REPORT #09-001
                                         Prospering in a Down Market:
Report Highlights
Prospering in a Down Market: Strategies for Life Science Suppliers
REPORT #09-001

Methodology                                                            Report Objectives
A Highly-Qualified Survey Population (continued)
                                               A Breadth of Scientific Kn...
Other Recent Publications*
Life Science Marketing

About BioInformatics, LLC                                                    Our strength lies in our ability to integrate...
REPORT #09-001                                                                                             ...
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Prospering in a Down Market: Strategies for Life Science Suppliers


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During this tumultuous time in our industry, the opportunity for life science suppliers to thrive—rather than survive—will be predicated on a detailed understanding of how labs will allocate 2009 funds. This report, scheduled for release in March is designed to provide guidance, backed by hard data, as to how scientists plan to cut corners, modify experiments and change purchasing behaviors in response to shrinking budgets.

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Prospering in a Down Market: Strategies for Life Science Suppliers

  1. 1. EXECUTIVE SUMMARY REPORT #09-001 Prospering in a Down Market: March 2009 Overview Print: $3,200 $2,700 Strategies for Life Science Suppliers Electronic (.pdf): $5,200 $4,500 Enterprise: $7,940 $6,750 This pre-publication discount price is only available until March 15, 2009! Overview Report Highlights With an estimated $21.5 billion in federal research and themselves, and what types of incentives, discounts and development (R&D) funding signed into law on February packaging would entice a lab to purchase more. The study 17th, many suppliers are breathing a sigh of relief that the also includes feedback as to whether or not scientists will life science market will be immune from the global economic turn to vendors for advice—on how to conserve reagents, crisis. But it is unclear how quickly these funds will be how to preserve the shelf-life of instrumentation and how to released, what programs will be funded, and how much of go “green,” thereby counting on suppliers to become more this infusion will translate into purchases of instruments, involved in promoting efficient operations in the lab. kits and reagents. In the meantime, pharmaceutical, biotechnology, academic and government labs continue to With a fifteen-year tradition of informing life science react to the deepening recession with budget freezes and supplier strategy, BioInformatics’ March release of this staff reductions. In fact, 65% of the scientists surveyed report will make the first step of decision-making—finding Methodology & Demographics report that their research has already been affected by the out how customers plan to spend their money—both timely downturn in the economy. and accurate. In light of budget cuts and in the spirit of collaboration with life science suppliers, Prospering in a During this tumultuous time in our industry, the opportunity Down Market: Strategies for Life Science Suppliers will be for life science suppliers to thrive—rather than survive—will available at a pre-release price of $2,700 (print copy only), be predicated on a detailed understanding of how labs will $4,500 (electronic plus print copy), or $6,750 (enterprise) allocate 2009 funds. This report, scheduled for release in until March 15, 2009. A comprehensive study packed with March is designed to provide guidance, backed by hard data, responses from the people who have budget authority and/or as to how scientists plan to cut corners, modify experiments make purchasing recommendations in the lab, this report is and change purchasing behaviors in response to shrinking Company Information mandatory for the life science supplier who intends to come budgets. With unparalleled access to the voice of the out ahead in 2009. customer, BioInformatics, LLC analyzes in this report the broad scope of how scientists plan to control lab costs, what Contact us at 703.778.3080 x13 to review the products will be affected and the degree of concern scientists study questionnaire fielded to more than have about the economic climate. 