Since 28 March 2005, researchers in the United States no longer need a licence to practice the basic PCR amplification process, which until then was covered by US Patents
A recent study of scientists who use Taq DNA Polymerase (Taq) shows that slightly over half of the respondents would consider changing their primary supplier of Taq with the appropriate inducement(s).
As the engine that fuels the polymerase chain reaction (PCR), one of the most important inventions in molecular biology, Taq DNA polymerase has transformed how life science research is conducted.
Since 28 March 2005, researchers in the United States no longer need a licence to practice the basic PCR amplification process, which was covered by US Patents 4,683,195, 4,683,202 and 4,965,188.
This much-anticipated opportunity has opened the door for an influx of suppliers hoping to provide Taq DNA polymerase to scientists for this specific application without the associated royalty burden.
In order to determine the affects of the change in patent status on the market and how to encourage supplier loyalty, BioInformatics published its latest report 'The Taq Wars: competitive intelligence on how to survive'.
So far, the change in patent status has not affected Taq brand preferences, however the report reveals areas of weakness that could be exploited by suppliers wishing to expand their reach in this potentially turbulent market.
Invitrogen, Applied Biosystems, and Promega are leading suppliers of Taq across all market segments, however, users of Taq from Qiagen are most bonded to their brand.
"Due to their streamlined and focused product offering, Qiagen has been able to create significant brand strength," noted Tamara Zemlo, director of syndicated research and analysis for BioInformatics.
While the Taq market appears relatively inelastic - that is, respondents would not greatly increase the amount of Taq they purchase if the price dropped significantly - price is still a critical issue in this market.
"Scientists may have a lower price threshold below which prices may signify poorer quality, as well as an upper price threshold above which prices are seen as exorbitant.
"These limits are often influenced by a respondent's reference price, ie, the price they are currently paying per unit of Taq," observed Zemlo.
"This indicates the importance of the pricing decision for suppliers who wish to remain competitive in this market."