BCC Research
Market Research Reports and Technical PublicationsArchive for August, 2008
The eternal orphan
Implemented in 1983, the basic intent of the US Orphan Drug Act (ODA) was to stimulate research, 
development, and approval of products that treat rare diseases. “In the US, these diseases are defined as those which affect less than 2,00,000 patients or those for which cost of development is unlikely to be covered through commercialisation. ‘Orphan drugs’ are thus used for rare diseases for which there is an unmet medical need,” says Dr Chandrashekhar Potkar, Director-Medical and Regulatory Affairs, Pfizer. Examples of these diseases include severe combined immunodeficiency syndrome, cystic fibrosis, hairy cell leukaemia etc. Malaria and tuberculosis also are orphan indications in the US. The concept of orphan drug in the US, apart from covering pharmaceutical or biological products, also covers medical devices and dietary or diet products.
“There is limited commercial opportunity for such drugs. However, research based pharma companies are able to apply their R&D expertise in partnership with government and other medical institutes for orphan indications with unmet medical needs,” Potkar adds. Government provides incentives for sponsors undertaking research on orphan indications. These incentives can take form of tax credits for clinical research expenditure, grants in aid for clinical research, design assistance for investigating orphan indications (eg. open protocols for enrolling patients) and seven year market exclusivity. But the definition of orphan drugs and diseases and the incentives attached to them may vary in different countries depending on the prevalence of diseases there and the respective population strengths.
It is the enforcement of this very Act that encouraged other countries, including European Union (EU), Australia, Japan and Singapore to follow suit. So what is stopping India from adopting a legislation similar to the Act? Potkar says that this may be due to the fact that our current legislation is focused on strengthening R&D in India.
Dr Syamala Ariyanchira, author of BCC Research’s Global Markets for Orphan Drugs report, opines, “Considering that there are next to none pharma companies in India manufacturing or researching orphan drugs to my knowledge, there will be no incentives for them. However, in 2001, a group of pharmacologists at an Indian Drug Manufacturing Association (IDMA) conference had appealed to the Indian Government to form something akin to the Orphan Drug Act. But I have not heard of any kind of development in this context since then.”¹
¹Aashruti Kak; Express Pharma
Global Market Trend for Thin Films in Energy Applications
According to a new technical market research report, THE GLOBAL MARKET FOR THIN FILMS IN ENERGY APPLICATIONS (EGY060A) from BCC Research, the global market for thin films in energy applications was worth $1.1 billion in 2007. This is expected to increase to $1.4 billion in 2008 and $3.9 billion in 2013, for a compound annual growth rate (CAGR) of 23.5%.
The market is divided into application segments for photovoltaics, concentrating solar power, geothermal energy, nuclear energy, batteries and fuel cells. Of these, the photovoltaics segment has the largest share of the market, with $916.4 million in revenues in 2007. This is slated to increase to $1.2 billion in 2008 and over $3.3 billion in 2013, a CAGR of 23.6%.
Thin films for fuel cell applications are the second largest segment, with sales exceeding $82.0 million in 2007. This should increase to $98.7 million in 2008 and $301.0 million in 2013, for a CAGR of 25.0%.
Thin films for batteries have the third largest share of the market, worth $36.0 million in 2007 and an estimated $39.2 million in 2008. This segment should reach over $98.0 million in 2013, for a CAGR of 20.1%.
Applications in nuclear energy are expected to see the slowest growth of any segment. Revenues in 2007 exceeded $25.0 million and are expected to increase only slightly in 2008. This segment should reach $33.1 million in 2013 for a CAGR of 5.0%.
Concentrating solar power applications are expected to see the most robust growth of any segment. Sales for thin films in this segment generated $14.7 million in 2007 and an estimated $23.4 million in 2008. This is expected to reach $93.0 million in 2013 for a CAGR of 31.8%.
Thin films for geothermal applications have the smallest share of the market, worth $2.7 million in 2007. This is expected to increase to $3.0 million in 2008 and $5.3 million in 2013, a CAGR of over 12.0%.
Coming to Terms with Carotenoids
Carotenoids are one of the hottest trends in the personal care and cosmeceuticals markets. In fact, according to BCC Research’s report, “The Global Market for Carotenoids,” the global market for carotenoids was $766 million in 2007 and is expected to increase to $919 million by 2015.
