Opportunities in the European proteomics mass spectrometry markets analysed in a new report, which predicts that revenues will reach $615 million by 2009
The science of proteomics, employed to decipher the form, function and interactions of molecular proteins, has evolved as a natural progression from genomics and continues to play a vital role in the discovery of new drugs.
Researchers in the proteomics discipline currently depend on two key technologies - 2D electrophoresis to separate the proteins for analysis and mass spectrometry for their identification and characterisation. Within biochemical protein analysis, the most commonly used combinations of ionisation source are Maldi-Tof, quadrupole time flight (Qtof), ion trap analyser and electrospray ionisation (ESI) coupled with triple quadrupole.
These four types of instruments occupy 80% of the global life science mass spectrometry markets, according to market consultant Frost and Sullivan.
Total market revenue generated through mass spectrometry instrument sales of these four types to the life sciences amassed US$256.3 million within Europe in 2002.
Growing at a compound annual growth rate of 13.3%, the market will fetch $614.5 million in 2009.
The fundamentals underpinning the proteomics MS market, such as the ongoing need for labs to have instruments for proteomic identification and the lack of significant competing technology or an 'all-in-one' proteomics solution, remain in good shape.
"Natural market ageing, uncertainty in public and private funding, cancelled orders and consolidations in the pharmaceutical industry count among the key forces depressing sales in the proteomics MS industry," reports Annabel Entress, industry analyst at Frost and Sullivan.
Further moderating the overall pace of growth in the European proteomics MS market are the inadequacies of current bioinformatics software packages, which fail to deal with the sheer amount of data that is generated by many high throughput systems.
"Post-throughput, bioinformatics is the vital step rendering the data useful.
If the software is not performing or showing insufficient capabilities, then all efforts to speed up genomic and proteomic workhorse tools are essentially not valid until the information can be satisfactorily processed," Ms Entress continues.
This is compounded by the negative influence of the uncertain economic future on buyer attitudes.
Furthermore, the impact of the recent downturn in pharmaceutical spending is damaging overall performance in the proteomics MS market.
The recent spate of consolidation activity in the pharmaceutical industry is reducing R and D spending growth, aside from the usual administrative and marketing expenses, and is expected to ultimately impact the capital equipment budgets.
The trend towards consolidation in the pharmaceutical industry poses a key challenge for companies active in the proteomics MS market.
However, pressure to succeed may result in spending on long-term drug discovery tools such as mass spectrometers, and Frost and Sullivan believes that it is unlikely for R and D expenditure to dwindle.
Since different MS instruments are more adept at successfully solving certain research problems than others, it is reasonable to expect that each research group under the merged company's umbrella will still have its different needs for different machines. "Public funding levels in some EU regions have suffered in recent years.
As the economy grinds down for a multitude of reasons, public spending is likely to suffer.
Nor can private investment be relied upon to plug the gap as the stock market has also taken a battering," Ms Entress points out.
Among all this doom and gloom, proteomics is still deemed a crucial research area and monies to fund projects are unlikely to dry up. Ten accession states are due to sign up to the European Union next year.
The transitional issues associated with EU enlargement will include some knock-on effect on the availability for public funds in existing EU countries.
Sluggish economic growth characterises some of the applicant states and the overall budget for EU public research is not expected to rise proportionately in order to accommodate the additional labs' needs.
The exact implications of EU enlargement for existing research labs and spending levels are as yet unclear.
Some labs, however, feel compelled to put contingency plans in place and prioritise their research to ensure that the most promising research areas will generate revenue in order to fund additional areas of interest. To boost competitiveness, Frost and Sullivan recommends market participants in the proteomics MS to reinforce their marketing strategies to broaden the appeal of this expensive piece of equipment.
Frost and Sullivan's study cites the lack of knowledge surrounding customer needs as a strategic weakness amongst competitors.
"Companies can gain a competitive advantage and develop top-selling products by identifying key areas of concern among existing and potential clients.
This could be a different type of instrument with greater capacity, smaller size or cheaper cost or include improved training, an enhanced support structure or perhaps an improved software package," Ms Entress explains.
Waters claims the number one spot with an estimated 33% share of the total European proteomics MS market. Frost and Sullivan attributes Waters's success to the its strong presence in three of the market segments, capitalising on the company's broad product range, quality instruments, good sales and distribution channels and valued customer relations.
