Biotechnology Industry Trends

Growth in Venture Capital

Health Service Use Constant

Antibody Therapy for Cancer

The venture capital industry has grown rapidly in the last 20 years to fund the commercialization of promising new technologies. Venture capitalists are willing to take financing risks that regular banks avoid, and have developed expertise in various advanced technologies.

The monthly use of healthcare services by Americans has remained remarkably consistent over the past 40 years, according to the Agency for Healthcare Research and Quality. In an average month, 800 of every 1,000 Americans experience health-related symptoms; 217 visit a doctor, and eight are hospitalized.

Many human cancer cells multiply only after chemical receptors on the surface of a cell bind with specific signaling molecules in the cell's environment. By producing antibodies that attach to either the receptors or the signaling molecules, researchers have been able to block the growth signal. To produce antibodies that the body won't reject, but that can be grown in large quantities, researchers have fused human with cultured mouse cells to produce either human-mouse ("chimeric") antibodies or 100 percent human antibodies.

Licensing University Technology

Medical Advertising

Genomics

Successful commercial development by industry of science and technology first discovered at universities has prompted many universities to demand royalties and fees in exchange for licenses to their technology. A large number of patents are held by universities, led by the University of California, MIT, and the California Institute of Technology. Annual academic research spending at 190 top universities totals about $30 billion.

Some drug manufacturers and healthcare providers are advertising products and services directly to consumers, even though doctors must often prescribe the products or services. Advertisers expect that consumers will confer with their doctors, who may then prescribe treatment.

The complete sequencing of the human genome in 2001 (by Celera Genomics and the government-funded Human Genome Project) is expected to lead to the development of new therapies as researchers identify genes that control specific biological functions and as the interactions of genes and the proteins they produce become better understood. Identifying the estimated 30,000 protein-producing genes among the 3 billion coding elements is being done with the help of specialized computer programs.

Technology Transfer from Government

Managed Care Growth

Genetically Modified (GM) Foods

Technology once developed in secret for military purposes is now in the private sector as federal labs seek ways to commercialize their research. The transfer of government technology to industry is encouraged by the National Technology Transfer Center. Over 5,000 companies have entered research and development agreements with federal labs, with small companies getting preference.

Managed care now covers the majority of Americans. Government programs, including Medicare and Medicaid, have acquired many of the characteristics of managed care plans. For example, plans make payments only for allowed procedures and at a fixed price.

By introducing genetic material from one plant into another, researchers have produced plants with special characteristics, such as faster growth or resistance to insects and diseases. Monsanto has produced varieties of soybeans, cotton, and corn that are resistant to its Roundup herbicide, allowing the herbicide to be sprayed on fields without damaging the crop. Concerns remain about the effect GM plants will have on the ecosystem; regulators in some countries have prevented the use or import of GM foods.