500 U.S. life scientists. Providing a roadmap for the life science supplier, this study compares and contrasts FY2008 (actual) and FY2009 How This Report Can Be Used (projected) budgets, revealing anticipated trends and changes. Expenditures for capital equipment (greater than • Prepare to answer the urgent questions from Boards $25k), instrumentation ($25k or less) and consumables of Directors, analysts and investors. are detailed, and sources of funding for research and Order Form drug discovery are listed for both years. Fourteen product • Pinpoint areas of growth, stability and decline by categories are examined using multiple variables, including market segment, region and product category current suppliers, price points that increase likelihood of switching and projected expenditures through FY10. • Reposition marketing and sales resources across Additionally, the respondents provide insight as to how their major product categories. labs are adapting to this crisis—65% of those surveyed say their organization has already implemented a hiring freeze • Tailor marketing programs to enhance customer and 63% are delaying or canceling non-essential purchases loyalty and prevent switching to lower cost suppliers. for their labs. • Focus R&D and Product Development on areas of Quick responders will win in this tight economy. Prospering growth. in a Down Market: Strategies for Life Science Suppliers 2111 Wilson Blvd is not only a compilation of how life science customers Suite 250 are planning to allocate 2009 budgets; it also outlines in Arlington, VA 22201 detail how scientists expect suppliers to respond. Scientists BioInformatics www.gene2drug.com share their opinions about how suppliers can differentiate market insights from gene to drug 703.778.3081 (fax) Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 1 of 7 ©2009 BioInformatics, LLC
  2. 2. Report Highlights Prospering in a Down Market: Strategies for Life Science Suppliers REPORT #09-001 Overview I. The Impact of the Economic Crisis on Laboratory Budgets IV. The Adoption of Cost-Saving Lab Practices • Fiscal year starts/ends • Cost saving measures employed • FY08 Lab budget • Planned Cost saving measures • FY09 Lab budget Bulk ordering • Percentage spent on Change direction of inquiry Capital equipment (>$25,000) Conservation measures Instrumentation (<$25,000) Decrease/stop long-term experiments Report Highlights Consumables Defer capital equipment purchases Other Delay/cancel nonessential purchases • Sources of funding FY08 and FY09 Downsize staff Percent of funding by source Halt new initiatives Anticipated change in FY09 Increase energy efficiency Anticipated change in through 2011 Increase the use of core facilities Lease instrumentation II. Scientists’ Reactions to the Current Economic Climate Outsource work Participate in “reagent rental” programs • Impact economic recession on current research Methodology & Postpone or suspend projects Demographics • Level of concern Postpone or suspend specific experiments Perception of overall impact compared to other Purchase through alternative channels Specific budget cutbacks in the lab Purchase/acquire used instrumentation Specific budget cutbacks in the institution Purchasing groups • Overall impact on purchasing Reduce/cease experiments with animals • Changes in grant applications Rent instrumentation for the duration of a project Reuse products III. Anticipated Changes in Laboratory Purchases in 14 Product Categories Share resources with other labs Company Information Standing orders • Products in use/Primary Supplier Switch to less expensive alternatives Cell biology instruments—Flow cytometer-based • Interest in used lab equipment Cell biology instruments—Microscope-based • Impact of cost saving measures on service contracts Cell biology kits and reagents • Attractiveness of special offers from suppliers Cell culture media and reagents • Interest in assistance/advice of suppliers Computer hardware • Credibility of supplier advice Gene expression analysis products • Interest in environmentally-friendly products High throughput screening and analysis systems Image analysis systems Additional Analysis by Instrumentation for genomic analysis Years of experience Instrumentation for protein analysis Order Form Lab size Laboratory plasticware Purchasing authority (consumables) Nucleic acid purification and separation products Purchasing authority (instrumentation) Protein purification and separation products Product category RNAi products Market segment • Anticipated change in purchases by product category U.S. geographic region • Planned capital equipment purchases by product category • Potential for customer switching Appendix A. Verbatim responses to the questions: • Despite this economic recession, is your lab planning on adopting new technologies this year? Why or why not? If so, which technology(ies) will your lab will be adopting? • Do you think your research or the research in your field will change due to policies implemented by the new presidential administration? Why or why not? Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 2 of 7 ©2009 BioInformatics, LLC
