UK Biotechnology Industry

An Analysis

Publication Date	October 2005
Publisher	RocSearch
Product Type	Report
Pages	30
ISBN Number	not applicable
Product Code	ROC00063

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Summary

The UK is the largest biotech market in Europe. UK's pharmaceutical and healthcare industry is the single largest user of modern biotechnology. Biotechnology has increasingly gained priority in the country because of it's excellence in research, the support of foreign and domestic investors, concentration of biotechnology clusters, and a comprehensive regulatory framework. Key Findings

The industry in the UK grew by 19% (in real terms) over the period 2001-003, reaching a value of US$5.89 billion
There were about 460 biotechnology companies in the UK employing 22,400 people in 2003. In 2003, UK companies had about 224 new drugs in clinical development or awaiting approval.

This report contains a detailed study about the UK Biotechnology Industry and its various segments. UK's biotechnology sector is the largest in Europe and the second largest in the world after the US. The industry reported a revenue growth of 19% during 2001-2003. The market is forecast to reach a value of US$8.5 billion in 2005. The report employs Micheal Porter's Five Forces Analysis model and also uses the PEST Analysis framework for analysis. The report also profiles the leading firms of the industry namely Acambis, Cambridge Antibody Technology and Vernalis and also compares their competitive positioning. It also talks about the strategies adopted by these firms in detail. Moreover, the report includes a brief financial analysis to ascertain the performance of the competing firms. The report finally ends with a broad future outlook regarding the industry and its performance overall.

Content

1. Introduction 1.1 Industry Definition The UK leads the use of biotechnology for industrial purposes among European countries. 1.2 Industry Segments Biotechnology products can be classified into the following sectors: Healthcare Agriculture and Food Environment 1.3 Phases in Clinical Trials 2. Market Dynamics 2.1 Market Overview UK's biotechnology sector is the largest in Europe and the second largest in the world after the US. The industry reported a revenue growth of 19% during 2001-2003. The market is forecast to reach a value of US$8.5 billion in 2005. 2.2 Factors That Have Driven Change Excellence in Research Venture Capital and Partnerships Governmental Support for R&D Biotech Clusters Protective Regulatory Framework 2.3 Major Issues and Implications Strict EU Clinical Trials Directive Bitter Public Attitude Pre-emption Rights Restrict Biotech Fundraising Inadequate Investment in early Clinical Development Limited Bio-manufacturing Capacity 3. Industry Growth and Events 3.1 Trend Analysis Convergence between Pharmaceuticals and Biotechnology Restructuring of the Industry R&D Spending Trends Strong Product-development Activities 3.2 Growth Opportunities Medicinal Drug Development Tissue Engineering and Stem Cells Research Neuroscience 3.3 Competitive Forces 4. PEST Analysis 4.1 Political Factors Government Initiatives to Promote Biotechnology Limited Funds Available for New Research Effective Patent Environment Government Expenditure on NHS Leading to Increased Demand 4.2 Economic Factors Financial System in Line with Industry Requirements Strong British Pound, Hurdle to Biotech 4.3 Social Factors Favorable Demographic Trend Likely to Increase Demand Hostile Public Attitude towards Animal Testing 4.4 Technological Factors Use of Bioinformatics Innovative Technologies for Improved Research Nanobiotechnology 5. Michael Porter's Five Forces Analysis 5.1 Buyers Power Pharmaceutical industry: Size and players Industry Attracting More Buyers 5.2 Suppliers' Power Government Support Availability of other Markets for Venture Capital Qualified Scientists and Academicians 5.3 Rivalry among Competitors Consolidation of the Industry 5.4 Threat of New Entrants Capital Intensive Industry Regulatory Environment Government support to Local Companies Industry Clusters 5.5 Threat of Substitutes Chemical Properties Reduce Chances of Substitution Conventional Medicines 6. Leading Companies in the Industry The top three biotechnology companies of UK have been profiled in this section; Acambis, Cambridge Antibody Technology and Vernalis. 6.1 Financial Highlights 6.2 Market Capitalization The section compares the market capitalization level of the three competing firms in the month of October 2005. 6.3 Revenue and Net Income Comparison Comparison of annual revenues and net incomes of Acambis, Cambridge Antibody Technology and Vernalis in 2004. 6.4 Stock Performance The section compares the stock performance of Acambis, Cambridge Antibody Technology and Vernalis. 6.5 Analysis of Strategies Detailed analysis of the competitive strategies of Acambis, Cambridge Antibody Technology and Vernalis. 7. Industry Outlook The UK biotechnology market is expected to grow at a rate of about 45% to reach about US$10 billion in 2009. The UK government is to spend US$1.9 billion on biotechnology till 2008. Appendices Appendix I International Conferences and Annual Meetings 2nd Annual Post-Marketing Studies Clinical IT Congress 4th Annual World Pharma IT Congress Appendix II Industry Associations and Organizations Association of the British Pharmaceutical Industry (ABPI) BioIndustry Association (BIA) British Generic Manufacturers Association List of Tables/Figures Tab 3.1 Selected UK Biotech Industry Restructuring (2003) Tab 6.1 Top Biotechnology Companies by Revenues (2004) Tab 6.2 Financial Highlights (2004) Fig 2.1 Biotechnology Industry Revenue Growth (2001-2003) Fig 2.2 Revenues by Sector as % of Total Revenues (2003) Fig 4.1 Exchange Rate (Oct 2003-Oct 2005) Fig 6.1 Market Capitalization (Oct 2005) Fig 6.2 Revenue Comparison (2004) Fig 6.3 Net Income Comparison (2004) Fig 6.4 Stock Comparison (Nov 2004-Sep 2005)