Webinar: Prospering in a Down Market: Strategies for Life Science Suppliers

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Research in Action

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Prospering in a Down Market:Strategies for Life Science

Suppliers


Introduction Report Goals Report Leadership Team Questionnaire Design The Science Advisory Board

Today’s Agenda

*This presentation is meant to provide a broad overview and includes onlya small sample of the findings from the report.

What We Found Out* Changes in Sources of Funding Planned Changes in Expenditures by Product Category How Worried are the Scientists? A Window of Opportunity — How You Can Help

Wrap Up Report Summary Putting the Report to Work for You


Report Goals

This Report Will Enable You To:

Understand current sources of funding for life science research anddrug discovery efforts

Compare and contrast FY2008 (actual) and FY2009 (projected) budgets

Measure scientists’ level of concern with the impact of the economiccrises on their lab’s operating budgets

Anticipate purchases in capital equipment and consumables across 14product categories

Identify strategies labs will employ to “stretch” budgets and cut costs


Report Leadership Team

Tamara Zemlo, Ph.D. M.P.HAs Director of Syndicated Research and Analysis, Tamara serves as the company's senior technical andscientific analyst. Tamara has authored over 75 published reports for BioInformatics in addition to manyarticles on life science technologies for leading trade publications and scientific journals. Prior to joiningBioInformatics, Tamara was Associate Director of Science Policy for The Federation of AmericanSocieties for Experimental Biology (FASEB). She was also a Cancer Prevention Research Fellow at theNational Cancer Institute (NCI). Tamara received her Ph.D. in Oncology from the University ofWisconsin-Madison and her M.P.H. from Harvard University.

Stacy HankinAs Senior Business Analyst, Stacy's primary responsibilities include performing statistical analysis ofsurvey data, designing quantitative and qualitative studies, and ensuring client satisfaction with dataanalysis. She is often the lead analyst for studies designed to measure brand strength, customer loyalty andsatisfaction using a variety of analytical techniques and statistical models. Her work has been used tolaunch new brand platforms, measure the effectiveness of advertising campaigns, formulate customerretention strategies and acquire new customers through targeted messaging based on segmentationanalysis. Stacy received her bachelor's degree with a double major in Marketing and Logistics,Transportation and Supply Chain Management from the University of Maryland. She is currentlypursuing a Graduate Certificate in Survey Design and Data Analysis from George WashingtonUniversity.


Questionnaire Design


Questionnaire Design (continued)

Pharma(15%)

Biotech(18%)

University(38%)

Hospital(12%)

Source: The ScienceAdvisory Board

Segment influences experience with the economic recession: Funding sources Budget size Types of products used Lab culture

AcademiaIndustry

Hypothesis

Survey Populationn = 500+

Key Targets


The Science Advisory Board


Funding Sources

Pharma(15%)

Biotech(18%)

University(38%)

Hospital(12%)

Federal government grants Departmental funds Institutional funds Private foundation grants

R&D expenditure Departmental funds Institutional funds Venture capital

1. What are scientists’ sources of funding?2. What percent does each source constitute? 3. How will these funding sources change over time?

Industry Academia

Key Questions:


Funding Sources (continued)

Contracts expectedto increase 18.6%over the next 2-3years

Research in Action:

Identify shiftingcustomer patterns:“CROs may become akey target market forsome product areas.”

Project realisticrevenue goals

Refine marketingstrategy


Budget Size

Pharma(15%)

Biotech(18%)

University(38%)

Hospital(12%)

39%………………Evaluate……..…………36%

59%…………Budget Authority……….…61%

AcademiaIndustry

1. What are scientists’ annual operational budgets?2. What percent is devoted to capital equipment,

instrumentation, and consumables? 3. How will these budgets change over time?

Key Questions:


Budget Size (continued)

Research in Action:

Estimate how muchyour customers haveavailable to spend Project spendingestimates by productcategory“Aren’t things better?”