  3. 3. Methodology Report Objectives Prospering in a Down Market: Strategies for Life Science Prospering in a Down Market: Strategies for Life Suppliers, BioInformatics, LLC’s first report of 2009 Science Suppliers is based on responses to a 43-question Overview provides detailed insight into each of the following online survey conducted by BioInformatics, LLC. The topics: questionnaire was completed by 530 life scientists in the • Understand current sources of funding for research U.S. between January 30 and February 2, 2009. To be and drug discovery and what effect the current eligible to complete the questionnaire, all respondents economic situation will have on each, including a were required to demonstrate knowledge of the FY2008/FY2009 comparison. laboratory’s annual budget and be regular users of at least one of the 14 specified product categories. The questions • Measure life scientists’ near-term level of concern were answered by highly-qualified members of The with the impact of the economic crisis on their lab's Report Highlights Science Advisory Board™. BioInformatics sponsors The operating budget. Science Advisory Board™, an online community of more • Correlate level of concern with planned purchases in than 40,000 scientists engaged in basic biological research, 14 product categories. clinical research and drug discovery and development. These experts have agreed to make themselves available • Identify strategies life scientists intend to employ to to answer questions including emerging areas of research, “stretch” budgets and suggest effective positioning the tools and techniques used in their labs, and their and marketing programs for suppliers. satisfaction with their current suppliers. Methodology & Demographics A Highly-Qualified Survey Population The 530 scientists were pre-screened to ensure a representative sampling of the U.S. life science market reflective of our clients’ product offerings in 14 product segments. Company Information All Major U.S. Market Segments Represented Perspectives From Across the Life Science Spectrum Government Basic research 71% 8% Drug discovery/development 32% Preclinical research 18% Translational research 17% Academic Industrial Clinical research 16% 53% 39% Order Form Molecular diagnostics 12% Other 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% (continued) Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 3 of 7 ©2009 BioInformatics, LLC
  4. 4. A Highly-Qualified Survey Population (continued) A Breadth of Scientific Knowledge and Job Responsibilities Overview Molecular Biology 49% Staff Scientist 29% Biochemistry 41% Principal Investigator 25% Cell Biology 41% Lab Director/Supervisor/ Biotechnology 26% 19% Coordinator Drug Discovery/R&D 23% Post Doctoral Fellow 12% Genetics 21% Report Highlights Immunology/Virology Professor/Teacher 11% 20% Protein Chemistry 17% Laboratory Technician 3% Microbiology 16% Other 3% Oncology 15% 0% 10% 20% 30% 40% 50% 60% 0% 5% 10% 15% 20% 25% 30% 35% Methodology & The Voice of Experience…With Purchasing Authority Demographics Less than 5 years 0% 5 to 10 years More than 25 years 15% 17% 21 to 25 years Company Information 15% 11 to 15 years 29% 16 to 20 years 24% Budget Authority—Instruments Budget Authority—Consumables Order Form End-user only End-user only 3% 3% Evaluate consumables and make recommendations I have budget authority 37% for and/or authorize Evaluate these purchases instrumentation and 43% make recommendations I have budget authority 54% for and/or authorize these purchases 60% Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 4 of 7 ©2009 BioInformatics, LLC
  5. 5. Other Recent Publications* Life Science Marketing Overview #08-047 The Brave New World of Scientific Publishing November 2008 154 Pages #08-019 Enabling Discovery: The 2008 Life Science Industry AwardsTM June 2008 101 Pages #08-008 Instrumentation Service Contracts: Opportunities for Differentiation July 2008 136 Pages #08-007 Protein Research: Strategies for Marketing to Chemists and Biologists September 2008 123 Pages #08-006 Understanding Switching Dynamics: Maximizing Customer Retention in the Life Science March 2008 173 Pages #08-004 Life Science Product Catalogs: Techniques to Increase Sales March 2008 92 Pages Report Highlights #08-003 Conference & Exhibit Strategies in the Life Sciences: What’s Working Now February 2008 135 Pages #08-002 Advertising to Life Scientists: Resolving the Print vs. Online Dilemma February 2008 105 Pages #08-001 Marketing to Life Scientists: Capturing Customers’ Attention in Applied Markets January 2008 156 Pages #07-080 Marketing to Life Scientists: Exploring China & India December 2007 167 Pages #07-069 Brand Positioning in the North American Life Science Market October 2007 930 Pages #07-056 Customer Satisfaction & Loyalty in the Life Sciences: Boosting Profit Through Exceptional Service & Support August 2007 129 Pages #07-011 eCommerce Strategies for the Life Science Market June 2007 180 Pages Methodology & Demographics #07-015 Improving Sales Rep Performance: Life Scientists’ Perspectives April 2007 189 Pages #07-001 eMarketing to Life Scientists: Amplifying Your Marketing Message February 2007 171 Pages * See Web site www.gene2drug.com for a complete listing. Why Purchase Our Reports? Company Information Our published reports have several unique qualities that create value unmatched by other firms: members of our unique online panel—The Science Advisory Sources of Independent, Unbiased Research Board—which consists of more than 42,000 verified life Unlike reports from other firms that are based on an analyst’s science and biomedical professionals who have agreed to take subjective summary of information from publicly available part in our surveys, focus groups and other market research sources, our reports are based on the results of detailed activities. These