The Biotechnology Sector: A $50 Billion Industry with Innovative Products and Services

The US biotechnology industry is a significant player in the global market, with over 1,000 companies generating combined annual revenue of nearly $50 billion. Large companies such as Amgen, Biogen Idec, Genentech, Genzyme, Life Technologies, and Monsanto have established themselves as leaders in the industry. The biotechnology and pharmaceutical industries overlap considerably, with many drugs developed using biotechnology.

Key Takeaways:

• The biotechnology industry is driven primarily by the willingness of insurers to pay for new medical treatments.
• The profitability of individual companies depends on the discovery and effective marketing of new products.
• Small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research.
• The most successful uses of biotechnology so far have been the production of therapeutic drugs (biologics); genetically modified (GM) plants; and medical diagnostic tools such as DNA testing.
• Biotechnology companies frequently evolve from research departments at universities and are often run by scientists with an academic background.
• The industry is characterized by the manipulation of living cells and their components to make new products.

Statistics:

• The US biotechnology industry includes about 1,000 companies.
• Combined annual revenue of the biotechnology industry is close to $50 billion.
• The biotechnology industry is characterized by a high level of innovation, with new products and services being developed continually.
• Biotechnology companies frequently rely on advanced scientific knowledge, which can lead to the development of new treatments and products.

Sources:

• Research and Markets (http://www.researchandmarkets.com/research/c4a460/biotechnology_sect)
• First Research