Cancer, AIDS tests drive diagnostics market

Health Industry Today, June, 1991

The most favorable sales opportunities for life science chemicals in the United States are in contrast agents and human vaccines and related materials, according to the report "Life Science Chemicals," released in April by The Freedonia Group Inc., Cleveland.

The life science chemical market will increase more than 11% annually to $15.5 billion in 1995 from $9.1 billion in 1990 (see accompanying table). Hospitals, which represent the largest market, will see strong growth due to diversity of product requirements and complexity of procedures, according to William Weizer, and analyst with Freedonia.

In vitro diagnostics will increase nearly 11% annually to $7.7 billion in 1995, the study said.

Growth will be fostered by three factors: the expanding adaptation of clinical chemistry and toxicology tests to computerized analysis and output systems; the increase of AIDS blood screening procedures; and the availability of more accurate immunological tests.

The best sales opportunities will be in diagnostics for cancer, AIDS and autoimmune disorders.

In vivo leads growth

In vivo diagnostics will grow more than 13% annually to $2.3 billion in 1995 due to the development of safer compounds and delivery systems and the expansion of medical imaging resources. Strongest demand is expected in non-ionic contrast agents for magnetic resonance imaging, ultrasound imaging and position emission tomography. There also will be high demand for monoclonal antibody-labeled radiopharmaceuticals for tumor detection.

          U.S. life science chemical market
                     ($ millions)
                                          Annual growth
Item              1980    1990    1995    1990-1995(%)
Hospitals          785   2,800    4,750       11.1%
Clinical labs      482   1,525    2,305        8.6
Alternate site
 facilities        263   1,395    2,510        ---
Other              957   3,380    5,935        9.1
TOTAL            2,487   9,100   15,500       11.2
Source: The Freedonia Group Inc., Cleveland, 1991