Growing European Market for Nucleic Acid Isolation

Because nucleic acid is the fundamental substance preceding all other procedures in drug research, its integrity can enhance or damage research quality.

Frost & Sullivan (Palo Alto, CA, USA), an international growth consultancy company, finds that genomics markets/nucleic acid isolation markets in Europe earned revenues of U.S.$670.0 million in 2005 and estimates this will reach $1,490.2 million in 2012.

Incorporation of automation and robotics in the isolation of nucleic acid also plays a crucial role in meeting demand for purity. Further technologic value addition will only spur the instrumentation revenues in the market.

In this environment, automation has become instrumental in optimizing sample preparation stages--particularly for low- and medium-throughput operations. Suppliers of automation equipment to research institutions and pharmaceutical companies continually try to meet customers' demand for an open platform technology base with reagents and consumables.

"Automation vendors are working toward knowing their customers' needs, and customizing their solutions to ensure maximum satisfaction,” remarked Frost & Sullivan research analyst Charanya Ramachandran.

The market is very dynamic as brand restrictions and customer loyalty present problems for new participants. There is tremendous competition within the DNA as well as the RNA segments, which challenges an entrant to the market. Most end-users in this market give importance to reliability in their instrumentation suppliers, and therefore, brand loyalty is very high. Vendors with enough visibility and a proven market record, particularly in the case of reagents and purification kits that produce nucleic acid molecules with maximum purity, are able to make profits.

The best strategy for a niche participant would be to form a strategic alliance with a larger brand to gain better visibility. Furthermore, suppliers could offer a complete optimal cost solutions base using innovative technology, since the demand for stand-alone purification instrumentation is not very high.

"Some factors which can enhance a company's position within the market include forming strategic alliances or exclusive licensing agreements with a major innovative technology vendor,” noted Ms. Ramachandran.

Reliable service, accuracy, and quality, as well as attractive customer schemes could gain customer loyalty over time. Established suppliers could maintain and increase their base by building on customer loyalties through loyalty programs and a combination of selling and pricing strategies.



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