Webinar: Prospering in a Down Market: Strategies for Life Science Suppliers


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Overview and sample findings from the report "Prospering in a Down Market: Strategies for Life Science Suppliers".

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Webinar: Prospering in a Down Market: Strategies for Life Science Suppliers

  1. 1. Prospering in a Down Market: Strategies for Life Science Suppliers Research in Action Copyright Notice The following presentation is prepared as a professional courtesy to our valued clients. The material in this presentation is protected under U.S. and International copyright law and may not be reproduced in any form without permission of BioInformatics, LLC. Please contact a BioInformatics representative for information on the re-use of this material. www.gene2drug.com Confidential Slide 1
  2. 2. Today’s Agenda Introduction Report Goals  Report Leadership Team  Questionnaire Design  The Science Advisory Board  What We Found Out* Changes in Sources of Funding  Planned Changes in Expenditures by Product Category  How Worried are the Scientists?  A Window of Opportunity — How You Can Help  Wrap Up  Report Summary  Putting the Report to Work for You *This presentation is meant to provide a broad overview and includes only a small sample of the findings from the report. www.gene2drug.com Confidential Slide 2
  3. 3. Report Goals This Report Will Enable You To:  Understand current sources of funding for life science research and drug discovery eorts  Compare and contrast FY2008 (actual) and FY2009 (projected) budgets  Measure scientists’ level of concern with the impact of the economic crises on their lab’s operating budgets  Anticipate purchases in capital equipment and consumables across 14 product categories  Identify strategies labs will employ to “stretch” budgets and cut costs www.gene2drug.com Confidential Slide 3
  4. 4. Report Leadership Team Tamara Zemlo, Ph.D. M.P.H As Director of Syndicated Research and Analysis, Tamara serves as the company's senior technical and scientific analyst. Tamara has authored over 75 published reports for BioInformatics in addition to many articles on life science technologies for leading trade publications and scientific journals. Prior to joining BioInformatics, Tamara was Associate Director of Science Policy for The Federation of American Societies for Experimental Biology (FASEB). She was also a Cancer Prevention Research Fellow at the National Cancer Institute (NCI). Tamara received her Ph.D. in Oncology from the University of Wisconsin-Madison and her M.P.H. from Harvard University. Stacy Hankin As Senior Business Analyst, Stacy's primary responsibilities include performing statistical analysis of survey data, designing quantitative and qualitative studies, and ensuring client satisfaction with data analysis. She is often the lead analyst for studies designed to measure brand strength, customer loyalty and satisfaction using a variety of analytical techniques and statistical models. Her work has been used to launch new brand platforms, measure the effectiveness of advertising campaigns, formulate customer retention strategies and acquire new customers through targeted messaging based on segmentation analysis. Stacy received her bachelor's degree with a double major in Marketing and Logistics, Transportation and Supply Chain Management from the University of Maryland. She is currently pursuing a Graduate Certificate in Survey Design and Data Analysis from George Washington University. www.gene2drug.com Confidential Slide 4
  5. 5. Questionnaire Design www.gene2drug.com Confidential Slide 5
  6. 6. Questionnaire Design (continued) Source: The Science Survey Population Advisory Board n = 500+ Academia Industry Key Targets Pharma Biotech University Hospital (15%) (18%) (38%) (12%) Segment influences experience with the economic recession:  Funding sources  Budget size Hypothesis  Types of products used  Lab culture www.gene2drug.com Confidential Slide 6
  7. 7. The Science Advisory Board www.gene2drug.com Confidential Slide 7
  8. 8. Funding Sources Industry Academia Pharma Biotech University Hospital (15%) (18%) (38%) (12%) RD expenditure Federal government grants   Departmental funds Departmental funds   Institutional funds Institutional funds   Venture capital Private foundation grants   Key Questions: 1. What are scientists’ sources of funding? 2. What percent does each source constitute? 3. How will these funding sources change over time? www.gene2drug.com Confidential Slide 8
  9. 9. Funding Sources (continued) Research in Action:  Identify shifting customer patterns: “CROs may become a key target market for some product areas.” Contracts expected  Project realistic to increase 18.6% revenue goals over the next 2-3 years  Refine marketing strategy www.gene2drug.com Confidential Slide 9
  10. 10. Budget Size Industry Academia Pharma Biotech University Hospital (15%) (18%) (38%) (12%) 39%………………Evaluate……..…………36% 59%…………Budget Authority……….…61% Key Questions: 1. What are scientists’ annual operational budgets? 2. What percent is devoted to capital equipment, instrumentation, and consumables? 3. How will these budgets change over time? www.gene2drug.com Confidential Slide 10
