Biotech impacts US companies with $567bn worth of sales

13 November 2003 19:26  [Source: ICIS news]

WASHINGTON (CNI)--A recent study by the US Department of Commerce indicates that companies engaged in biotechnology-related businesses boast combined sales of $567bn (Euro485bn) with $8bn of that in global markets, CNI learned Thursday.

Initiated last year, the study is largely based on data collected from a survey of more than 3000 firms, according to the Commerce Department. About 1000 firms responded to detailed survey questions. The study is meant to assist federal agencies in developing policies and statistics of biotech-related business in the US.

The 150-page survey report showed that $272bn in value was added to products in 2001 through the use of biotechnology, totalling 2.7% of US gross domestic product (GDP) that year.

Growth for biotech net sales during 2001 and 2002 averaged about 10%. Yet biotech business segments expanded at twice rate of growth of their businesses in 2002 at 14%, compared to 7% in 2001.

The Commerce Department found that more than 1.1m employees work in US industries that use or develop biotech products, and the workforce at biotech companies expanded by 12.3% between 2000 and 2002. Other findings included:

• International markets accounted for at least 16% of firms’ biotech-related net sales in 2001. Europe is the leading foreign market for biotechnology products with 56% of export revenues. The Asia Pacific region accounts for 24% of exports. Nearly one quarter of surveyed companies said they plan to expand into foreign markets in the near-term.

• By the last quarter of 2002, companies reported 33 131 pending applications for biotechnology products or processes. More than 23 000 portfolio patents exist.

• While 90% of survey respondents had 500 or fewer employees – 58% of those with fewer than 50 employees – 2% of respondents were large companies with more than 15 000 employees.

• For 90% of firms, biotech-related business accounted for more than 75% of total net sales, employment and operating income. For all respondents, biotechnology-related business accounted for nearly 40% of total research and development (R&D) expenditures. The firms spent $41.6bn on R&D.

• By geography, 70% of respondents were located in 10 states, with 26% in California. Other states with a considerable sum of biotech-related business included Massachusetts, Maryland, Pennsylvania, North Carolina and New Jersey. About 65% of firms classified themselves as scientific R&D services or pharmaceutical companies.

• Medical related firms said most of their biotech-related business was in the area of therapeutics. Companies reporting concentrations in agriculture or animal health focused their R&D efforts on seeds, livestock and aquaculture. More than half conduct DNA-related research, including research on protein products and polymers for biochemical analysis.

The full report can be accessed at: http://www.technology.gov/reports/biotechnology/CD120a_0310.pdf

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