CDC Competition
Now Viewing CDC's competition in: Biotechnology Sector
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company commercialize its own products, or does it have a marketing partner? - Small companies often have marketing arrangements with larger companies.
How large is the potential market for the company's products? - The market for drugs and diagnostic devices can be measured by how many people are afflicted with a disease.
If the company does its own marketing, how large is its sales force? - Some large biotech companies have thousands of employees engaged in selling and marketing.
If the company makes and sells drugs, does it follow a high- or low-price strategy? - Pricing can give one company an advance over others with equally effective products.
Does the company work in a research area where competition is strong or weak? - Many companies work in areas of specialized research, where some research companies are well-known.
How does the company distribute its products? - Three large wholesale customers accounted for nearly 90 percent of Amgen's US gross product sales in a recent year.
Competitive Landscape
Demand for biotechnology research in the fields of medicine, agriculture, food, and science is driven by insurers' willingness to pay for new medical treatments, the global need to produce more food for a rapidly expanding population, and scientists' desire to find solutions for complex scientific and medical issues. Funding for biotech research is often provided by venture capital funds hoping to cash in on new products. The profitability of individual companies depends on the discovery and effective marketing of new products. Because the market for potential products is so large, small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research. The industry is capital intensive: average annual revenue per worker is more than $350,000.
Business Challenges
CRITICAL ISSUES
Expensive Development of Products, Uncertain Approval - The FDA and other regulators can decline to approve a new drug, even after years of internal testing and millions of dollars in expenses. Biotech companies take, on average, eight to 10 years to ready a single drug for FDA approval. Since the success of many biotech companies hinges on development of a single product, lack of approval can be financially fatal. Biotech firms also face extensive regulation abroad, particularly where genetically modified (GM) foods are concerned. The European Union requires labels that specify the presence of genetically modified organisms (GMOs), which some say is a technical barrier to trade that poses challenges to producers, consumers, and governments.
Companies Depend Highly on Patent Protection - Specialized biotech methods and products can be protected through patents, but only for 20 years from the date of application. By the time a new product is available, many years of development and testing may already have passed. The multiple patents on various biotech methods also leave companies open to patent infringement lawsuits.
Industries Where CDC Competes
- Government(primary)
- Business Services
- Health Care
- Health Care Services
- Pharmaceuticals
- Biotechnology
