As a marketing consultancy that serves the research biotools industry, Percepta’s business is more or less directly linked to the market dynamics of life science research in general. These market dynamics can be – well … dynamic. For example, as noted in earlier posts, research funding is the engine that drives the research biotools industry and to a large degree as funding goes – so goes the biotools industry. Recent years have presented a difficult funding environment for US researchers and, as a consequence, many biotools suppliers. That’s why we believe things are about to get a whole lot better for biotools suppliers that serve the American life science research markets.
Here’s why – Percepta sponsored a research study in June/July to assess the ‘optimism’ of life science researchers in light of the American Recovery and Reinvestment Act of 2009. There was a lot of good information that came out of that research study but a couple of facts stood out to us. Altogether, the NIH budget for extramural grants is enjoying a 55% increase over last year. Of the $9 billion dollars slated for new NIH grants to be funded in 2009-2010 there is still a little over $7.4 billion that has yet to be distributed to researchers. Better yet, the vast majority is expected to hit the coffers of research labs by March 2010!
It is not exactly a secret that a significant portion of that funding will be spent on consumables like reagents, kits and enzymes as well as new research equipment though out American universities, colleges, research institutes, and potentially any lab funded by the NIH. We should soon be hearing a great big ‘cha-ching’ for the biotools industry.
Which companies will benefit the most? Well that depends on many things but one thing is certain – companies that understand their customers well, because they have profiled them and use that information to serve them better, will be in the best position to capture a healthy slice of the stimulus pie. Biotools suppliers that don’t really understand their customer and rely on one-size-fits-all, shotgun marketing may well be left licking the knife.
If licking the knife seems like a dangerous proposition, think about letting Percepta help you understand your customers and your markets better. Also, download the free report Life Science Research Funding Optimism In The United States: A Researcher’s Perspective compliments of Percepta.
Let us know what you think. Your comments are welcome.