So what, exactly, are carotenoids? WH Leong, vice president, Carotech Inc., shared his definition: “Carotenoids are fat-soluble pigments found primarily in fruits and vegetables. The carotenoids, whose name is derived from the fact that they constitute the major pigment in the carrot root, Daucus carota, are undoubtedly among the most widespread and important pigments in nature. They are present in numerous vegetable oils, vegetables and fruits, such as carrots, leafy green vegetables, tomatoes, watermelon, etc. It is these carotenoids that impart an orangey-red color to the vegetables and fruits. Of the more than 600 known carotenoids in nature, about 20 are found in human plasma and tissues.” Often, carotenoids are used as natural and safe colorants for personal care products, cosmetics and dietary supplements.¹
¹Rebecca Cannon; Inside Cosmeceuticals
Mallinckrodt and Rubicon to develop PanExcea
CRO Rubicon Research and chemicals manufacturer Mallinckrodt Baker are teaming up to develop the PanExcea excipient range, which was launched by the latter firm’s parent company Covidien in July.
The current expansion of the pharmaceutical excipient sector, which a BCC Research report estimated would grow to $4.3bn (€2.8bn) by 2011, suggests that drugmakers are beginning to focus on this aspect of product development as an effective means of controlling development expenditure.¹
¹Outsourcing-Pharma.com
Compound Semiconductors worth $33.7bn by 2012
Wellesley, Mass—According to a new technical market research report, COMPOUND SEMIDONDUCTOR MATERIALS: TECHNOLOGY, DEVELOPMENTS AND MARKETS (SMC032C) from BCC Research, the global market for compound semiconductors was worth $16.0 billion in 2007. This is expected to increase to $33.7 billion in 2012, for a compound annual growth rate (CAGR) of 17.3%.
The compound semiconductors market includes wireless electronic devices, optical data storage, fiber optics communication, illumination, solar cells, new markets, and other compound semiconductors. Wireless electronic devices have the largest market share, generating revenues of $5.7 billion in 2007. This is expected to increase at a CAGR of 10.8% to reach $9.6 billion in 2012.
Other compound semiconductors have the second largest share of the market with $4.6 billion in revenues in 2007 and an expected $6.4 billion in 2012, representing a CAGR of 6.7%.
The illumination segment generated revenues of just under $2.0 billion in 2007, expected to increase to $2.3 billion in 2012, for a CAGR of 4.2%.
Optical data storage and fiber optics communication both had sales exceeding $1.0 billion in 2007 with expectations for high growth in the next five years. Optical data storage is expected to grow at a CAGR of 15.8% to reach $3.4 billion in 2012, while fiber optics communication should grow at a CAGR of 39.5% to reach $6.1 billion in revenues in 2012.
New markets for compound semiconductors generated revenues just under $1.0 billion in 2007, expected to increase to $4.0 billion in 2012 for a CAGR of 34.8%. Solar cells have the smallest market share with $90 million in 2007, although this is expected to grow at a CAGR of 85.0% to reach almost $2.0 billion in 2012.
Although the compound semiconductor industry currently represents about 6% of the total semiconductor revenues world-wide, it is also growing about 50% faster than the semiconductor industry overall, and is expected to almost double its share in semiconductor revenues by 2012.¹
¹CompoundSemiconductor.net
Entertainment tech market to exceed $80 billion
According to a new technical market research report, “Global Markets for Entertainment Technologies” from BCC Research, the global market for entertainment technology was worth $57.3 billion in 2006.
This is expected to increase to $66.9 billion in 2008, and by 2013 the market should be worth $83.3 billion, a compound annual growth rate (CAGR) of 4.5 percent.
The market is divided into entertainment technology devices and programmed entertainment technology. Entertainment technology devices include technology toys and gadgets, home theater systems, multifunctional personal devices, consumer imaging technology, in-vehicle entertainment systems and out-of-home entertainment technology. Programmed entertainment technology includes television and online entertainment and fixed media entertainment.¹
BCC Research Reports on DNA Sequencing Market
Wellesley, MA – According to a new technical market research report from BCC Research titled “DNA Sequencing: Emerging technologies and Applications,” the global market for DNA sequencing technology was worth $794.0 million in 2007 and an estimated $862.5 million in 2008. This should increase to $1.7 billion by 2013, a compound annual growth rate (CAGR) of 14.7%.
The market is broken down into the segments of research/drug discovery and development, commercial applications and emerging applications.
Research/drug discovery and development has the largest share of the market, generating $600.4 million in 2007. This is expected to increase to $640.6 million in 2008 and over $1.0 billion in 2013, for a CAGR of 9.7%.
