Bioinformatics Report - The forecasts and future of the market 2006-2011

1. Executive Summary: Bioinformatics 2006-2011

2.Introduction – Bioinformatics is A Key Enabling Technology in Drug Development
2.1 The World Pharmaceutical Market Continues to Grow, But Faces Mounting Challenges
2.2 The Continuing Success of the Pharmaceutical Industry is Dependent Upon Important Drivers and Restraints
2.3 The Pharmaceutical Sector Is Gradually Changing Its Strategic Focus to Overcome Challenges in the Market
2.3.1 Reducing Efficiencies in R&D Result in Concerns Over Thinning Pipelines
2.4 The Growing Market for Bioinformatic Products and Services: Where Information Technology Combines with Science & Research
2.4.1 Bioinformatics Is Highly Relevant to Pharmaceutical Development
2.5 Bioinformatics Developed As a Consequence of Increasing Requirements for Computational Resources in the Life Sciences
2.5.1 Computational Biology
2.5.2 The Human Genome Project Has Provided Important Scope for the Development and Use of Bioinformatics
2.5.3 Pharmacogenomics is Increasingly Relevant to Pharmaceutical Development
2.5.4 Proteomics Constitutes the “Next Step” After Genomics
2.6 Biological Databases
2.7 Bioinformatic Tools for Searching and Analysis
2.7.1 Sequence Analysis
2.7.2 Genomic Annotation
2.7.3 Similarity Searching
2.7.4 Analysis of Gene Expression
2.7.5 Analysis of Gene Regulation
2.7.6 Analysis of Mutations in Cancer
2.7.7 Analysis of Protein Expression
2.7.8 Structural Analysis of Proteins
2.7.9 Functional Analysis of Proteins
2.8 Other Applications of Bioinformatics with Relevance to Medicine
2.8.1 High-Throughput Image Analysis and Morphometrics
2.8.2 Modelling Biological Systems “In Silico”
2.9 Potential Benefits of Using Bioinformatic Tools in the Pharmaceutical Industry

3 Forecast of the Market for Bioinformatics, 2006-2011
3.1 Spending on Bioinformatics Will Increase Strongly from 2006-2011
3.1.1 The Race to Make Use of The Human Genome Has Already Started, Resulting In a Large Boost for The Sales of Bioinformatic Products and Services In the Pharmaceutical Sector
3.1.2 Bioinformatics Is An Emerging But Fragmented Industry
3.1.3 New Technologies Lead to An Increasing Demand for Bioinformatic Solutions
3.1.4 To Be Truly Successful, Bioinformatic Technology Providers Need to Understand the Value Chain in Drug Development
3.2 The US will Continue to Lead the World in Spending on Bioinformatics
3.3 Analytical Software Will Contribute the Highest Proportion of Revenues in the Global Bioinformatics Market
3.3.1 Emerging Bioinformatic Technologies Can Reduce The Time and Costs of Developing Drugs Significantly, But Greater Validation of the Technology is Required
3.3.2 Databases and Related Content Remain An Important Part of the Bioinformatics Market
3.3.3 High-Throughput Screening is Another Key R&D Technology that Serves As a Driver for Sales of Bioinformatic Tools for Data Storage and Analysis
3.4 The Share of Bioinformatics Revenues Contributed by Proteomic Applications Will Increase At the Expense of Genomic Applications
3.4.1 Genomics and Proteomics are Closely Linked, With The Profile of the Latter Rising
3.4.2 There is a Need For More Unified, Holistic Solutions in Bioinformatics
3.4.3 Pharmacogenomics Can Potentially Change The Paradigm of Drug Development
3.4.4 The Successful Application of Pharmacogenomics Will Require Regulatory Changes – Some Progress is Evident, But Much Uncertainty Remains
3.5 Conclusions from Visiongain’s Forecast for the Pharmaceutical Bioinformatics Market

