A Comprehensive Overview of the Biotech Industry

The developments in the biotech industry are one of the most sophisticated and elegant achievements of modern science. Biotechnology is concerned with the use of living organisms or the biological systems found in them to make technological advancements and adopt those technologies to suit the needs of different fields ranging from agricultural practice to the medical sector. In fact, in the recent years, the biotech industry has won several laurels for their advancements and discoveries that have simplified tasks for several other sectors.

Types of biotechnology

Medical biotechnology

This is one of the most common types of biotechnology. It involves the use of living cells and other cell materials for the purpose of improving the standards of healthcare. Essentially, it is used for discovering cures as well as eradicating and preventing diseases. This branch of the different types of biotechnology is concerned with producing pharmaceutical drugs or vaccines as well as other chemicals to combat diseases.

Agricultural biotechnology

Agricultural biotechnology is a recent development among the different types of biotechnology. The applications of biotechnology in agriculture have yielded remarkable results. It primarily focuses on developing genetically modified plants for the purpose of increasing crop yields. They also help in introducing specific characteristics to the plants that provide them with an advantage when growing in regions that place some kind of stress factor on the plant, such as weather and pests.

Industrial biotechnology

In industrial biotechnology, biological resources are used to produce materials, energy, and chemicals that are required for the development of industrial goods. They also engage in producing bio-based products like paper, pulp, textiles, biofuels, and biogas. It plays a vital role in improving the performance of the industry and adds value to its products too. Notably, they are also known to provide several other benefits such as pollution prevention, resource conservation, and cost reduction. Industrial biotechnology is also used to manufacture items such as beer and wine, washing soaps and detergents, and several other personal care products.

Applications of biotechnology

The applications of biotechnology in various industries are reducing the excessive dependence on fossil fuels and are helping in the development of better and more environment-friendly products. Here are some of the key sectors that are greatly benefiting from the discoveries in the biotech industry:

Nutrient supplements

One of the most iconic inventions in the biotech industry is the infusion of nutrients into food. It provides food with heavy nutrients that are necessary for such situations. It provides food with heavy nutrients that are necessary, especially in situations where people are ill or undernourished.

Healthcare

Healthcare is one of the sectors that has benefited the most from the developments in the biotech industry. Biotechnology is used in the healthcare industry for diagnosis and treatment of different diseases. They are also used in the development of vaccines that help prevent deadly diseases.

Food processing

Food materials are characterized by their tendency to perish easily and have shorter shelf-lives. However, recent innovations in the biotech industry help in converting non-palatable and easily perishable products to edible and portable foods and beverages that have a longer shelf life. Biotechnology also helps in improving the edibility, texture, and storage of the food materials.

Biofuels

The biotech industry is increasingly engaged in the discovery of alternative sources of energy. The dwindling oil resources in the world and their related environmental impacts are some of the major factors fueling this research. One of the key examples of success in this area is the use of corn to produce combustible fuel for running car engines. These fuels do not produce the greenhouse gases and harm the environment.

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Top Biotech Companies in the World

TOP BIOTECH COMPANIES

The term biotechnology was coined by a Hungarian agricultural engineer, Karl Ereky, in the year 1919. ‘Biotechnology’ is used to describe the merging of biology and technology. Many top biotech companies and research centers are doing everything in their power to realize Ereky’s vision of revolutionizing biology with the help of technology. While pharmaceuticals, medical devices, and diagnostics are minting money in the biotech industry, many advances are also being made to develop more-resilient crops, biomaterials, biofuels, and pollution controls. Biotech companies are rolling innovation at a breakneck pace and are expected bring some of the hottest technology of the future that will also refine the national economy. The biotech industry is growing by leaps and bounds, and many biotech stocks are scoring superior returns for investors. Here is the list of the top biotech companies from around the world that are leading the way for innovation and commercial success:

Johnson & Johnson

Johnson & Johnson is one of the top biotech companies in the world. The company was founded in 1886 and headquartered in New Brunswick, New Jersey. Johnson & Johnson is one of the big names in the biotech industry that manufactures, markets, or distributes more than 172 drugs in the US, including brands such as Motrin, Tylenol, Zyrtec, and Sudafed. The company’s pharmaceutical segment focuses on neuroscience, immunology, infectious disease, and oncology.

