Legislation will increase R&D spending for animal biotech companies, benefiting revenue
New York, NY (PRWEB) April 01, 2014
The Animal Health Biotechnology industry is heavily dependent on external funding to drive the technologically sophisticated research that produces new animal healthcare products and services. As such, revenue contracted in 2009 as credit conditions tightened and funding sources dried up. However, the industry has experienced strong growth since the US economy has begun to recover; industry revenue is accordingly expected to grow 5.5% per year on average in the five years to 2014, to an estimated $7.9 billion. This increase includes expected revenue growth of 3.2% in 2014. According to IBISWorld Industry Analyst Jocelyn Phillips, “Opportunities for industry growth have largely been a result of public and private research and development (R&D) expenditure, which is expected to rise at an average of 1.9% per year over the five years to 2014.”
The largest companies in the industry are pharmaceutical manufacturers, which distribute vaccines, parasiticides and other pharmaceutical products for use with livestock, poultry, fish and companion animals. Recently, smaller biotech companies have focused on developing genetically modified and cloned animals, which may potentially limit livestock disease and enhance dairy and meat production. Overall, the number of industry operators has risen at an average annual rate of 2.4% over the five years to 2014, to an estimated 153 companies.
Revenue growth is expected to accelerate over the five years to 2019. “Industry growth will be positively impacted by recent Food and Drug Administration (FDA) announcements regarding food safety and cloning,” says Phillips. Furthermore, public and private R&D expenditure is expected to increase during the five years to 2019. During this period, animal biotech companies are expected to increasingly focus on genetically engineering animals to produce nutrient-enhanced products. Furthermore, the FDA is expected to decide whether it will allow the first genetically engineered animal (salmon) to enter the food production market, potentially driving investment for transgenic animal production, which involves inserting DNA from one species into another one to express that trait in the offspring.
For more information, visit IBISWorld’s Animal Health Biotechnology in the US industry report page.
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IBISWorld industry Report Key Topics
The Animal Health Biotechnology industry researches, develops, tests and distributes therapeutic drugs, diagnostic tools and preventive products for livestock and companion animals. In addition, companies provide tools that aim to improve farm animal breeding programs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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