Extensive R&D in Bio-informatics Industry to grow by leaps

MCOS: he world bio-informatics market is at $1.4 billion and is expected to grow at an annual average growth rate of 15.8% to reach about $3 billion by 2010, with focus on Chem-informatics and Pharmaco-genomics. The top 20 bio-informatics companies have doubled their R&D expenditure from $40 billion in 2000 to $80 billion in 2005. This increased expenditure is due to the highly stimulated demand to come up with new molecules. Revenues would grow by 7% per annum for the next five years. R&D outsourced was about 40% of R&D expenses in 2004. Drug Majors sourced approximately 25% of R&D. Bio-informatics has comparative advantage in facilitating creation and commercialization of agricultural, industrial, pharmaceutical and environmental products. It can reduce drug discovery and development costs. The larger bio-informatics units shall be forced to reduce their R&D costs and encourage R&D initiatives with smaller bio-tech companies through collaborations and contracts. Presently the major industries are interested in a consolidation track forcing small firms to find ways to remain autonomous. Competition in some market segments are expected to be restricted as large scale acquisitions and mergers continue.World Bio-Informatics Market (2005-2010 Publ 20051205