Overview and sample findings from the report "Prospering in a Down Market: Strategies for Life Science Suppliers".

1. Prospering in a Down Market:
Strategies for Life Science
Suppliers
Research in Action
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www.gene2drug.com Confidential Slide 1

2. Today’s Agenda
Introduction
Report Goals

Report Leadership Team

Questionnaire Design

The Science Advisory Board

What We Found Out*
Changes in Sources of Funding

Planned Changes in Expenditures by Product Category

How Worried are the Scientists?

A Window of Opportunity — How You Can Help

Wrap Up
 Report Summary
 Putting the Report to Work for You
*This presentation is meant to provide a broad overview and includes only
a small sample of the findings from the report.
www.gene2drug.com Confidential Slide 2

3. Report Goals
This Report Will Enable You To:
 Understand current sources of funding for life science research and
drug discovery eorts
 Compare and contrast FY2008 (actual) and FY2009 (projected) budgets
 Measure scientists’ level of concern with the impact of the economic
crises on their lab’s operating budgets
 Anticipate purchases in capital equipment and consumables across 14
product categories
 Identify strategies labs will employ to “stretch” budgets and cut costs
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4. Report Leadership Team
Tamara Zemlo, Ph.D. M.P.H
As Director of Syndicated Research and Analysis, Tamara serves as the company's senior technical and
scientific analyst. Tamara has authored over 75 published reports for BioInformatics in addition to many
articles on life science technologies for leading trade publications and scientific journals. Prior to joining
BioInformatics, Tamara was Associate Director of Science Policy for The Federation of American
Societies for Experimental Biology (FASEB). She was also a Cancer Prevention Research Fellow at the
National Cancer Institute (NCI). Tamara received her Ph.D. in Oncology from the University of
Wisconsin-Madison and her M.P.H. from Harvard University.
Stacy Hankin
As Senior Business Analyst, Stacy's primary responsibilities include performing statistical analysis of
survey data, designing quantitative and qualitative studies, and ensuring client satisfaction with data
analysis. She is often the lead analyst for studies designed to measure brand strength, customer loyalty and
satisfaction using a variety of analytical techniques and statistical models. Her work has been used to
launch new brand platforms, measure the effectiveness of advertising campaigns, formulate customer
retention strategies and acquire new customers through targeted messaging based on segmentation
analysis. Stacy received her bachelor's degree with a double major in Marketing and Logistics,
Transportation and Supply Chain Management from the University of Maryland. She is currently
pursuing a Graduate Certificate in Survey Design and Data Analysis from George Washington
University.
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5. Questionnaire Design
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6. Questionnaire Design (continued)
Source: The Science
Survey Population
Advisory Board
n = 500+
Academia
Industry Key Targets
Pharma Biotech University Hospital
(15%) (18%) (38%) (12%)
Segment influences experience with the economic recession:
 Funding sources
 Budget size
Hypothesis
 Types of products used
 Lab culture
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7. The Science Advisory Board
www.gene2drug.com Confidential Slide 7

8. Funding Sources
Industry Academia
Pharma Biotech University Hospital
(15%) (18%) (38%) (12%)
RD expenditure Federal government grants
 
Departmental funds Departmental funds
 
Institutional funds Institutional funds
 
Venture capital Private foundation grants
 
Key Questions:
1. What are scientists’ sources of funding?
2. What percent does each source constitute?
3. How will these funding sources change over time?
www.gene2drug.com Confidential Slide 8

9. Funding Sources (continued)
Research in Action:
 Identify shifting
customer patterns:
“CROs may become a
key target market for
some product areas.”
Contracts expected
 Project realistic to increase 18.6%
revenue goals over the next 2-3
years
 Refine marketing
strategy
www.gene2drug.com Confidential Slide 9

10. Budget Size
Industry Academia
Pharma Biotech University Hospital
(15%) (18%) (38%) (12%)
39%………………Evaluate……..…………36%
59%…………Budget Authority……….…61%
Key Questions:
1. What are scientists’ annual operational budgets?
2. What percent is devoted to capital equipment,
instrumentation, and consumables?
3. How will these budgets change over time?
www.gene2drug.com Confidential Slide 10

11. Budget Size (continued)
Research in Action:
 Estimate how much
your customers have
available to spend
Lab budgets expected
 Project spending
to decrease from
estimates by product
category FY2008 to FY2009 by
6.3%
“Aren’t things better?”
 Stimulus aects mainly
academic labs
 Grants already approved
funded first
 Benefits from stimulus
expected late FY2009 (at
earliest)
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12. Types of Products — Consumables
Consumables
Cell biology kits and reagents

