Fast Growth Forecast For US Biopharma

The value of the US market for biopharmaceutical products will grow at an annual compound rate of 14% from under $3 billion in 1993 to over $7.3 billion by 2000, according to a new study from Frost & Sullivan.

During this period, says the study, the percentage of total revenues accounted for by interleukins will grow from 5% to 12%, while that of colony stimulating factors will expand from 20% of the total to 23%, and that of interferons will advance from less than 1% in 1993 to 3% by 2000, it estimates. However, erythropoietin sales will dip from 26% of the total in 1993 to 23% in 2000, insulin's share of the total market will be down from 16% to 13% and that of vaccines will decline from 13% to 9%.

The study says the investment community currently regards the biopharmaceutical community warily, given prevailing uncertainty over health care reform and recent disappointments suffered by the industry. This caution acts as a brake particularly on companies which have yet to bring products to market, and means that the ability to attract investment is a significant competitive plus. Inadequate funding is a large cause of recent refusals by the Food and Drug Administration to approve new biopharmaceuticals, as it renders companies incapable of doing an adequately thorough job.