The Global Biotechnology Industry Outlook - 2024

 

The Global Biotechnology Industry Outlook - 2024

The global BioTech Industry was above average in terms of performance last year. It was full of innovations, new technologies entered the market, new approvals such as first CRISPR gene therapy, Casgevy created history. Innovations in healthcare technology kept the morales of the stakeholders high amid market volatility. The commitment of companies launching novel cell and gene therapies to revolutionize patient lives can be realized through effective preparation of the market, their products, and internal go-to-market strategies.

2024 alone is projected to see the launch of up to 21 cell therapies and 31 gene therapies. Personalized mRNA vaccines in cancer (such as melanoma, pancreas, and others) will be an emerging therapy this year.

MarketsandMarkets has identified more than 10 global trends in the entire BioTech value chain and the report Global BioTech Industry Outlook 2024 analyses the events of 2023 while exploring new opportunities in 2024.

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Performance of the last year i.e. 2023

1. The global biotech industry grew from USD 366.7 bn in 2022 to USD 412.2 bn in 2023, at a CAGR of 12.3%.
2. Genomics was one of the hottest segments in this period, as it grew from USD 18.9 bn in 2022 to USD 19.6 bn in 2023, with the DNA sequencing segment leading the market followed by PCR techniques.
3. Allogeneic cell therapy, microbiome marvels, and CRISPR- Cas9 technology were hot in many markets, especially the US. In 2023, medicine based on gene editing was approved for the first time.
4. Biologics safety testing attracted stakeholders as it grew from USD 3.7 bn in 2022 to USD 4.0 bn in 2023.
5. M&A in biotech was slightly low compared to previous years but still better than Medtech segments, as major players acquired companies to strengthen their drug pipelines. It started on a good note but dipped beyond Q3’23, attributed to the war in Israel, rising crude oil prices, supply chain disruptions, and market volatility, among other reasons.
6. FDA and regulatory bodies in Europe, China, Australia, India, and others are taking a special interest in gene-editing therapies.
7. According to HSBC data, the first half of 2023 saw investors injecting USD 2 billion into 81 seed and Series A deals for biotech companies, marking a slower pace compared to the preceding three years. The overall venture investment in the sector amounted to USD 10.6 billion across 320 deals, figures that also fall below recent levels.
8. Overall, biotech attracted favorable sentiments, as companies thrive in north America and Europe. China was a confusing market, as VBP brought down the profit margins of many drug manufacturers, with further losses expected in Q4 2023 (new tenders were floated in Oct’23 and results expected in Jan’24) once the financial results are out in early 2024.

