paired with very little revenue in the years of development, a collaboration of several biotechnology companies with larger firms is required to complete the development of the product. Over the preceding decade, the biotech industry, in consort with the hundreds of smaller companies functioning in it, has been dominated by a small handful of big companies. Similarly, marketing is dignified for a new major paradigm. The marketing role will be taken over by the consumer, just as the financial industry is likely to be transformed by IPOs through the Internet. Increasing transparency in the development of drugs and nearly instantaneous flow of information about a drug’s effects help to make everyone an educated consumer.
This business model is very different from what the hefty pharmaceutical companies require today, as they reminisce our history of low-tech, low-cost products and target for the high-tech and low-cost future. This may sound naive, but the present day pace of growth substantiates the optimism that we may get there in a couple of generations.
Nevertheless, this expedition from the low-tech, low-cost bygone to a destiny of a high-tech, low-cost future takes a bell-shaped trail, with half-tech, high-cost as the halfway point on this voyage. As it is reaching the peak cost structure, the enormous pharma companies must perceptively carry on to invest greatly in what is presently inefficient but are one day going to become a more proficient R&D process in order to maintain their standpoint. Moreover, the cooperation ensuing from consolidation will bestow the cash flow to such investments, especially during the dry patches of research output.
While transformation going on, biotechnology industry, with its quartile-century of experience in risk managing and project financing, is preferably suited to come across these challenges. The services and products emerging out of the sector are noteworthy in the progress and development of the world, and it is also mainly the reason why the industry will remain to be a dynamo in terms of lucrativeness.
Biotechnology – The Need of the Hour
Furthermore, the biotech sector is envisaged to drive momentous progress in the industry by presenting the room for partnerships. Development of innovative techniques and their application is centered by the companies, and this is enhanced by collaborating with the erstwhile participants. Together with government-funded institutions and various other autonomous bodies, the organizations such as the DBT (Department of Biotechnology) characterize the biotechnology sector and thus endorse funding to support R&D and also the endeavor to develop new products.
Owing to the increasing population base in China, India and the US, the need for food and agricultural products including rice, sugarcane, wheat, and beans is expected to elevate the significance of these produces. In addition, considerations such as low yield of crops, limited availability of agricultural land, shortage of water and pest attacks are furthermore encouraging the researchers to participate in massive R&D.
The increasing demand for these therapeutics and diagnostic solutions on the principles of DNA sequencing, recombinant technology, and red biotechnology is expected to stimulate the progress. Rising prevalence of diseases such as cancer, hepatitis B and other orphan disorders is anticipated to trigger demand in this area. As the prices of DNA sequencing go down, it is expected to dish up this sector as a high impact bestowing growth driver. It is anticipated to persuade manufacturers and researchers to increase R&D creativities, aimed at understanding genetic variations and developing a therapeutic way out for chronic diseases such as diabetes, cardiovascular diseases, and cancer, as these diseases have a large worldwide prevalence. However, in addition to the optimization of sequencers and their software, the contribution of governments and also collaborations between medical specialists and these companies will be of chief importance for the victory of DNA-sequencing technology.
The biotechnology industry is fragmented in nature. This market embraces many small and emergent players along with well-established main players. Large firms are directing small firms with a functional strategy of procurement in order to sustain the standpoint in the market. This acquisition by the company targeted at the addition of recombinant-based influenza vaccine to its product portfolio.
The largest share was bagged by the health-associated applications as a result of the extreme use of allied products in the healthcare sector. One of the crucial factors accounting for the abovementioned supposition is the increasing occurrence of chronic diseases, which heighten the pressure for novel drug development. Moreover, increasing demand for the personalized drug is further expected to propel the growth of the sector during the foretold period. Bioinformatics is projected to witness the wildest growth in the forthcoming years as a result of significant developments in this field. Considerable developments include algorithm designing for effective storage and management of genomic and proteomic data generated through the studies carried out on human, animal or plant genomes.
In terms of revenue share, nanobiotechnology ruled in 2016. Nanobiotechnology finds chief application in drug delivery therapies for chronic disorders such as cancer. It comprises the development of gold nanoparticles, nanoparticle-based chemotherapeutic drugs, and quantum dots for molecular diagnosis and also nano-biosensors which aid in optical imaging and drug delivery. Growing R&D carried out projects in several companies in uncovering new avenues such as microfabricated systems and devices, which are used in the treatment of several acute ailments, and this is a key driving factor of this segment.
Major drug companies take possession of the smaller ones in order to hold on to their market share. In a complex play of market forces and scientific advancement, the growth of the biotechnology industry is making a record that can compete with the information technology industry boom of the 1990s.
Biotech has controversially been unfolded as a preferred investment domain, where investment is done with the most common sources. The pace at which money is pouring in this sector; this quite assures the analysts that this sector will be able to maintain its blue-chip status in the imminent years as well. This has also led to the surgence of R&D spending by biotech companies. According to the Evaluate Pharma, which is a principal research body committed on the biotechnology industry, the value of R&D allegiance in the US rose up by 46 percent in 2014 as compared to 2013 and the same growth rate is expected in the coming years as well.