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Biotechnology Sector Industry Profile Excerpt
| SIC Codes: 2836 NAICS Codes: 325414, 541711 Page Length: 10-12 Last Quarterly Update: 5/5/2008 View Sample Industry Profile |
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The US biotechnology industry includes about 1,000 companies, with combined annual revenue close to $50 billion. Large companies include Amgen, Monsanto, Genentech, Applera, Genzyme, and Biogen. Because many drugs are now developed using biotechnology, the biotechnology and pharmaceutical industries overlap considerably. The industry consists of a few very large companies and many very small ones, and is fragmented by type of product. Most companies have annual sales under $50 million.
COMPETITIVE LANDSCAPE
Demand for biotechnology products and services 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. Because the market for potential products is so large, small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research.
PRODUCTS, OPERATIONS & TECHNOLOGY
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.
The biotechnology industry is characterized by the manipulation of living cells and their components to make new products. Some companies make only research tools that are sold to other biotechnology companies. Because they rely on advanced scientific knowledge, biotechnology companies frequently evolve from research departments at universities. Genentech, the first biotechnology company, evolved from studies of bacterial cells at Stanford and the University of California. Most biotechnology companies use a ...
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