respondents are carefully selected based surveys of hundreds—even thousands—of scientific and on their professional qualifications, market segments and medical professionals who buy your products. geographic regions—we can even select them based on the Developed by a Team of Experts products they use and their preferred suppliers. Our questionnaires are developed by a multi-disciplinary Complimentary Consulting Provided team of scientists, industry veterans and market research Order Form With your purchase, we offer one free hour of consultation experts with years of experience. These professionals with our talented team of scientific and business analysts understand that survey questions need to be asked in a way who created the report. During this consultation, we can that ensures the answers will directly address the business answer any questions you may have about the survey results challenges you face. Once the survey data is collected, and what we believe to be the significant trends affecting the this same team creates a unique report that presents the market. reader with a thorough understanding of the topic and the scientific and business implications of the results based on Custom Analysis & Research Available sophisticated statistical analytics. If you’d like to delve deeper into the data from a study, Carefully Selected Survey Participants we can always perform custom cross-tabulations or other analysis on your behalf. We can even pose follow-up When others promote results from their online surveys, they questions to respondents who answered in a particular way fail to mention the uncontrolled nature of their broadcast or conduct a custom study to extend your knowledge. email invitations. To provide you with the most valid and accurate results possible, the respondents to our surveys are Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 5 of 7 ©2009 BioInformatics, LLC
  6. 6. About BioInformatics, LLC Our strength lies in our ability to integrate our understanding of science and medicine with cutting-edge market research techniques. As one of the first firms to recognize how the World Wide Web has Since our inception in 1994, BioInformatics has provided critical transformed market research, BioInformatics formed The Science market intelligence to leading companies serving the life science, medical device and pharmaceutical industries. We support clients Advisory Board. Launched in 1997, this global community currently Overview across the entire market spectrum—from scientific research to consists of more than 42,000 life science researchers, physicians diagnostics and therapeutics—providing high-level management with and biomedical professionals who convene regularly via the Web to market insights from gene to drug. voice their opinions on a wide variety of issues relating to biomedical research and clinical technologies. Clients tap into this panel of Our multi-disciplinary team of scientific experts and business experts and receive answers to their critical marketing questions in analysts creates value for our clients by combining extensive industry days, rather than weeks. In addition to providing real-time insights knowledge and experience. We offer a variety of products and into the perceptions of the market, posing questions to The Science services that enable executives to see themselves, their market and Advisory Board offers substantial cost savings over gathering their competitors through the eyes of the most important information information via traditional market research techniques. source of all—customers. We can precisely meet the needs of our Report Highlights clients through the most appropriate mix of research methodologies, BioInformatics offers both published reports and custom research including: services. Published reports allow marketing professionals to share in • Online Surveys the results of broad-based market studies that provide access to high • Online Focus Groups quality research at an affordable price. Our custom research is tailored • Mail Surveys to the specific needs of the company’s executive management. For • Telephone Interviews more information about BioInformatics’ product and service offerings, please visit our Web site at www.gene2drug.com, call 703.778.3080 or email info@gene2drug.com. Our Valued Clients Methodology & Demographics Biotechnology/Life Science Eppendorf Plexagen Diagnostics Ortho-Clinical Diagnostics Phillip Johnson & Associates 454 Eurogentec Post Genome Institute Radiometer America PA Consulting AbCam Expression Pathology Promega Tektronix Perry Ballard Accelrys Fermentas Protein Forest Piper Jaffray Pharmaceuticals Affymetrix Fluidigm Proteome Systems Ruder Finn Agencourt Bioscience GE Healthcare Qbiogene Abbott Laboratories Scherago International Agilent Technologies Gen-Probe QIAGEN Amgen Select Equity Group American Type Culture Gene Codes R & D Systems AstraZeneca Stephan & Brady Collection Gene Logic Ribomed Biotechnologies Aventis The Strategy Works Anachem Gene Therapy Systems Rosetta Biosoftware Baxter Healthcare UBS Warburg Antibodies By Design Gentra Systems Sachem Bayer Apple Computer Publishers & Associations GenVault Corporation Sarstedt Boehringer Ingelheim Company Information Applied Biosystems Pharmaceuticals Genzyme Sandia National Laboratories Academic Press Applied Precision Cardinal Health Guava Technologies SAS Institute American Academy of Axxora Centocor Pediatrics Helicos BioSciences Schott Nexterion BD Biosciences Hoechst Marion Roussel AAAS/Science Hewlett-Packard Sequenom Beckman Coulter ICN Pharmaceuticals American Medical Association High Throughput Genomics Serologicals Biacore Janssen Pharmaceutica American Society for Cell Hitachi Instruments Serotec Biology Bio-Rad Laboratories Merck Hybrigenics Sigma-Aldrich American Society for Bioneer Novartis Pharmaceuticals Hyseq Solexa Microbiology Biotage Novo Nordisk IBM Life Sciences SomaLogic American Society of Human Pharmaceuticals BioTrove Illumina Source Precision Medicine Genetics Pfizer Blue Heron Biotechnology Immunotech Stratagene BioTechniques/Eaton Schering-Plough Caliper Technologies InforMax Stressgen Biotechnologies Publishing Callida Genomics Integrated DNA Technologies Takara Mirus Bio Blackwell Publishing Professional Services Cambrex Bio Science Invitrogen Tecan Cold Spring Harbor & Finance Carl Zeiss JRH Biosciences The Jackson Laboratory Laboratory Press Adjuvant Partners Cell Signaling Technology Kirkegaard & Perry Thermo Fisher Scientific Order Form Elsevier Adventus Research Celliance Laboratories Thomas Scientific Federation of Amer. 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EMD Biosciences Ovid Technologies Diametrics Medical Nathan Associates Entelechon Pall Life Sciences Hewlett-Packard Medical National Research Council of Epigenomics Percival Scientific Products Canada Epitomics PerkinElmer Life Sciences LifeScan Novintel Epoch Biosciences Photometrics Mallinckrodt Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 6 of 7 ©2009 BioInformatics, LLC
  7. 7. BioInformatics REPORT #09-001 market insights from gene to drug Prospering in a Down Market: Strategies for Life Science Suppliers Overview PRE-PUBLICATION DISCOUNT PRICES are only available until March 15, 2009! Print Copy—$3,200 Now $2,700! Electronic Copy (includes one print copy)—$5,200 Now $4,500! Enterprise Copy (includes one print copy)—$7,940 Now $6,750! Ordering Information Electronic Copy To place an order, fill out this form and mail it to BioInformatics, LLC or fax This format allows an unlimited number of users within your company it to 703.778.3081. Alternatively, you may submit your order by emailing to access the report regardless of geographic location. You may place the Report Highlights sales@gene2drug.com, calling 703.778.3080 or visiting electronic copy (PDF) on your secure, corporate intranet or share it with www.gene2drug.com/order/200/. co-workers via email. In addition to providing greater accessibility, the electronic copy allows you to easily navigate the document with the help Payment must be made within 30 days and in U.S. dollars. of bookmarks, quickly search key words or phrases and print out any page. BioInformatics’ Federal Tax ID #: 54-2001907. One print copy of the report is also provided at no additional cost. Credit Card Data Set You may charge your order to American Express, MasterCard, Visa, To accommodate your unique needs, the raw data is also available. With Diner’s Card or Discover. Please include your credit card account number, the data, you can analyze respondents’ answer choices in any way needed, expiration date and signature. including cross-tabulations, correlations, etc. The data set is offered in two formats: SPSS® Base or Microsoft® Excel, and may only be purchased in Wire Transfers conjunction with the company-wide electronic copy of the report. Wire transfers should be sent to: SunTrust Bank, 2121 15th Street, Arlington, VA 22201, SWIFT #SNTRUS3A, ABA #071000104, Account #702260169. Methodology & Demographics I wish to order the following format of REPORT #09-001, Prospering in a Down Market: Strategies for Life Science Suppliers Discount Price o Print Copy $2,700 $________ o Electronic Copy (.pdf, includes print copy) $4,500 $________ o Enterprise Copy (.pdf, includes print copy) $6,750 $________ Company Information o Add Data Set Excel or SPSS (circle one) +$1,200 +$________ Additional print copies _____ x $300 each +$________ Promo Code ___________ –$________ Shipping & Handling +$________ (Add $15 for U.S., $50 for Int’l) $________ Total o Check Enclosed (Payable to BioInformatics, LLC) o Purchase Order # ________________________________________ Name o Bill Me Order Form Title o Am Ex o MasterCard o Visa o Diner’s Card o Discover Organization  / Street Address Credit Card # Exp Date (MM/YY) City, State/Province, Postal Code Name on card _____________________________________________ Country Order Authorized By: Phone Fax __________________________________________________________ Signature Date Email BioInformatics, LLC 2111 Wilson Blvd., Suite 250 Arlington, VA 22201 Web: www.gene2drug.com • Phone: 703.778.3080 x13 • Fax: 703.778.3081 • Email: m.follin@gene2drug.com Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 7 of 7 ©2009 BioInformatics, LLC