Global biotechnology market set to exceed $320 billion by 2015, says GIA

The biotechnology industry was adversely affected by the global financial crisis, with several leading biotechnology companies in the USA and Europe reporting fall in revenues amid restricted capital inflows, and project cancellations and delays, notes a new report from Global Industry Analysts Inc (GIA), which nevertheless forecasts that the market will grow to exceed a value of $320 billion by 2015.

The industry, however, recovered strongly from the crisis with a number of major biotechnology companies registering profits largely due to the adoption of new efficiency and cost-saving measures. Improving economic conditions also led to an increase in funding for the industry, although majority of this capital was raised by a few leading companies. A number of smaller companies continue to face problems in raising funds for R&D purposes. The funding scenario is unlikely to change drastically in the near term future, as venture capitalists continue to adopt cautious approach to ensure risk-free investments, says GIA.
The global biotech industry is led by the USA, followed by advanced European countries such as the UK, France, Spain and Germany. Developing countries, especially India and China, are forecast to emerge as major agricultural and industrial biotechnology markets owing to rapid increase in population and income levels. The two countries are emerging as key markets for biotech drugs due to their rich talent pool and low cost of investment.

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