Roche

Among the top biotech companies in the world, Roche is one of the largest with 14 biopharmaceutical products on the market. The company was founded in Switzerland in 1896. ‘Cure’ is a strong word when it comes to treating cancer and other deadly diseases.For several years, Roche has been at the forefront of cancer research and treatment, creating medicines for several types of cancers. The company has developed breakthrough treatments in ophthalmology and neuroscience in the biotech industry.

Pfizer

Pfizer is one of the key players in the biotech industry. Founded in the year 1849, the company is headquartered in New York City. The company acquired Botox maker Allergan in 2015, which turned out to be one of the largest-ever acquisition in the biotech industry.

Novartis

The Switzerland based company was founded in the year 1996 through a merger of Ciba-Geigy and Sandoz. Novartis’s businesses are focused on pharmaceuticals, eye care, and generics. The company is slowly expanding its presence in emerging markets such as Asia, Africa, and Latin America, where there is an increasing demand for medicines and health care. Novartis is among the top biotech companies that are developing and commercializing oncology, primary care, and specialty medicines.

Novo Nordisk

It is a multinational biotech company that is headquartered in Denmark. Novo Nordisk has production facilities in seven countries and affiliates or offices in 75 countries, with 41,000 employees worldwide. The company’s primary focus is on diabetes care, hemophilia care, growth hormone therapy and hormone replacement therapy. The company produces drugs under several brand names such as Levemir, NovoLog, Novolin R, NovoSeven, NovoEight, and Victoza.

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SpendEdge’s Cost Model Analysis Helped a Renowned Biomedical Engineering Client Create a Profitable Cost Mix

Overview of the Biotechnology Industry

Recently, the biotechnology industry has started witnessing considerable growth with the growing demand for food and limited availability of non-renewable natural resources. With the availability of a favorable regulatory scenario, companies specializing in biomedical engineering have started investing in R&D and applications to improve their service levels and enhance business efficiency. Apart from the conventional factors, the emergence of biosimilars and the increasing application of biotechnology in medical services are anticipated to define the future outlook of the market. Although the market for biomedical engineering is witnessing growth due to the presence of a plethora of companies focusing on the development of regenerative therapies, several factors may curtail the growth of the biomedical engineering market. They include:

Product development: The level of competition is intense in the biomedical engineering industry and developing products can be an expensive and time-consuming affair. Moreover, companies are also facing the need to rely on innovations to reduce uncertainties around the product development cycle and ensure quality in the products being offered. Moreover, with only a few guarantees that the new products will succeed, companies should focus on consistency and reducing operational costs.
Contract manufacturing: At present, biomedical engineering companies have started outsourcing their processes to reduce capitals and outlay costs. However, working with contract manufacturers can result in issues pertaining to product quality. This is a major problem for biomedical engineering companies as the current regulatory environment is compelling businesses to stay in line with the new production norms.

To counter such challenges and identify the key cost elements in the industry, organizations are utilizing cost model analysis solutions. In the biomedical engineering market, cost model analysis helps companies to identify the key cost elements and assess the impact of each cost driver on the overall cost. In addition, cost model analysis also allows companies to identify the gaps that need to be bridged to increase the use of resources to enhance business performance.

The Business Challenge and Our Journey

A renowned client in the biomedical engineering market wanted to understand the relative trends and create an accurate cost model to effectively negotiate with the suppliers. With the help of cost model analysis, the client wanted to gain adequate knowledge and insights to determine the fair market pricing to ensure maximum profitability. In addition, the firm specializing in biomedical engineering wanted to compare the outsourcing options with in-house capabilities and evaluate the potential costs and revenues that can be generated if the project is completed.

To compile a comprehensive list of all the costs and benefits, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the biomedical engineering market. The experts also compiled information from a wide array of reliable sources such as trade shows, paid industry databases, and company presentations.

The cost model analysis solution offered by SpendEdge assisted the firm specializing in biomedical engineering to understand the direct and indirect costs, intangible costs, opportunity costs, and the cost impact of potential risks. The biomedical engineering client was also able to include all direct and indirect revenues and tangible benefits and further achieve the lowest cost mix.

