NEW YORK, Feb. 20-Revenues for biomedical research reagents in the United States climbed to $981 million last year and may be worth more than $2 billion by 2007, according to a new report from Frost & Sullivan.
The report, "U.S. Research Biochemical Markets," tracks the growth of demand for biochemicals like antibodies and enzymes that are used in immunochemistry, cell culture work and genomic research.
The market is strong, but the report warns that it is also changing rapidly. Patent expirations are transforming the business. As patents expire, reagents become more widely available as products. Competition intensifies, prices drop, and profit margins can dwindle.
As a result, biochemical makers will face pressure unless they find ways to protect their patents and intellectual property.
One strategy: to use old products in new combination technologies.
Another strategy: strengthening brand image. "Market leaders in research biochemicals industry have very well-respected, long standing brand names," said Frost & Sullivan analyst Brad Peters in a statement released by the company.
The consulting company also recognized six companies in the biochemical industry with "Marketing Engineering Awards": Applied Biosystems, Invitrogen, New England Biolabs, NuGEN Technologies, Promega, and Roche Applied Science.