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Market Segment Training. Instrumentation Market Value Overview. AA ~$2,000M* GC ~$1,650M* Biotech ~$7,500M* Liquid ~$4,100M* (growth at ~6% per annum) *based on figures from SDI 2004 All prices quoted in USD. Geographical Market Distribution.
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Instrumentation Market Value Overview • AA ~$2,000M* • GC ~$1,650M* • Biotech ~$7,500M* • Liquid ~$4,100M* (growth at ~6% per annum) • *based on figures from SDI 2004 • All prices quoted in USD
Geographical Market Distribution • North America and Europe – largest markets ~ 60-65% of the LC market • Asia and Japan – each have 10-15% • Rest of the world – 5-10%
Market Breakdown - 04 • Total LC sales $2,800M • Instrument sales $1,500M • Service $300M • Consumables and data systems $1,000M • Correlates to 20,000 systems – 20% prep, 80% analytical • Less than 1,000 units were UPLC or other systems • Unit price for conventional system ~$40,000
LC Sales Market by Industry • Pharmaceutical – 25% • Independent test labs, Research and Development – 10% • Environmental – 20% • Other industries include – Petrochemical, Food and Agriculture, Bio-analysis, Research and Regulatory and polymer – all make up less than 10% each • Note – a 1% market is still $1.5 billion dollar area!!!
Market Share Breakdown • Widely accepted that Waters and Agilent control 40% of the market • Cover most relevant industries • Companies standardise on Empower, Chemstation etc. • Thermo, Shimadzu, Dionex, Varian and others share the remaining 50-60% of market
What Advantages Does Varian Have? • Greater range of product coverage than other vendors • Sample prep, consumables, columns, hardware, software, distribution, worldwide service and other technologies • Waters and Agilent until now the only other vendors with this complete package offering
Where Varian Sits in Respect to the Rest of the Competition in Terms of Product and Service Offerings
Pharma Business • Buy many instruments from nano scale to super prep • Most pharma companies have R and D and QC functions • Most pharma companies work with both large and small molecules • Generic pharma companies tend to be more production – QC with less R and D
Example of a Pharma Business - Pfizer • Purchased La Jolla pharmaceuticals for $372M • Invested $150M in improvements at the La Jolla site • Research in high throughput screening, discovery technologies, rational drug design, combinatorial and medicinal chemistry, cancer, HIV, hepatitis, blindness, diabetes and obesity • 13,000 scientists work on over 600 R and D projects • In 2004 Pfizer will invest $7.5Bn in R and D projects worldwide
Pharma QA/QC Requirements • Regulatory compliance, reliable methods on fully characterised columns and software • Excellent service response times, reduced downtimes • Resistance to change based on large investment in vendors data system and strategies • Low cost, reproducible consumables key to these accounts which can lead to hardware and software sales
Pharma QA/QC Requirements Cont. • Can lock the Pharma customer in with complete package • Service can make or break the relationship • Data system can determine future purchases • Seamless method translation from R and D to QA/QC
Pharma Methods Development/Validation • Knowledgeable users, troubleshooting role • Develop methods to pass onto QC/QA • Gradient pumps, PDA, column heaters, ELSD • Very analytical buyers of equipment • Require reliable, robust equipment and data systems
Pharma Research and Development • Interested in a diverse range of techniques – capillary, analytical to semi-prep. Hyphenated techniques – NMR, MS, MS/MS, TOF etc. • Money is generally not an issue if the technology gives the user an edge • Data package must have a useability and offer control of information rich instrumentation
Environmental • Driven by EPA or equivalent organisations around the world • Consists of contract labs carrying out analyses such as PAHs, Carbamates, PCBs • Strong offerings in associated techniques like GC, GCMS, AAS and ICP
Academic Research • Varied applications • Usually budget systems, robust, easy to use, easy to service are strong drivers • High end research units in high visibility proteomics research groups similar to Biotech companies • Target research groups/students, long term strategy
Biotech Industry • Fast growing, diverse and large budgets • Large range of techniques used HPLC, NMR, CE, MS and X-ray crystallography • Proteins are target compounds, very sensitive, biocompatible systems and consumables required • Need to know if system is to be used for characterisation, quantitation or preparative • Can probe deeper to customise system for the customer