4 A Discussion of Issues Affecting Bioinformatics in Pharmaceutical Applications
4.1 A SWOT Analysis for the Bioinformatics Sector With Relevance to Pharmaceutical Development
4.2 Bioinformatic Solutions Will Continue To Expand Their Presence in the Pharmaceutical Industry – Further R&D Efficiencies Are Predicted
4.3 Bioinformatic Applications Face No Significant Restraints to Their Continuing Adoption Within the Pharmaceutical Sector
4.4 Vast Amounts of Data Remain to Be Processed via Bioinformatics – There is a Need For Holistic Solutions In Particular
4.5 Bioinformatics Is Presently A Complex Mix of Public and Private Data Sources
4.6 Trends in the Market for Bioinformatic Products and Services with Pharmaceutical Relevance
4.7 Bioinformatics Is One of The Most Important Areas of Investment Among The Emerging Technologies
4.8 Benefits of Informatics in Drug Discovery & Development Are Real
4.9 Developments in Genomics Drive the Bioinformatics Market, With Benefits to the Pharmaceutical Industry Increasing from 2006-2011
4.10 Bioinformatics Companies Have To Change Their Commercial Focus If They Are to Succeed
4.10.1 Some Bioinformatics Companies Have Struggled In Recent Years
4.10.2 Leaders In Mainstream IT Provide Extra Competition for Specialised Bioinformatics Companies
4.10.3 Some Drug Discovery Companies Are Moving Into Bioinformatics
4.11 There is Still A Perception That Bioinformatic Solutions Are Restricted to Highly Specialised Applications
4.12 Recent Trends in the Business Strategies Adopted by Informatic Companies
4.12.1 The Decision to Adapt to Changing Market Demands
4.12.2 Informatics Companies to Span Life Science Market Areas
4.12.3 Changing the Focus from Informatics Services to Tackling Therapeutic Drug R&D Bottlenecks & Content
4.12.4 Expanding Services to Incorporate Drug R&D Processes
4.13 The Commercialisation of Informatics in the Pharmaceutical & Biotechnology Industry
4.13.1 Recent Trend from In Vivo Research to In Silico Research
4.13.2 A Shift in Commercial Focus for the Application of Informatics
4.13.3 The Use of Informatics to Transform Genomic Sequence Data into Drug Targets

5 Current Events in Bioinformatics That Are Indicative of the Prevailing Direction of The Sector
5.1 Fundamental Issues Affecting the Current Market
5.1.1 Broadening Business Strategy to Span other Life Science Areas
5.1.2 There is Intense Competition in the Bioinformatics Market
5.1.3 Lion Bioscience Sold Its Loss-Making Bioinformatics Unit
5.2 The Current Success of the Biotechnological Industry Will Greatly Benefit the Bioinformatics Sector
5.3 Broadening Business Strategy to Span other Life Science Areas
5.4 Partnerships in the Bioinformatics Sector
5.4.1 There is an Increasing Trend to Outsource, With India Being a Beneficiary
5.4.2 Bioinformatics Partnership Announced by IDBS and In Silico Discovery
5.4.3 Invitrogen Forms Collaboration with Solexa
5.4.4 Sigma-Aldrich Launches Online Tool for Analysing Biological Pathways
5.4.5 Novascreen Launches a Screening Service for Next-Generation Drug Screening
5.4.6 AstraZeneca Is Placing A Great Emphasis on Imaging Technology to Benefit Development
5.4.7 Sigma-Aldrich and Rosetta Inpharmatics Establish Partnership for siRNA Design
5.4.8 Collaboration Between GenoLogics Life Sciences Software and Bioinformatics Solutions Could Provide Important Gains in Proteomics Research
5.4.9 Capgemini wins IT Contract With Eli Lilly
5.4.10 Pfizer harnesses Indian IT and Bioinformatics Strengths
5.5 CuraGen Show Marked Innovation In Bioinformatics, Especially the Combining of Functions
5.6 Current Developments Will Have A Strong Positive Effect on Bioinformatics, With Benefits to Pharmaceutical R&D

6 Future Developments in Bioinformatics
6.1 Responses to Question Submitted to Experts in Industry and Academia Concerning Future Trends in Bioinformatics
6.1.1 Views on the Current State of the Bioinformatics Market
6.1.2 The Issues Needed to be Considered By Pharmaceutical Companies With Regard to Bioinformatics
6.1.3 Will Bioinformatics Significantly Increase Efficiencies in R&D?
6.1.4 What Are The Most Promising Applications in Pharmaceutical R&D?
6.1.5 Will Bioinformatics Become Increasingly Prominent in R&D?
6.1.6 Is Bioinformatics Truly Moving from Gene Discovery to Proteomics?
6.1.7 Will Bioinformatics Impact Upon Clinical Testing?
6.1.8 Will the Validation of Bioinformatic Tools Become Standard Practice?
6.1.9 The Role of Bioinformatics Companies
6.2 Academic Institutions Play An Important Role In Developmental Aspects of Bioinformatics
6.2.1 Leading Bioinformatics Groups Worldwide
6.2.2 Wellcome Trust Sanger Institute, UK
6.2.3 The Brutlag Bioinformatics Group - Stanford University, US
6.2.4 The University of Manchester Bioinformatics Group, UK
6.2.5 The European Bioinformatics Institute (EBI), UK
6.2.6 South African National Bioinformatics Institute (SANBI)

