An article reviewing the Bioinformatics Market scenario appeared on http://www.pharmaasia.com/ . The review suggests that the bioinformatics industry will be subjected to growth with different categories of firms (Biological/IT/multinationals/Domestic) entering its market. Indian bioinformatics vendors have a huge opportunity in bioinformatics services, customization of existing products and database licensing/creation/manipulation. However, they face certain challenges. By Poonam Bhana, Research Analyst, ValueNotes, India.
Key Trends
- Focus on target validation techniques – Advances in genomics and sequencing has made target identification easier through bioinformatics tools. The focus of bioinformatics in the drug discovery process has therefore shifted from target identification to target validation.
- Laboratory Information Management System (LIMS) tools – LIMS are tools that help automate collection and management of data generated in a laboratory. The market for LIMS products in India is estimated at $23 million in 2007, and is expected to grow at above 30% over 2007-2010.
- Trend towards enterprise solutions – Presently, majority of the bioinformatics revenues are derived separately from databases, services and software products. Hardly any vendor provides a complete enterprise solution. Driven by the need for integration of various databases/tools with R&D efforts, in the future, enterprise IT solutions should garner a larger share of the market.
- Long-term single vendor contracts – Companies with presence across various geographies require bioinformatics services on a global scale and often seek a single vendor that can offer a comprehensive range of services on a long-term basis, across the world. Understand and integrate a wide spectrum of emerging technologies with existing systems.
- Forward and backward integration – Pure play companies are opting for forward integration into contract research services, while pharma/Contract Research and Manufacturing Services (CRAMS) companies are also providing (or looking to provide) bioinformatics services.
- Inorganic growth – Several vendors are opting for strategic partnerships to strengthen their ability to scale, add to their service portfolio or increase client reach.
- Outsourcing of discovery informatics – Global companies were earlier outsourcing only clinical research related services to India. The implementation of Intellectual Property Rights (IPR) in India from January 2005 is gradually bringing global companies to India also for discovery services involving sensitive data.
Challenges and Critical Success FactorsIndian bioinformatics
Vendors have a huge opportunity in bioinformatics services, customization of existing products and database licensing/creation/manipulation. However, they face certain challenges like :Standardization of Service Platforms & Modular SystemsBioinformatics vendors work with varying standards and platforms. A major challenge is standardization of service platforms. Also, there is a need to offer more modular systems that can plug into other systems or well-documented application program interfaces already being used by their clients.
Problem of Market / Data Heterogeneity (Flexible tools)
Life Sciences companies may use different data formats, leading to incompatibility. Hence, it is a challenge for vendors to develop data integration tools to facilitate analysis of data sets from different sources. “Flexibility of a bioinformatics tool is essential for it to be a success. The tool should be flexible and allow for use in various applications," says Ajoy Singh, senior coordinator sales, Technoconcept (India) Pvt Ltd.Tools must be adaptable, readily configurable to support access to new data sources, instruments, tools and new functionality requirements.
Domain Knowledge and Experience
Bioinformatics is a highly specialized field where domain knowledge is more important than just cost. Lack of biological understanding can result in sophisticated computational methods being applied naively thereby leading to under-utilization of advanced tools. Hence finding the right team is vital.
Vendors have a huge opportunity in bioinformatics services, customization of existing products and database licensing/creation/manipulation. However, they face certain challenges like :Standardization of Service Platforms & Modular SystemsBioinformatics vendors work with varying standards and platforms. A major challenge is standardization of service platforms. Also, there is a need to offer more modular systems that can plug into other systems or well-documented application program interfaces already being used by their clients.
Problem of Market / Data Heterogeneity (Flexible tools)
Life Sciences companies may use different data formats, leading to incompatibility. Hence, it is a challenge for vendors to develop data integration tools to facilitate analysis of data sets from different sources. “Flexibility of a bioinformatics tool is essential for it to be a success. The tool should be flexible and allow for use in various applications," says Ajoy Singh, senior coordinator sales, Technoconcept (India) Pvt Ltd.Tools must be adaptable, readily configurable to support access to new data sources, instruments, tools and new functionality requirements.
Domain Knowledge and Experience
Bioinformatics is a highly specialized field where domain knowledge is more important than just cost. Lack of biological understanding can result in sophisticated computational methods being applied naively thereby leading to under-utilization of advanced tools. Hence finding the right team is vital.
