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Health informatics Europe
| updated: 29 November 2000 | |
 Bioinformatic platform market is
$52 million a year and will reach $110 million by 2004
London, 30 November 2000 Research by Silico Research concludes that the market for bioinformatic platform software and services is currently worth $52 million a year and is growing by 35% a year as data volumes, increased confidence in the technology and the evolution of bioinformatic tools combine to drive growth in the market. The market is expected to reach $110 million by 2004. The new research from Silico Research was issued as part of its e-R&D Insights Programme. Companies competing in the bioinformatic platform sector include: Applied Biosciences, Compugen, Genomica, Genome Informatics, IBM, Informax, LION Bioscience and NetGenics. A raft of IPOs in recent months and investment in platform technology by large contract research organisations have left small platform vendors exceptionally well-capitalized to develop the next generation of platform technologies. "Don't expect to see a dot.com type of bust in this market any time in the near future," Commented Emmett Power Chief Executive Officer of Silico Research and lead analyst on the research. "IT, data and services vendors all see platform technology as an essential component of their product base and as a entry point into large pharmaceutical and biotechnology companies." This means that large amounts of capital will continue to be directed at the sector for some time to come. This is just as well because bioinformatic platform technology is one of the most challenging environments that a company can operate in today. Companies in the sector must address the twin challenges of assimilating the rapid changes in science whilst at the same time keeping up with developing information technologies including XML and data-mining technologies. "This sets an exceptionally high bar to participating successfully in the market." Other findings of the research include the clear shift away from outright purchase of platform technology by pharmaceutical companies towards milestone payment and royalty payment models. Platform technologies are increasingly delivered as part of an outsourcing contract with a CRO or a drug-discovery alliance with a biotechnology company. "Pharmaceutical and biotechnology companies are increasingly focusing in flexibility and risk-mitigation. The more they can shift the risk inherent in adopting new platform technology onto the vendor or onto a outsourcing company the more willing they will be to adopt the technology. Platform vendors must help pharmaceutical and biotechnology companies in this risk-reduction strategy or see customers move to more flexible competitors." Silico Research is a leading independent research and consulting firm, analysing technological change and its impact on the pharmaceutical, biotechnology and life science sectors. Silico Research's clients receive continuous research and analysis through Silico's customized continuous advisory services. Silico's Research Centre is located in London. Additional information about Silico Research can be found at www.Silico-Research.com. For further information contact: |
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