The Biopharma industry is an industry dependent on investment, therefore it is extremely vulnerable to the economic climate. When the economy is booming so is the Biopharma industry, including pharmaceutical consulting firms, life sciences consulting firms, and pharmaceutical sales consulting firms all over the country. But when the economy is in a downward trend, the biotech industry, not to mention service suppliers and vendors, are all affected.
In today’s bad economy we all know this to be true. New technologies and product ideas have taken a back seat to stock market figures. Serious lay-offs, outsourcing, and mergers have cut the industry down to shreds. Outsourcing has expanded many companies’ short term sales, but has also abandoned their long term investor equity in the process. There are several powerful trends taking place as we speak, within the Biopharma industry, as identified by life sciences consulting firms all across the country.
Biopharma product approvals have been slipping for almost 5 years now, especially recombinant drugs, however, the next 5 years seem more promising. As more mergers take place and competition becomes more and more fierce, many companies will need to restructure or get bought out. This trend will increase private funding in the industry, while larger companies will get the rights to market the smaller companies’ products.
Another trend that has developed is the growing economic power of China. China’s manufacturing indexes have decreased considerably; however, China still presents a strong positive growth rate, a large investment community, and good cooperation with Western companies. Right now it is home to more than 500 Biopharma companies, and is spreading throughout the rest of Asia. India’s Biopharma Industry is growing everyday. Their clinical research rate is growing at a such a staggering rate that soon they will be in the Top 5 worldwide.
These are great signs for the BioPharma industry as their growth will be the barometer of their success. Also, their commitment to innovation will be another crucial factor if this industry strives to stay profitable. BioPharma companies are starting to spend way more capital in the research of smarter biofuels which are more economical than wind, solar, and hydro options. However, as an increased use in disposables in Biopharma manufacturing is taking place, their manufacturing departments are diminishing in size as the need for capacity is decreasing. The Biopharma industry is as strong now as it has ever been, but will it last the test of time after this economic downturn? I guess only time will tell.
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