| SIC Codes: | 2836 |
| NAICS Codes: | 325414 |
Companies in this industry manufacture drugs, therapies, vaccines, genetically modified food and fuel, and other products based on genetically manipulated compounds. Major companies include US-based Amgen, Biogen Idec, Genentech (owned by Switzerland-based Roche), and Monsanto; Cangene (Canada) and ADIMMUNE (Taiwan); and the biotech research arms of major international pharmaceutical companies such as Sanofi (France).
Demand for biotechnology 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 well over $500,000.
Biotechnology is used to produce drugs, therapies, vaccines, and medical diagnostic tests. It's also used to produce genetically modified (GM) plants and crops; DNA fingerprinting; environmental biotech products that aid in the clean-up of hazardous waste; and industrial biotech applications that help numerous sectors produce less waste and use less energy and water.
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