Commercial applications have the next largest share of the market, worth $193.6 million in 2007 and an estimated $218.8 million in 2008. This should increase at a CAGR of 14.3% to reach $426.1 million in 2013.
Emerging applications have the smallest but fastest growing share of the market. This sector is expected to generate $3.1 million by the end of 2008 and $272.5 million in 2013, for a CAGR of 144.8%. DNA sequencing allows us to catalogue the variations within the human genome sequence that make us phenotypically different, and that cause resistance and susceptibility to disease.
The rapidly evolving sequencing technologies provide unprecedented analytical tools that allow us to identify this sequence variation, in humans as well as in other species. Technology and market forces are working a fundamental shift in the DNA sequencing industry away from stagnant/declining growth towards high growth.
This growth inflection signals the arrival of DNA sequencing as a premier genetic analysis tool: useful for existing applications such as de novo whole genome sequencing and entirely new applications like epigenetic tag sequencing.¹
¹OBBeC.com
Growing Role of Nanotechnology in Medical Devices
To the surprise of no one, the med-tech industry is finding that there is, still, plenty of room at the bottom, to paraphrase physicist and nanotechnology pioneer Richard Feynman. The global medical market for nanotechnology applications accounted for approximately US$1.7 billion in 2007. The vast majority of this revenue–nearly 90%–was generated by pharmaceutical applications. In the years ahead, however, nanotechnology applications in the medical device arena are forecast to surge, while its use in drug-related activities contracts. Those are some of the findings of a report titled Global Medical Markets for Nanoscale Materials and Devices.
BCC Research, which will issue the report this month, predicts that the use of nanotech-related materials, tools, and devices will attain a compound annual growth rate between 14.9% and 19.9% by 2018, potentially generating US$9.4 billion in revenue. By that time, the report predicts that pharma will account for 51% of the medical share of nanotech applications, whereas medical devices and medical research may account for as much as 20% each.¹
¹MedTech Insider; Norbert Sparrow
US market for stem cell technologies in next 5 years
According to a new technical market research report, STEM CELL TECHNOLOGY: CURRENT APPLICATIONS AND FUTURE DIRECTIONS (BIO035C) from BCC Research, the domestic market for stem cell technology is expected to increase from $112.0 million in 2007 to $423.1 million in 2012, a compound annual growth rate (CAGR) of 30.5%
The market is divided into cellular therapeutics and therapeutic banking categories. Stem cells in therapeutic banking have the larger share of the market, worth $65.9 million in 2007 and expected to increase to $155.7 million in 2012, for a CAGR of 18.8%.
Cellular therapeutics should be the faster growing segment. Cellular therapeutics generated $46.1 million in 2007 and is expected to generate $267.4 million in 2012, a CAGR of 42.1%.
Global Market for DNA Sequencing Worth $1.7 Billion by 2013
Wellesley, Mass—According to a new technical market research report, DNA SEQUENCING: EMERGING TECHNOLOGIES AND APPLICATIONS (BIO045B) from BCC Research, the global market for DNA sequencing technology was worth $794.0 million in 2007 and an estimated $862.5 million in 2008. This should increase to $1.7 billion by 2013, a compound annual growth rate (CAGR) of 14.7%.
The market is broken down into the segments of research/drug discovery and development, commercial applications and emerging applications. Research/drug discovery and development has the largest share of the market, generating $600.4 million in 2007. This is expected to increase to $640.6 million in 2008 and over $1.0 billion in 2013, for a CAGR of 9.7%.
Commercial applications have the next largest share of the market, worth $193.6 million in 2007 and an estimated $218.8 million in 2008. This should increase at a CAGR of 14.3% to reach $426.1 million in 2013.
Emerging applications have the smallest but fastest growing share of the market. This sector is expected to generate $3.1 million by the end of 2008 and $272.5 million in 2013, for a CAGR of 144.8%.
DNA sequencing allows us to catalogue the variations within the human genome sequence that make us phenotypically different, and that cause resistance and susceptibility to disease. The rapidly evolving sequencing technologies provide unprecedented analytical tools that allow us to identify this sequence variation, in humans as well as in other species.
Technology and market forces are working a fundamental shift in the DNA sequencing industry away from stagnant/declining growth towards high growth. This growth inflection signals the arrival of DNA sequencing as a premier genetic analysis tool: useful for existing applications such as de novo whole genome sequencing and entirely new applications like epigenetic tag sequencing.
FIGURE
GLOBAL VALUE OF DNA SEQUENCING, BY END USE APPLICATION,
2006-2013
($ millions)