Expectations from the year ahead i.e. 2024

1. The global biotech industry is expected to reach USD 465.9 bn in 2024.
2. The approval of the first CRISPR gene therapy, Casgevy, in December 2023 opens the doors to unlocking the full potential of CRISPR-based therapies in 2024.
3. 2024 projections estimate that up to 21 cell therapies and as many as 31 gene therapies may be launched.
4. Despite hype around cell and gene therapy, C&G manufacturing may face hurdles due to capacity crunch and other reasons.
5. Like other industries, AI is expected to make significant contributions to various aspects of biotechnology, enhancing research, drug discovery, diagnostics, and personalized medicine. Forecasts show that generative AI implementation may increase sales productivity by 3–5% (from current numbers).
6. Trade-offs between China and the US, China-Australia low trade, and supply chain disruptions due to market volatility and war are pushing major Biotech hubs to create a local value chain and keep the production costs in check.
7. Inflation pushed us regulators and resulted in unpleasant side effects on the market. The IRA could be just the beginning in 2024. Big players such as Pfizer, Sanofi, and Baxalta are expected to increase their drug prices in Q1 2024.
8. More CROs are opting for mobile-based eCRFs (patients are advised to report clinical trial information directly from their mobile devices into the electronic case report forms). The use of AI/ML in clinical trial was a hot topic in 2023 and shall remain so in 2024.
9. Pfizer, Bristol-Myers Squibb, Novartis AG, Allogene Therapeutics, CRISPR Therapeutics, and Bluebird Bio are ahead in the cell and gene therapy segment, globally. Cell and Gene Therapy shall remain one of the highest growth and focused segments this year. Markets and Markets forecasts a potential launch of up to 21 cell therapy and 31 gene therapy products.
10. The pharmaceutical Biotechnology segment is expected to ride the wave of AI, Gen AI and Digital Twins. Exscientia became the first company to use AI to fully develop a drug and advance its clinical trials. It has pipelines in clinical trials to enter the clinic in 2024. By using AI, Insilico claims to discover a drug compound in just 46 days, significantly reducing the time frame for new drug development. Insilico expects to receive results for pipeline trial before the end of 2024. XtalPi has partnered with Pfizer and Goldman Sachs and is using AI and quantum computers to create “digital twins” of potential drugs to predict and assess their effectiveness.
11. Offshoring will continue in India, Vietnam; the demand for localized manufacturing is rising in some regions (Saudi Arabia, the UAE, etc.). The UAE aims to become a pharma hub for MENA and Central Africa; the US wants to be a hub for domestic consumption, indirectly reducing dependency on China. How can I plan a market entry in 2024? Who can help me? Where do I find the experts?
12. There are ~200 commercially available biologics and > 10,000 candidates undergoing clinical assessment across the globe. How can I create a tracker to track the day to day clinical intelligence?
13. Under the Rescue Plan Act, US drug companies must rebate the Medicaid program if the price increases on prescription medicines outpace inflation. This year, we expect rebates that could even be larger than the actual net cost of the drug. What will the drug manufacturers do?
14. The demand for real-world data (RWD) and real-world evidence daya (RWE) is expected to grow as more CDMO, CMO, CRO and Bio-Pharmaceutical rides the AI-enabled Digitization wave. Who all have budgets to ride this digitization and change? Where are they located? Do they already have ICT partners or are they looking for new companies?
15. Manufacturing processes are expected to see increased automation, precision, and scalability as stakeholders focus on optimizing the production of biopharmaceuticals and other bioproducts. Generative AI or AI/ML tool integration is expected to gain traction among stakeholders this year.
16. A CAGR of 13.0% is expected between 2023 and 2024 due to regulations, the demand for automation, and AI business excellence, among other drivers.
17. CGT, cancers, and immunotherapies will continue to evolve, attracting investors across developed markets. Which one is the safest bet? Where should I put my money?
18. The use of CRISPR in biomedical research is expected to create lucrative opportunities in the mice model market. The market is expected to grow from USD 1.20 billion in 2023 to USD 1.36 billion in 2024 at a YoY growth rate of 13.1%. How can I make money? How can I use this technology in my current setup? Which Biotech companies are currently using CRISPR?
19. Recent developments in gene therapy signify a transformative era in medicine, offering innovative solutions for diseases with a genetic basis. Continued progress in this field holds the promise of bringing about revolutionary changes in healthcare, providing more effective and personalized treatments for a diverse range of conditions. In August 2023, the FDA granted fast-track designation to TSHA-102 to treat individuals afflicted with Rett syndrome. In May 2023, Ray Therapeutics concluded a Series A funding round, securing USD 100 million. The objective is to propel the advancement of optogenetic gene therapies. How will this segment grow in 2024? Can Markets and Markets help me track this segment?
20. Biotech and pharma companies and CROs and CDMOs as stakeholders are already building their own manufacturing facilities for producing materials needed for early-phase clinical trials. How can I supply raw materials to these units in 2024? Where are they located?
21. Everybody is doubtful about their businesses flourishing in markets like China. It may remain a puzzle for many MNCs as the VBP has started showing a negative impact on drug prices (profit margins). Though the VBP may be good news for Chinese customers/patients, the same cannot be said for drug manufacturers and suppliers (MNCs). Who can help me mitigate the risks in 2024?

There are several burning questions like this, and manufacturers, suppliers and distributors are eager to understand the market dynamics by regions, regulation, pricing and more. We, at Markets and Markets cover 100s of such biotech industry growth segments by country and by technology. Our reports cover comprehensive market pulse, and our experts can support you through the Go-No Go dilemma phase and provide actionable insights using data sciences, market research and access to key opinion leaders of the industry. We are one of the leaders who track biotech industry trends and Biotech sectors for you.

Biotechnology: Revolutionizing Healthcare from the Inside Out

Biotechnology is leading the way in the paradigm shift in healthcare by fusing cutting-edge technology with biological processes to produce game-changing solutions. This dynamic field—often shortened to "healthcare biotech"—is drastically changing the medical environment by providing never-before-seen possibilities for prevention, diagnosis, and treatment.

One of the most significant impacts of biotech in medical field lies in its ability to target diseases at their very core. Through the utilization of cells, genes, and biomolecules, scientists are creating novel treatments that target the underlying causes of diseases rather than just their symptoms. Just a few instances of the revolutionary potential of healthcare biotech include personalized cell therapies that regenerate damaged tissues or genetically engineered viruses that target cancer cells specifically.

Beyond therapy, biotech is transforming diagnostics in the medical field. Advanced genetic and molecular analysis has revealed biomarkers that enable earlier and more precise disease detection, prompt intervention, and better patient outcomes. Imagine personalized cancer screenings based on unique genetic profiles, or non-invasive blood tests that identify early indicators of Alzheimer's disease. These developments provide vital information for better informed healthcare decisions, empowering physicians and patients alike.

Moreover, personalized medicine is being made possible by the use of biotechnology in healthcare. Medical professionals are able to customize treatments and interventions to the individual needs of each patient by knowing that each patient has a unique genetic makeup and biological response. This biotech-driven strategy has great potential to reduce side effects and increase treatment efficacy, which will ultimately result in a future of truly effective and personalized healthcare.

However, navigating the exciting world of biotech in the medical field also requires careful consideration of ethical and regulatory challenges. Maintaining patient safety, equitable access, and responsible development are still of utmost importance. Following these guidelines will be essential as we delve deeper into this revolutionary field in order to fully utilize healthcare biotech for everyone's benefit.