Fundamental questions answered in this cost analysis solution include:

Sp- biotech engineering

The Results

With our help, the biomedical engineering client was able to negotiate levers to ensure low-cost raw material sourcing. Furthermore, the client was able to determine the upcoming costs and develop cost model technologies to assist customers with their cost management needs.

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Supply Market Intelligence Helps a Biotech Industry Client Drive Higher Efficiency and Savings

Overview of the Biotech Industry

The biotech industry is a highly unpredictable and a volatile sector due to the scientific intensive operations of companies that reside within this space. The biotech industry serves markets likes agricultural, medical, environmental, and industrial. Biotech firms are among the most research-intensive organizations across the globe. Companies operating in this space are focusing on the development of novel techniques and their implementation by collaborating with the other participants. For instance, some companies have started formulating superior grades of biofuels to guard harvests against insects and pests across the agriculture sector.

The rise in demand for therapeutic and diagnostic solutions on principles of sequencing, red biotechnology, DNA and recombinant technology is anticipated to fuel the growth of the biotech industry. Also, increasing prevalence of diseases such as cancer, hepatitis B, and other orphan disorders are expected to drive the demand in this space.

Let’s take a look at a few factors influencing the growth prospects of the biotech industry in the coming years. These factors include:

Product Development: The competition in the biotech industry shows no signs of slowing down anytime soon. Therefore, staying ahead of the pack requires strategic thinking, with an increased focus on establishing systems for ensuring quality and reducing risk. For some companies, it’s an immense step, but it’s one that will pay off in the long run.
Contract Manufacturing: Biotech industry firms use contract manufacturers to bring their products to market. This is because outsourcing elements of the production process decreases capital and costs, consequently helping companies increase their focus on core strengths like product design. Nevertheless, working with contract manufacturers introduces large uncertainties to the business, particularly where quality assurance is concerned.

These factors are compelling firms across the biotech industry to leverage the use of supply market intelligence studies. The supply market intelligence studies help companies develop superior product and service offerings while reducing their procurement spends. These solutions also firms gain an in-depth understanding of the latest developments, trends, risks, and recommendations on formulating procurement best practices to help them cement their place across the biotech space.

The Business Challenge and Journey

The client, a leading firm operating in the biotech industry wanted to improvise on their efficiency and productivity of their procurement function while enabling a stable pre-purchase approval system to achieve informed purchases. With the help of a supply market intelligence study, the client also wanted to migrate from their current manual and decentralized procurement processes to a robust, automated and centralized procurement solution which helps them in realizing higher productivity and savings.

The supply market intelligence experts at SpendEdge tailored a wide-ranging research methodology to help the client gain a single view of the enterprise-wide procurement spend and achieve higher efficiency. The research methodology included primary research coupled with qualitative and quantitative data collection procedures. The experts also gathered information from a wide array of secondary sources such as paid, company presentations, industry forums, and industry database within the biotech space.

With the help of the supply market intelligence engagement, the client gained insights into a faster payment cycle, thereby, helping them capture early payment discounts and realize higher savings. The client was also able to enhance integration with suppliers through portal connectivity and manage indirect spend across the supply chain. The engagement also helped the client rank their action plans, think strategically, devise best practices, and implement new sourcing strategies across business units.

Fundamental questions answered in this supply market intelligence engagement

The Results

During the course of this supply market intelligence, the biotech industry client gained visibility into the corporate spend across suppliers and categories. This helped them enhance productivity and achieve tighter control and compliance.

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Spend Management Helps a Biotech Industry Player to Reduce Maverick Spend Across the Supply Chain

Category Overview

Over the past few years, the global biotech industry has witnessed unprecedented growth owing to rising demand for diagnostic and therapeutic solutions for DNA sequencing and recombinant technology. Additionally, the biotech industry players have started formulating superior grades of biofuels to guard harvests against insects and pests in the agriculture sector. However, according to SpendEdge’s spend management experts, the high costs associated with developing biotech products is of the major reasons for the industry’s sluggish growth.

Consequently, to determine their current state of spend and retain their position in this market space, biotech industry players have started adopting spend management studies. Moreover, the spend management solutions offered by SpendEdge, also help biotech industry firm assess and enhance their management decisions by devising cost-effective strategies.