Cell culture media and reagents

Gene expression analysis products

Nucleic acid separation and purification products

Plasticware

Protein purification and separation products

RNAi products

Key Questions:
1. Who are the top suppliers in each category?
2. What are the expected changes in product spending?
3. What are common cost-saving measures for consumables?
4. How willing are respondents to switch suppliers?
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13. Consumables (continued)
Research in Action:
 Adapt product
development and
positioning to
customer behavior
 Attract new
customers with
targeted price
reductions
Ordering in bulk is
a common cost-
saving measure
for plasticware
www.gene2drug.com Confidential Slide 13

14. Types of Products - Instrumentation/Capital Equipment
Instrumentation/Capital Equipment
Cell biology instruments (Flow cytometer-based)

Cell biology instruments (Microscope-based)

Computer hardware

High throughput screening and analysis systems

Image analysis systems

Instrumentation for genomic analysis

Instrumentation for protein analysis

Key Questions:
1. Who are the top suppliers in each category?
2. What is the expected change in spending for
FY2009 compared to FY2008?
3. When was the most recent equipment purchase(s)?
4. Are respondents planning on purchasing equipment in
FY2009 and FY2010?
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15. Instrumentation/Capital Equipment (continued)
Research in Action:
 Help anticipate
decline in sales by
product category
 Make plans for
securing future sales
 Analyze one’s market
share relative to key
Instrumentation
competitors
for genomic
analysis is the
least aected
product category
www.gene2drug.com Confidential Slide 15

16. Lab Culture - Cost Saving Measures
Research in Action:
 Develop compelling
marketing strategies
to encourage sales by
segment
 Create reassuring ad
copy and sales
messages Adoption of
cost-cutting
 Understand regional measures can
impacts vary greatly by
market segment
www.gene2drug.com Confidential Slide 16

17. Lab Culture - Key Trends
Research in Action:
 Uncover product
lines vulnerable to
used instrumentation
market
 Re-evaluate value of
More West Coast
service oerings
respondents are
interested in USED high
 Assess success of
throughput screening
green strategies
instrumentation
Data presented by
market and region
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18. Lab Culture - What Suppliers Can Do
Research in Action:
 Learn how to entice
labs to buy more
 Understand your
customer credibility
More academic
 Discover unique ways
than industrial
to increase customer
loyalty respondents are
interested in buy
one get one free
oers
Data presented by
market and region
www.gene2drug.com Confidential Slide 18

19. Report At a Glance
Impact of Economic Crises on Laboratory Budgets
 FY2008 FY2009 annual operational budgets by market segment
 Percentage of budgets spent on major product categories
 Sources of lab funding for FY2008 FY2009
www.gene2drug.com Confidential Slide 19

20. Report At a Glance (continued)
Scientists’ Reaction to Economic Crises
 Impact of recession on current research by geographic region
 Level of concern regarding recession’s eects on research
 Top 3 areas in the lab most aected by economic climate
 Impact of budgetary restrictions on organizations
 Economic philosophy for managing lab budgets
www.gene2drug.com Confidential Slide 20

21. Report At a Glance (continued)
Anticipated Changes in Laboratory Purchases
 Top supplier(s) in each product category
 Expected changes in product purchases from FY2008 to FY2009
Capital Equipment:
Consumables:
Most recent purchases
Cost-saving measures used 

Intent to purchase in FY2009
Willingness to switch suppliers 

FY2010
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22. Report At a Glance (continued)
Adoption of Cost-Saving Lab Practices
 Current laboratory-wide cost-saving measures
 Interest in adopting additional cost-saving measures
 Eect of cost-cutting on service contracts
 Attractiveness of special oers from suppliers
 Interest in credibility of suppliers’ advice for how to conserve
reagents and extend the shelf-life of instrumentation
 Interest in willingness to pay for green products
www.gene2drug.com Confidential Slide 22

23. How This Report Works for You
This Report will enable you to…
 Provide valuable information to Boards of Directors, analysts and
investors
 Pinpoint areas of growth, stability and decline by market segment,
geographic region and product category
 Reposition marketing and sales resources
 Tailor marketing programs to increase customer loyalty prevent
switching to lower cost suppliers
 Target RD and Product Development towards growth areas
www.gene2drug.com Confidential Slide 23

24. Thank you
Questions? Or to purchase this report:
Mary Follin
703-778-3080 ext. 13
m.follin@gene2drug.com
Electronic/Enterprise: $5,200
Print Copy: $3,200
www.gene2drug.com Confidential Slide 24