High-Throughput Screening 2000:

New Trends and Directions

Presented by

 

HighTech Business Decisions

346 Rheem Blvd., Suite 208, Moraga, CA  94556

 

December 29, 2000

High-Throughput Screening 2000:  New Trends and Directions

 

FORWARD AND ACKNOWLEDGMENTS

 

            HighTech Business Decisions conducted the market research and wrote the report, High-Throughput Screening 2000: New Trends and Directions to provide a comprehensive market analysis of the high-throughput screening (HTS) market worldwide.  The research was specifically designed to understand HTS users’ perceptions, motivations, current practices, and future plans as regards targets, target types, assays, assay development, detection modes, microplate formats, outsourcing and other issues impacting current HTS operations.  The complete analysis, based on both user and supplier primary research, includes market size and growth, major players, user strategies and requirements, trends and technologies, and users’ future plans for technologies used in HTS operations.  In-depth data collected from both users and suppliers allowed for an objective and thorough analysis.

 

            We thank the 91 respondents from pharmaceutical, biotechnology, and supplier companies who took the time to share their insights, opinions, and future plans with us.  We thank our sponsoring companies, who supported this project with their ideas, suggested topics, and funding for the first few months of this four-month project. 

 

The sponsoring companies are, in alphabetical order, as follows: 

 

Amersham Pharmacia Biotech, Ltd.                  EVOTEC BioSystems AG

Applied Biosystems Group                               Kendro Laboratory Products

Aurora Biosciences Corp.                                Molecular Devices Corp.

Beckman Coulter, Inc., Bioresearch Div.           Packard BioScience Co.

BD Biosciences                                                Pharmacopeia, Inc.

Corning, Inc.                                                    Promega Corp.

Discovery Technologies                                    Tecan

                                                                                                           

            The following HighTech Business Decisions analysts and staff made important contributions to this research and report:

 

Analysts

Sandra J. Fox, MBA                      Project management, analysis, and report  

Lynne Sopchak, Ph.D.                     User interviews, analysis, and report

Helen S. L. Wang, Ph.D.                User interviews, analysis, and report          

Richard G. Khoury, Ph.D.              Supplier interviews and report

Lindsay H. Burns, Ph.D.                  Supplier interviews

 

Staff

Dorene Gonçalves                           Interview appointments, edits, production

Ellen Manning                                 Editor

Steve Sohner                                  Production

 

            We hope that our clients obtain significant value from this report to help ensure the success of their future business. 

                                                                                                Sandra J. Fox, MBA

                                                                                                President

 

December 2000

 

 

This report is Copyright protected by HighTech Business Decisions.  All rights reserved.  Printed and bound in the United States of America.  Neither this report, nor parts of it, may be reproduced without written permission from HighTech Business Decisions.

 

HighTech Business Decisions has exercised due care in compiling this report, which is based on publicly available information as well as information submitted by individual companies.  The company interview write-ups and profiles contained in this report are not intended to be a complete description of each company, but a paraphrased synopsis of interviews conducted with these companies in October and November 2000 combined with submitted material.  The publishers have taken due care to ensure the accuracy of this information, but shall not be held liable for any consequential damages arising from the material in this report. 


High-Throughput Screening 2000:  New Trends and Directions

 

 

TABLE OF CONTENTS

­­­­­­­­­­­­­­­­

Chapter 1:            EXECUTIVE SUMMARY

                                                                                                                                     

                        1.1   Introduction                                                                             1-1

                              1.2   Overall Market Evaluation                                                     1-2

                              1.3   Summary of Users’ Requirements                                          1-9

                              1.4   Summary of Suppliers’ Capabilities                                        1-16

 

 

Chapter 2:            METHODOLOGY, DEFINITIONS, AND ACRONYMS      

                             

                        2.1   Research Objectives                                                               2-1

                              2.2   Research Methodology                                                           2-1                2.3   Definitions                                                                                                                                      2-3

                              2.4   Acronyms                                                                                2-4

 

 

Chapter 3:            HIGH-THROUGHPUT SCREENING: MARKET OVERVIEW

                                                                                                                                     

                              3.1   Characteristics of the HTS Market                                        3-1

3.1.1   The Success of HTS                                                        3-2

3.1.2   HTS Products and Services                                            3-3

3.1.3   Supplier Acquisitions                                                     3-5

3.1.4   The Need for Drug Leads and Improved HTS Systems                        3-6

 

