Biotechnology industry expected to grow unceasingly
In spite of tremendous growth Biotechnology has shown in a short period, experts are of the opinion that all this growth witnessed so far is a tiny fragment of potential prospects of biotechnology. According to IBISWorld, $92 billion biotechnology is going to reach $146 billion by the year 2016.
Biotechnology: Unending source of new products
In spite of the fact that the industry is still in nascent stage, its products have already revolutionized medicine, agriculture and industries. Also, it must be remembered that there are hundreds of new products being developed in laboratories with promising results. When the market conditions were unfavorable, biotechnology start ups obtained funds from VC investments, which were eager to invest because of the high potential of the products being developed.
The companies also chose the route of mergers and acquisitions to leverage their core competencies and reduce costs in the period of unfavorable investor confidence during 2008 to 2010. Smaller companies merged with larger companies to get higher market shares and get access to resources. These developments have made biotechnology firms leaner and left them in better condition to proceed ahead with new efforts at research and development.
Another factor that is favoring the growth of biotechnology companies is the benefit of federal funding and support for biological defense projects. Pharmaceutical companies have acquired biotechnology firms in efforts to develop new formulations based on this revolutionary technology. Many companies are on the verge of breakthrough developments in developing drugs for conquering diseases like cancer and diabetes with the help of biotechnology.
Healthcare programs of federal government also support these companies to develop generic biological medicines and give them tax breaks. The role of biotechnology in improving the agriculture is evident; it offers solutions for increasing food production without degrading soil quality or posing threat to environment. The sustainable agriculture is clearly possible as shown by the new products and processes developed by biotechnology industry.
With great promise of improved products in healthcare and agriculture, biotechnology is set to break its own record of tremendous growth seen so far!