In summary, biotechnology in healthcare is more than just a catchphrase; it's a major force behind advancement and innovation in the industry. The future of healthcare is clearly entwined with biotech advances, ranging from personalized medicine and targeted therapies to advanced diagnostics and regenerative solutions. We can give future generations a healthier future by wisely navigating the difficulties and utilizing this field's enormous potential.

Navigating the Maze: Major Players in the Global Biotechnology Industry

The global biotechnology sector, teeming with biotechnology companies (often shortened to biotech companies), is a dynamic and diverse landscape fueled by innovation and discovery. These businesses, which range from agile startups to massive pharmaceutical companies, are advancing science and medicine and influencing the direction of healthcare.

Among the major players in this biotechnology sector are established biotech companies like Amgen, Gilead Sciences, and Biogen. These seasoned professionals in the field have a vast array of approved medications and treatments, especially in the fields of immunology, oncology, and rare diseases. Their R&D pipelines are full of promising candidates, so there will always be a fresh supply of cutting-edge treatments available to patients around the globe.

Beyond established names, the biotechnology sector is buzzing with smaller, agile biotech companies known for their niche expertise and disruptive potential. These businesses frequently concentrate on particular disease categories or cutting-edge medical innovations like gene editing or personalized care. Examples are CRISPR Therapeutics, at the forefront of gene editing applications, and Moderna, a pioneer in mRNA technology. These versatile players add fuel to the innovation engine, commonly work alongside larger biotech companies to bring breakthroughs to reality.

The biotechnology sector is not limited to any one area when it comes to geography. With well-known titans like AbbVie and Amgen, North America is home to strongholds like Roche and Novo Nordisk, but Europe is truly remarkable. With businesses like BeiGene and WuXi AppTec making major advancements in R&D and drug development, Asia, and China in particular, is quickly becoming a central role. Progress in the biotechnology sector is accelerated by the global environment, which encourages healthy competition and collaboration.

Navigating the complexities of the biotechnology sector is not without its difficulties, though. Obstacles to entry and expansion can include fierce competition, intricate regulatory requirements, and the high cost of research and development, especially for smaller bio technology companies. Furthermore, cautious navigating of the ethical issues surrounding gene editing and personalized medicine is necessary to guarantee responsible development and fair access.

In spite of these obstacles, the biotechnology sector has an unquestionably bright future. Bio technology companies have the potential to completely transform healthcare by providing solutions for unmet medical needs and enhancing the lives of patients all over the world. This can be achieved through sustained technological advancements, growing collaboration, and increased investment. To fully realize the enormous potential of this rapidly expanding industry and create a healthier future for all, it will be imperative that we remain informed about the major players, new trends, and moral issues as we go forward.

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Peering into the Future: Emerging Trends Driving Growth in the Global Biotech Industry

Rising trends that have the potential to completely transform healthcare are driving a recent surge in growth in the global biotechnology industry, which is teeming with innovation and discovery. These biotech trends are influencing how the medical field and patient care will develop in the future, from using artificial intelligence to its full potential to discovering the mysteries of the microbiome.

The incorporation of artificial intelligence (AI) is one of the key biotechnology trends propelling growth. Artificial intelligence (AI) algorithms are revolutionizing drug discovery by sifting through enormous datasets to find possible drug targets and quicken the development process. Envision AI-driven systems sorting through millions of compounds to determine their potential for therapeutic use, greatly cutting down on the time and expense required to introduce new medications to the market.

AI is influencing other important facets of the biotechnology industry growth in addition to drug discovery. Imagine superhuman accuracy in medical image analysis by AI-powered diagnostics, resulting in earlier and more accurate diagnosis. Alternatively, think about robotic surgery with AI assistance, which offers patients minimal invasiveness and enhanced precision. These AI-powered innovations aren't just sci-fi ideas; they're the biotechnology trends that are actively driving the sector forward.

The study of the microbiome is another emerging trend in the biotechnology sector. Our bodies are home to a complex ecosystem of bacteria that has enormous potential for diagnosing and treating a wide range of illnesses. Scientists are investigating the potential of modifying the microbiome to treat allergies, inflammatory bowel disease, and even specific types of cancer. Imagine customized probiotic regimens based on each person's distinct microbiome, opening the door for profoundly impactful biotechnology-driven solutions.

Furthermore, personalized medicine is a major biotechnology trend. Through the analysis of biomarkers and genetic composition, scientists are able to customise treatments for individual patients. The trend toward personalization has great potential to increase treatment effectiveness and reduce adverse effects. Imagine treatments for cancer that precisely target specific mutations or immune-oncology procedures that use the patient's own immune system to combat the illness. Future biotech trends point to a time when personalized healthcare will replace the current one-size-fits-all approach.

However, navigating the exciting world of emerging biotechnology trends requires careful consideration. Ensuring responsible development, equitable access, and patient safety remains paramount. As we venture deeper into this transformative field, upholding these principles will be crucial to harnessing the full potential of biotechnology for the benefit of all.