                              3.2   Determination of Market Size                                                 3-7

                                      3.2.1   Market Drivers and Enablers                                         3-7

                                      3.2.2   Pharmaceutical Sales and R&D Spending                      3-8

                                      3.2.3   Breakout of the R&D Budget                                         3-9

                                      3.2.4   Estimate Number of HTS Laboratories Worldwide          3-10

                                      3.2.5   HTS Market Estimate Based on HTS Laboratory Spending                 3-12

                                      3.2.6   HTS Market Estimate Based on Suppliers’ Revenues      3-14

                                      3.2.7   Market Size for HTS Products and Services in 2000      3-15  

                                      3.2.8   Size of the Market by Region                                          3-17

 

                              3.3   Market Growth                                                                        3-18

                                      3.3.1   HTS Market Growth Estimates                                        3-19

 

                              3.4   Opportunities in the Marketplace                                           3-20

                                      3.4.1   Customer Requirements                                                  3-21

                                      3.4.2   Areas of Opportunity for Suppliers                                3-23

 

Chapter 4:            ANALYSIS OF HTS OPERATIONS                                           

                              4.1   Company Backgrounds                                                           4-1

                                      4.1.1   Locations                                                                       4-2

                                      4.1.2   Number of HTS Employees In Individual Laboratories  4-2

                                      4.1.3   Titles                                                                              4-3

                                      4.1.4   Success of HTS in Respondent Companies                     4-3

                                     

                              4.2   Organization: HTS Operations Within the Company                      4-10

4.2.1   HTS Laboratory Functions Within Respondents’

           Organizations                                                                4-10

                                      4.2.2   Procedures for Dealing with Hits                                         4-16

                                      4.2.3   Procedures and Plans for In Vitro ADME/Tox Studies   4-19

                                                                                                                                               

                              4.3   Targets                                                                                    4-24

                                      4.3.1   Number of Targets                                                         4-24

                                      4.3.2   Target Validation                                                           4-26

4.3.3   Analytical Tools Used Prior to, During, or After Primary

           Screening                                                                       4-32

                                      4.3.4   Impact of Genomics                                                        4-37

                                      4.3.5   Target Types                                                                  4-45

4.3.6   Phage Display, Ribosomal Display, Proteins Expressed

           from cDNA Libraries                                                      4-47                                      

                              4.4   Throughput and Compounds                                                   4-48

                                      4.4.1   Current and Expected Throughputs                               4-48

                                      4.4.2   How Limits are Set                                                         4-54

                                      4.4.3   Compounds Tested Per Screen                                       4-57

                                      4.4.4   Compound Pooling                                                        4-58

                                      4.4.5   Selection Criteria for Compounds                                  4-60

                                      4.4.6   Sample Tracking                                                            4-62

                                     

                              4.5   Assays for Drug Discovery                                                     4-63

                                      4.5.1   Types of Assays Used                                                     4-63

                                      4.5.2   Best Assays for Producing Quality Leads                       4-69

                                      4.5.3   Assays Used for GPCR Targets                                      4-72

                                      4.5.4   Costs Per Data Point That Respondents are Willing to Pay     4-73

                                      4.5.5   Throughput versus Information                                             4-75

4.5.6   Opinions on Use of Microarrays and DNA Hybridization

           Arrays                                                                            4-79

                                      4.5.7   Use of Cell-Based Assays                                               4-84

                                      4.5.8   Advantages and Disadvantages of Cell-Based Assays   4-89

                                      4.5.9   Automated Incubation Systems                                       4-93

                                      4.5.10 Needs for New Assay Technologies for HTS                  4-85

 

4.6   Detection Modes                                                                     4-100

                                      4.6.1   Use of Detection Technologies                                       4-100

                                      4.6.2   New Equipment Purchases Planned                               4-105

                                         4.6.3   Purchase of Imaging Technology Planned                 4-107

                                      4.6.4   Cost Per Well and Expenditures                                     4-109

                                      4.6.5   Opinions on Label-Free Detection Modes                      4-111

                                     

                              4.7   Microplates and New Technologies                                       4-113

                                      4.7.1   Current and Expected Formats                                      4-113

                                      4.7.2   Anticipated Changes and Perceptions on Miniaturization      4-118

4.7.3    Possible Use of Microfluidic Chips, Microarrays, and

          Centrifugation                                                                4-121

                                               

                              4.8   Outsourcing                                                                             4-124

                                      4.8.1    Services Outsourced and Future Outsourcing Plans     4-124

                                      4.8.2   Primary Reasons to Outsource                                       4-125

                                      4.8.3   Services Needed                                                             4-127

                                               