Stimulus affects mainlyacademic labs

Grants already approvedfunded first

Benefits from stimulusexpected late FY2009 (atearliest)

Lab budgets expectedto decrease fromFY2008 to FY2009 by6.3%


Types of Products — Consumables

Consumables

Cell biology kits and reagents Cell culture media and reagents Gene expression analysis products Nucleic acid separation and purification products Plasticware Protein purification and separation products RNAi products

1. Who are the top suppliers in each category?2. What are the expected changes in product spending?3. What are common cost-saving measures for consumables? 4. How willing are respondents to switch suppliers?

Key Questions:


Consumables (continued)

Ordering in bulk isa common cost-saving measurefor plasticware

Research in Action:

Adapt productdevelopment andpositioning tocustomer behavior

Attract newcustomers withtargeted pricereductions


Types of Products - Instrumentation/Capital Equipment

Instrumentation/Capital Equipment

Cell biology instruments (Flow cytometer-based) Cell biology instruments (Microscope-based) Computer hardware High throughput screening and analysis systems Image analysis systems Instrumentation for genomic analysis Instrumentation for protein analysis

1. Who are the top suppliers in each category?2. What is the expected change in spending for

FY2009 compared to FY2008?3. When was the most recent equipment purchase(s)? 4. Are respondents planning on purchasing equipment in

FY2009 and FY2010?

Key Questions:


Instrumentation/Capital Equipment (continued)

Research in Action:

Help anticipatedecline in sales byproduct category

Make plans forsecuring future sales

Analyze one’s marketshare relative to keycompetitors Instrumentation

for genomicanalysis is theleast affectedproduct category


Lab Culture - Cost Saving Measures

Research in Action:

Develop compellingmarketing strategiesto encourage sales bysegment

Create reassuring adcopy and salesmessages

Understand regionalimpacts

Adoption ofcost-cuttingmeasures canvary greatly bymarket segment


Lab Culture - Key Trends

More West Coastrespondents areinterested in USED highthroughput screeninginstrumentation

Research in Action:

Uncover productlines vulnerable toused instrumentationmarket

Re-evaluate value ofservice offerings

Assess success ofgreen strategies

Data presented bymarket and region


Lab Culture - What Suppliers Can Do

Research in Action:

Learn how to enticelabs to buy more

Understand yourcustomer credibility

Discover unique waysto increase customerloyalty

More academicthan industrialrespondents areinterested in buyone get one freeoffers

Data presented bymarket and region


Report At a Glance

Impact of Economic Crises on Laboratory Budgets

FY2008 & FY2009 annual operational budgets by market segment

Percentage of budgets spent on major product categories

Sources of lab funding for FY2008 & FY2009


Report At a Glance (continued)

Scientists’ Reaction to Economic Crises

Impact of recession on current research by geographic region

Level of concern regarding recession’s effects on research

Top 3 areas in the lab most affected by economic climate

Impact of budgetary restrictions on organizations

Economic philosophy for managing lab budgets



Anticipated Changes in Laboratory Purchases

Top supplier(s) in each product category

Expected changes in product purchases from FY2008 to FY2009

Capital Equipment: Most recent purchases

Intent to purchase in FY2009 &FY2010

Consumables: Cost-saving measures used

Willingness to switch suppliers



Adoption of Cost-Saving Lab Practices

Current laboratory-wide cost-saving measures

Interest in adopting additional cost-saving measures

Effect of cost-cutting on service contracts

Attractiveness of special offers from suppliers

Interest in & credibility of suppliers’ advice for how to conservereagents and extend the shelf-life of instrumentation

Interest in & willingness to pay for green products


How This Report Works for You

This Report will enable you to…

Provide valuable information to Boards of Directors, analysts andinvestors

Pinpoint areas of growth, stability and decline by market segment,geographic region and product category

Reposition marketing and sales resources

Tailor marketing programs to increase customer loyalty & preventswitching to lower cost suppliers

Target R&D and Product Development towards growth areas


Thank you

Questions? Or to purchase this report:

Mary Follin703-778-3080 ext. 13

[email protected]

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Print Copy: $3,200

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Webinar: Prospering in a Down Market: Strategies for Life Science Suppliers