Constricted Budgets and Consolidation Check Growth of Nucleic Acid Isolation Market.

Business Editors/Health/Medical Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 15, 2003

Biotechnology and pharmaceutical companies are likely to tighten their budgets with the phasing out of blockbuster drugs. This is detrimental to the interests of nucleic acid isolation companies, which are significantly dependent on them for sales.

New analysis from Frost & Sullivan (http://www.biotech.frost.com), U.S. Nucleic Acid Isolation Markets, reveals that this industry generated revenues totaling $233 million in 2002. Total market revenues are expected to reach $503 million in 2009.

Both instrumentation and consumables sectors of the nucleic acid isolation market have been affected by the recent budget constraints among pharmas, which has affected capital equipment purchases and reduced funds for reagents and consumables.

Instrumentation manufacturers can revive customer interest by developing incentive programs; for example, they can offer supplementary automated application consumables at discounts along with their core products.

"This could also prove to be a good opportunity for consumable-only manufacturers to develop supply relationships with instrumentation companies that do not offer their own consumables," states Frost & Sullivan Research Analyst Isaac Meek.

Although revenues for the total nucleic acid isolation market are not likely to suffer, the mergers among commercial clinical laboratories will reduce the number of customers in diagnostic segment. While on the research side, central funding agencies are not slashing their funds for sequencing projects, but are pumping that money into major sequencing centers.

"The major ultra high-throughput institutions will benefit from a shift in government spending habits as these centers can minimize overall project costs by capitalizing on economies of scale," notes Meek.

Due to the popularity of molecular techniques as common research tools, genetic methods such as cloning, sequencing, and amplification have penetrated the area of high throughput operations. The research community is expected to support new separation technologies that offer greater speed and convenience in high throughput laboratories.

Cost-conscious molecular biology labs are likely to choose manufacturers that can provide bulk consumables and reagents for sample preparation at low prices.

"Developing a value-based product line apart from premium products will offer consumers a cost-effective alternative while purchasing from a trusted and proven manufacturer," observes Meek.

Influential manufacturers can leverage their reputation to sell isolation kits at low prices and in large volumes, especially to government-funded institutions. Companies that do not possess considerable brand equity are likely to lose revenues significantly.

The U.S. Nucleic Acid Isolation Markets, a part of the Drug Discovery Technologies subscription, closely examines the competitive factors in the dynamic nucleic acid isolations market, and segments the market into consumables and instrumentation. The analysis includes detailed industry challenges, strategies, and market trends evaluated through extensive interviews with industry participants. Interviews are available to the press.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams, deliver market insights, and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff, spans the globe with offices in every major country around the world.

U.S. Nucleic Acid Isolation Markets

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