The Procurement Pain Point and Insights Offered

A global biotech industry firm wanted to centralize all their procurement functions into a single process. This would help them reduce material spends and inventory costs across the supply chain. Additionally, the client also wanted to conduct an in-depth analysis of their spend pattern and devise superior supplier negotiation strategies to gain a competitive edge over the peer companies.

To cater to the precise category requirements of the client, SpendEdge’s spend management experts conducted an in-depth two-step research, which included primary and secondary analysis. The study also consisted of qualitative and quantitative data collection methodologies to address the client’s specific business issue. During the course of this spend management engagement, the biotech industry client was able to centralize their procurement functions into a single process. Additionally, the client was able to ensure compliance with procurement policies and contracts and operate in low-cost procure-to-pay processes.

Fundamental questions answered in this spend management study include

Business Outcome

SpendEdge’s spend management solution helped the biotech industry client enhance their spend visibility and reduce maverick spends across the supply chain. Additionally, the client also improved policy compliance and reduced the overall supply chain risks.

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Spend Analysis Solutions helps a Biotech Industry Client Improve Process Efficiency

Category Overview

With the relentless growth in the technology, biotech industry players are facing the need to offer more consumer-centric solutions. Also, the ethical issues associated with clinical trials coupled with long research time are forcing organizations to devise a robust spend analysis solution to curtail the costs associated with additional spend. In the biotech industry, organizations are advocating the need for spend analysis solution to gain better visibility into their spending patterns across their enterprise. Moreover, organizations can further improve their procurement objectives, improve data quality and minimize maverick spend, and accelerate the decision-making process.

To gain strategic insights into the buying behavior, businesses have started approaching companies like SpendEdge, who specialize in offering solutions for spend analysis. SpendEdge’s spend analysis solutions help clients make better, agile, and more confident buying decisions. Spend analysis solutions also help clients identify the loopholes in the organizations in terms of savings leak and purchasing overlaps, and effectively compare the spend with that of the competitors.

The Procurement Pain Point and Insights Offered

Like several other players in the biotech industry, a renowned client in the biotech industry was facing predicaments understanding their spending patterns and devising effective strategies to improve their process efficiency. The client further wanted to assess their current spend and identify the possibilities of improving their current state of spend. The client further wanted to assess and select suppliers and develop a contract negotiation strategy with current suppliers.

To understand the current spending patterns and improve process efficiency, the client approached SpendEdge’s team of spend analysis experts. SpendEdge’s team of spend analysis analysts carried out a blended approach comprising of interviews and discussions with leading stakeholders in the biotech industry. Also, the client compiled information from proprietary sources such as paid industry databases, biotech forums, newsletters, and magazines in the biotech industry.

After gauging complete information into the spend analysis landscape, SpendEdge’s spend analysis solution helped the client cleanse, validate, and enrich data with better visibility across the enterprise. Furthermore, the solution helped the client gain actionable insights into the spending trends and buying activities of the client. The client was further able to streamline their strategic sourcing plans, reduce maverick spend, and improve cost savings.

Key questions answered in this spend analysis study include

Sp- Spend 01

Business Outcome

With the help of SpendEdge’s spend analysis solution, the client was able to understand the aggregate spend by commodity, supplier, and category from disparate sources, languages, and currencies. Also, the client gained further visibility into the item level across categories and business units. Furthermore, the client was able to devise robust strategic sourcing strategies and specify products based on quality and availability.

Spend Analysis for a Major Biotech Industry Client Helps Determine the Current State of Spend

Category Overview

In recent years, the biotech industry has witnessed an astonishing growth due to the rise in the demand for therapeutic and diagnostic solutions for recombinant technology and DNA sequencing. Additionally, the major players in the biotech industry are formulating new grades of bio-based fuels to protect crops against pests and insects in the agriculture sector. However, according to the spend analysis experts at SpendEdge, the steep costs associated with developing biotech products may pose a significant challenge for the growth of this industry.

As a result of such challenges, many biotech industry players have started opting for spend analysis solutions to determine their current state of spend and retain their position in this market space. Moreover, the spend analysis studies offered by SpendEdge, also help biotech industry players evaluate and improve their management by devising cost-effective strategies.

