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U.S. AGRICULTURAL BIOTECH MARKET TO EXPLODE, HIT $1 BILLION IN 1997

U.S. AGRICULTURAL BIOTECH MARKET TO EXPLODE, HIT $1 BILLION IN 1997
 MOUNTAIN VIEW, Calif., Aug. 18 /PRNewswire/ -- Agricultural biotechnology markets will grow dramatically later this decade, with U.S. sales alone exploding from $100 million in 1991 to $1 billion in 1997 and over $1.6 billion by 1998, projects a study just issued by Market Intelligence.
 Market growth will accelerate steadily during the next decade. Annual growth will reach 75 percent in 1997, a 55 percent increase from current growth rates, according to the report, "Agricultural Biotechnology: Staggering Opportunities in World's Largest Market."
 Pesticides, which accounted for 74 percent of the total agricultural biotechnology market in 1991, will decline to only 12 percent by 1998 as other segments emerge. Hormones are expected to take the market by storm following their introduction in 1995 and account for half of total industry revenues by 1998.
 Vaccine and in-vivo microorganism market segments will also grow rapidly. Vaccines, which accounted for 20 percent of the market in 1991, will make up 30 percent of a much larger market in 1994 before declining to 17 percent by 1998. Their decline will be due to the meteoric growth of hormones. The in-vivo microorganism market will appear this year, gain 10 percent of industry revenues by 1994 and reach its peak of 21 percent in 1996. Although the in-vivo market segment will continue to grow, so will the market as a whole, and its market share will decline to 16 percent in 1998.
 Agricultural biotechnology is expected to be the largest contributor to improved per-acre food yields over the next 20 years. "Food factories" will eventually produce almost any food at any location through tissue cultures, using waste materials for fuel.
 Commercial application of agricultural biotechnology has so far fallen short of early expectations. Many early entrants lacked capital and failed to clearly locate a market for their products. Most crucially, the science needed to develop new products has proven more complex and time-consuming than first realized. Regulators were also unprepared for the new industry. Now, however, agricultural biotechnology is recovering in a climate of more realistic expectations.
 Bringing a new product to market, however, can still take many years and cost $50 million to $500 million. For small firms, expenses keep running although no products make it to market immediately. If a company lacks income independent of biotechnology or very deep pockets, the risks are tremendous.
 Small and medium-sized companies, typically responsible for a large number of innovative new products, are turning to sophisticated equity financing methods involving convertible securities, corporate partnerships and syndicated investments. Some have begun to concentrate heavily on non-biotech products that are more quickly profitable and much easier to license. Others have raised capital by licensing proprietary processes or products or selling exclusive future marketing rights. Smaller companies will pioneer more new and inventive methods to raise the money they need to survive until they bring their products to market.
 The need to better persuade the general public, regulators, politicians, environmentalists and others concerning the benefits of biotechnology will remain central to the industry's future development.
 Market Intelligence is an international high-technology research firm specializing in biotechnology and other healthcare markets. All Market Intelligence reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Since 1982, Market Intelligence has emerged as one of the leading publishers of high-technology market research reports.
 Code: 660-52 Price $1,895
 Total Agricultural Biotechnology Market:
 Revenue Forecasts (U.S.)
 1988-1998
 Year Revenues Revenue
 ($ Million) Growth Rate
 (percent)
 1988 60.0 --
 1989 71.2 18.7
 1990 84.7 19.0
 1991 101.3 19.6
 1992 125.9 24.3
 1993 159.4 26.6
 1994 216.4 35.8
 1995 334.7 54.7
 1996 562.2 68.0
 1997 984.3 75.1
 1998 1,625.6 65.2
 Compound Annual Growth Rate (1991-1998): 48.7 percent
 Note: All figures are rounded. Source: Market Intelligence
 -0- 8/18/92 R
 /CONTACT: Amy Arnell of Market Intelligence, 415-961-9000, or fax, 415-961-5042/ CO: Market Intelligence ST: California IN: MTC SU: ECO


KF-RM -- SJ001 -- 0956 08/18/92 12:27 EDT
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Date:Aug 18, 1992
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