  11. 11. Budget Size (continued) Research in Action:  Estimate how much your customers have available to spend Lab budgets expected  Project spending to decrease from estimates by product category FY2008 to FY2009 by 6.3% “Aren’t things better?”  Stimulus aects mainly academic labs  Grants already approved funded first  Benefits from stimulus expected late FY2009 (at earliest) www.gene2drug.com Confidential Slide 11
  12. 12. Types of Products — Consumables Consumables Cell biology kits and reagents  Cell culture media and reagents  Gene expression analysis products  Nucleic acid separation and purification products  Plasticware  Protein purification and separation products  RNAi products  Key Questions: 1. Who are the top suppliers in each category? 2. What are the expected changes in product spending? 3. What are common cost-saving measures for consumables? 4. How willing are respondents to switch suppliers? www.gene2drug.com Confidential Slide 12
  13. 13. Consumables (continued) Research in Action:  Adapt product development and positioning to customer behavior  Attract new customers with targeted price reductions Ordering in bulk is a common cost- saving measure for plasticware www.gene2drug.com Confidential Slide 13
  14. 14. Types of Products - Instrumentation/Capital Equipment Instrumentation/Capital Equipment Cell biology instruments (Flow cytometer-based)  Cell biology instruments (Microscope-based)  Computer hardware  High throughput screening and analysis systems  Image analysis systems  Instrumentation for genomic analysis  Instrumentation for protein analysis  Key Questions: 1. Who are the top suppliers in each category? 2. What is the expected change in spending for FY2009 compared to FY2008? 3. When was the most recent equipment purchase(s)? 4. Are respondents planning on purchasing equipment in FY2009 and FY2010? www.gene2drug.com Confidential Slide 14
  15. 15. Instrumentation/Capital Equipment (continued) Research in Action:  Help anticipate decline in sales by product category  Make plans for securing future sales  Analyze one’s market share relative to key Instrumentation competitors for genomic analysis is the least aected product category www.gene2drug.com Confidential Slide 15
  16. 16. Lab Culture - Cost Saving Measures Research in Action:  Develop compelling marketing strategies to encourage sales by segment  Create reassuring ad copy and sales messages Adoption of cost-cutting  Understand regional measures can impacts vary greatly by market segment www.gene2drug.com Confidential Slide 16
  17. 17. Lab Culture - Key Trends Research in Action:  Uncover product lines vulnerable to used instrumentation market  Re-evaluate value of More West Coast service oerings respondents are interested in USED high  Assess success of throughput screening green strategies instrumentation Data presented by market and region www.gene2drug.com Confidential Slide 17
  18. 18. Lab Culture - What Suppliers Can Do Research in Action:  Learn how to entice labs to buy more  Understand your customer credibility More academic  Discover unique ways than industrial to increase customer loyalty respondents are interested in buy one get one free oers Data presented by market and region www.gene2drug.com Confidential Slide 18
  19. 19. Report At a Glance Impact of Economic Crises on Laboratory Budgets  FY2008 FY2009 annual operational budgets by market segment  Percentage of budgets spent on major product categories  Sources of lab funding for FY2008 FY2009 www.gene2drug.com Confidential Slide 19
  20. 20. Report At a Glance (continued) Scientists’ Reaction to Economic Crises  Impact of recession on current research by geographic region  Level of concern regarding recession’s eects on research  Top 3 areas in the lab most aected by economic climate  Impact of budgetary restrictions on organizations  Economic philosophy for managing lab budgets www.gene2drug.com Confidential Slide 20
  21. 21. Report At a Glance (continued) Anticipated Changes in Laboratory Purchases  Top supplier(s) in each product category  Expected changes in product purchases from FY2008 to FY2009 Capital Equipment: Consumables: Most recent purchases Cost-saving measures used   Intent to purchase in FY2009 Willingness to switch suppliers   FY2010 www.gene2drug.com Confidential Slide 21
  22. 22. Report At a Glance (continued) Adoption of Cost-Saving Lab Practices  Current laboratory-wide cost-saving measures  Interest in adopting additional cost-saving measures  Eect of cost-cutting on service contracts  Attractiveness of special oers from suppliers  Interest in credibility of suppliers’ advice for how to conserve reagents and extend the shelf-life of instrumentation  Interest in willingness to pay for green products www.gene2drug.com Confidential Slide 22
  23. 23. How This Report Works for You This Report will enable you to…  Provide valuable information to Boards of Directors, analysts and investors  Pinpoint areas of growth, stability and decline by market segment, geographic region and product category  Reposition marketing and sales resources  Tailor marketing programs to increase customer loyalty prevent switching to lower cost suppliers  Target RD and Product Development towards growth areas www.gene2drug.com Confidential Slide 23
  24. 24. Thank you Questions? Or to purchase this report: Mary Follin 703-778-3080 ext. 13 m.follin@gene2drug.com Electronic/Enterprise: $5,200 Print Copy: $3,200 www.gene2drug.com Confidential Slide 24