The Procurement Pain Point and Insights Offered

Like several other biotech industry players, a leading biotech industry client wanted to gain insights on achieving a single platform to integrate their purchasing activities. This would help them cut down on material spends, inventory costs, and reduce maverick spend across the supply chain. They also wanted insights and recommendations on their spend pattern and superior supplier negotiation strategies to achieve significant cost savings.

To cater to the specific category requirements of the client, the spend analysis experts at SpendEdge followed an in-depth two-step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection procedures to address the client’s issue.

During the course of this spend analysis study, the biotech industry client was able to devise a single platform to integrate their purchasing activities. Additionally, the client also gained insights on the ways to decrease procurement costs and improve their process efficiency. The client was also able to build superior supplier negotiation strategies across the supply chain.

Key questions answered in this spend analysis study include

Biotech Industry

Business Outcome

The spend analysis study helped the biotech industry client determine their current state of spend and optimize their major areas of spend. Additionally, the client was offered suggestions to improve their process efficiency and achieve significant cost savings.

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SpendEdge – Spend analysis for a biotech industry client from SpendEdge

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Procurement Market Intelligence Study on the Consulting Sector

The Procurement Pain Point

With a keen eye on identifying the best procurement practices and future market opportunities, the client – a leading a pharmaceutical company that discovers, develops, and markets both biopharmaceuticals and small molecule drugs – approached SpendEdge to engage in a procurement market intelligence study that would help them gain effective insights into the consulting sector. The procurement intelligence engagement also helped the client gain comprehensive insights into the supply market, strategic sourcing, pricing, and procurement strategies specific to the consulting category.

The primary objective of this procurement market intelligence engagement was to help the client gain a detailed understanding of the market dynamics, outsourcing trends, price levels in the market, best practices around category management strategies, and develop recommendations based on category strategy implementation.

To meet the specific category requirements of market-leading companies in the consulting sector, SpendEdge’s experienced procurement market intelligence team tracked latest developments and procurement trends in the market through secondary journals and reached out to key stakeholders, thought leaders, end users of consulting services, procurement experts to understand their views on the market. Our procurement market intelligence specialists also spoke to key stakeholders to understand how the consulting services market would grow in the short and long term to validate the market size and procurement market intelligence model developed for this industry.

Procurement Insights Offered and the Outcome

To address the various procurement market intelligence requirements specific to the client’s needs, we deployed a dedicated team of sourcing and procurement analysts working under a project manager with significant experience in conducting and managing similar procurement market intelligence studies specific to the consulting category. The insights offered followed a blended approach of primary and secondary research followed by data analysis and category specific insights development.

In just four weeks, the client – a leading pharmaceutical company – was able to gain a better understanding of the different types of consulting services, including legal, quality, finance, strategic consulting. The procurement market intelligence service offered by our team also helped the global client understand the global market landscape by analyzing the market segments, trends, drivers, and challenges. Additionally, an assessment of the current outsourcing trends, pricing models, procurement best practices, and strategies was also offered to help the client identify current and future market opportunities.

Some of the additional questions answered by our procurement market intelligence study includes

What are the best practices followed by industry peers specific to consulting services procurement?
What are the typical short, middle, and long term goals and what are their key benefits?
What are the key priorities considered for optimization of consulting services procurement?
How to prioritize action plans?
What are the key contracting and engagement best practices followed by peer group companies?
What are the key strategies implemented for cost savings and supplier consolidation?

This case study offers information on how our procurement market intelligence study helped a global pharmaceutical client understand the market space for the consulting sector better.

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Consulting Sector

Types of biotechnology

Medical biotechnology

Agricultural biotechnology

Industrial biotechnology

Applications of biotechnology

Nutrient supplements

Healthcare

Food processing

Biofuels

Know more about the market intelligence solutions that we offer for the biotech industry

Johnson & Johnson

Roche

Pfizer

Novartis

Novo Nordisk

To know more about the world’s top biotech companies

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Key questions answered in this spend analysis study include

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Want to know more about our spend analysis solutions for biotech industry players?

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This case study offers information on how our procurement market intelligence study helped a global pharmaceutical client understand the market space for the consulting sector better.

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