7 Conclusions
7.1 Bioinformatics and its Applications in the Pharmaceutical Industry
7.2 Visiongain Predicts Strong Growth in Revenues for Bioinformatic Services and Products
7.3 Analytical Software Will Contribute the Highest Proportion of Revenues in the Global Bioinformatics Market
7.4 The Bioinformatics Sector Will Benefit From Strong Driving Forces – Especially The Race To Apply Genomic Data
7.5 There Are Some Restraints to the Bioinformatics Sector But These Will Not Have a Particularly Drastic Effect
7.6 The Situation for Pharmaceutical Bioinformatics Is Very Positive Overall

Appendices
Appendix A. Transcripts of Interviews with Key Industry Experts
Appendix A.1 Interview with Dr Edward Maggio, Chairman & CEO, Structural Bioinformatics
Appendix A.2 Interview with Dr David Speechly, Vice President of Investor Relations, Applied Biosystems
Appendix A.3 Interview with Dr George J. Maalouf, President, Genomix Corporation
Appendix B. About visiongain

List of Tables
Table 2.1 Revenue Generation ($bn) by the World Pharmaceutical Industry, 1999-2005
Table 2.2 Informatic Market Segments Relevant to the Pharmaceutical Industry
Table 3.1 Total World Spending ($bn) on Bioinformatics, 2005-2011
Table 3.2 Total World Spending ($bn) on Drug Discovery, 2005-2011
Table 3.3 Spending on Bioinformatics As a Percentage (%) of Total Spending on Drug Discovery, 2005-2011
Table 3.4 Market Share (%) and Spending ($m) on Bioinformatics by Geographical Region, 2005 & 2011
Table 3.5 A Breakdown of World Bioinformatics Spending ($m) According to Product/Service Type, 2005-2011
Table 3.6 Contributions (%) to World Bioinformatics Spending According to Product/Service Type, 2005 & 2011
Table 3.7 Contributions ($m) to World Bioinformatics Spending by Applications for Pharmacogenomics and Protoeomics, 2005-2011
Table 3.8 Contributions (%) to World Bioinformatics Spending by Applications for Pharmacogenomics and Protoeomics, 2005-2011
Table 4.1 A SWOT Chart for the Bioinformatic Applications in the Pharmaceutical Sector, 2006-2011
Table 4.2 Expenditure of Leading Pharmaceutical Companies on New Technologies, 2005
Table 4.3 Different Types of Data & Information Analysed by Informatics Techniques
Table 7.1 Total World Spending ($bn) on Bioinformatics, 2005-2011
Table 7.2 Spending on Bioinformatics As a Percentage (%) of Total Spending on Drug Discovery, 2005-2011
Table 7.3 A Breakdown of World Bioinformatics Spending ($m) According to Product/Service Type, 2005-2011

List of Figures
Figure 2.1 Revenue Generation ($bn) by the World Pharmaceutical Industry, 1999-2005
Figure 2.2 The Increasing Average Cost ($m) of NME Development, 1976-2005
Figure 2.3 The Role of Databases in Life Sciences Research
Figure 2.4 Potential Applications of Informatics in Drug Discovery & Development
Figure 3.1 Total World Spending ($bn) on Bioinformatics, 2005-2011
Figure 3.2 Total World Spending ($bn) on Drug Discovery and Bioinformatics Compared, 2005-2011
Figure 3.3 Spending on Bioinformatics As a Percentage (%) of Total Spending on Drug
Figure 3.4 Total World Spending ($m) on Bioinformatics by Geographical Region, 2005 and 2011
Figure 3.5 Total World Spending (%) on Bioinformatics by Geographical Region, 2005
Figure 3.6 Total World Spending (%) on Bioinformatics by Geographical Region, 2011
Figure 3.7 A Breakdown of World Bioinformatics Spending ($m) According to Product/Service Type, 2005-2011
Figure 3.8 A Breakdown of World Bioinformatics Spending (%) According to Product/Service Type, 2005
Figure 3.9 A Breakdown of World Bioinformatics Spending (%) According to Product/Service Type, 2011
Figure 3.10 Contributions (%) to World Bioinformatics Spending According to Product/Service Type, 2005 & 2011
Figure 3.11 Contributions ($m) to World Bioinformatics Spending by Applications for Pharmacogenomics and Protoeomics, 2005-2011
Figure 3.12 Contributions (%) to World Bioinformatics Spending by Pharmacogenomics and Protoeomics, 2005 & 2011
Figure 4.1 Expenditure of Leading Pharmaceutical Companies on New Technologies, 2005