                              4.9   Budgets                                                                                    4-130

                                      4.9.1   Average Expenditures for HTS Operations                    4-130

                                      4.9.2   Expected Changes in Budgets                                        4-132

                                      4.9.3   Factors that Influence Spending                                    4-135

 

                              4.10 New Technologies                                                                  4-136

                                      4.10.1  New Technologies Under Consideration                       4-136

                                      4.10.2  Techniques That Can Be Transferred to HTS                4-139

                                      4.10.3  Other Areas That Can Benefit from HTS Technologies 4-140

                                      4.10.4  Changes Needed in Bioinformatics                               4-142

                                      4.10.5  Bottlenecks in HTS and Drug Discovery                       4-145

                                      4.10.6  Opportunities                                                                4-148

 

Chapter 5:            ANALYSIS OF COMPANIES SUPPLYING HTS PRODUCTS

                              AND SERVICES

                             

                              5.1   Supplier Company Respondents                                             5-1

                                      5.1.1   Products and Services                                                    5-3

                                      5.1.2   Company Backgrounds and Growth                               5-16

                                     

                              5.2   Suppliers’ Observations                                                          5-23

                                      5.2.1   Customers’ Organizational Changes                              5-23

                                      5.2.2   Customers’ Needs for New Technologies                        5-24

                                      5.2.3   Customers’ Shifts in Detection Modes                            5-28

                                      5.2.4   Outsourcing Trends                                                        5-29

                                      5.2.5   How Genomics and Proteomics Will Impact HTS            5-31

                                     

                              5.3   Sales and Marketing                                                               5-33

                                      5.3.1   Attracting New Customers                                              5-33

                                      5.3.2   E-Commerce Programs                                                   5-36

                                      5.3.3   Trade Shows                                                                  5-38

 

                              5.4   Working With Customer Companies                                      5-39

                                      5.4.1   Suppliers’ Customers and Regional Sales                       5-39

                                      5.4.2   Working with Customers to Solve HTS Problems            5-43

                                                                                                                                       

                              5.5   New Technologies and Trends                                               5-45

                                      5.5.1   New Technologies for HTS                                             5-45

                                      5.5.2   Observations on Bottlenecks                                          5-50

                                      5.5.3   Trends                                                                            5-54

                                     

 

Appendix A:           Interviews with 52 HTS Directors Worldwide

Appendix B:           Suppliers of HTS Products and Services

Appendix C:           Interview Guide for Pharmaceutical and Biotechnology Company

                              Respondents

Appendix D:           Interview Guide for Supplier Company Respondents

 

                                                                                                                                   

High-Throughput Screening 2000:  New Trends and Directions

 

 

LIST OF TABLES

 

Chapter 1                                                                                                                   

 

1.2-1          Worldwide R&D Spending in US$M: 2000                                                1-5

1.2-2          Worldwide Market Forecast: HTS in the Year 2000                                   1-8

1.2-3          Worldwide Market Forecast: HTS Markets in 2000 and 2002                    1-8

1.3-1          Target Types                                                                                              1-12

1.3-2          Current and Expected Number of Compounds Tested Per Screen               1-12

1.3-3          Assay Types as a Percentage of all HTS Assays                                          1-13

1.3-4          Average Percentage of Detection Modes Used                                           1-15

1.3-5          Wish List for Improvements                                                                        1-16

1.4-1          Number of Employees, Years in Business, Revenues from HTS                   1-17

1.4-2          Areas of Opportunity                                                                                  1-17

1.4-3          The Most-Often Mentioned Ways to Attract Customers                              1-19

1.4-4          Suppliers’ Responses to the Number One Trade Show for HTS                  1-19

 

Chapter 2

 

2.2-1          Market Research Steps                                                                              2-2

2.4-1          List of Acronyms                                                                                        2-4

 

Chapter 3

 

3.1-1          Summary of Parent Companies and Subsidiaries in the HTS Market            3-5

3.1-2          Drug Development Statistics                                                                       3-6

3.2-1          Regional Pharmaceutical Sales                                                                    3-8

3.2-2          Worldwide Drug Discovery Screening Expenditures in US$B: 2000            3-10

3.2-3          Number of HTS Laboratories Represented by Respondents in Study           3-11

3.2-4          Estimate of Total Number of HTS Laboratories Worldwide                         3-11

3.2-5          HTS Market Size Based on Average User Spending in 2000                       3-13    

3.2-6          Comparison of Individual Total Budgets as Reported by Respondents         3-14

3.2-7          The Number of HTS Suppliers by Product and Service Category                3-15

3.2-8          Estimated Market Size from Average Supplier Revenues (US$)                   3-15

3.2-9          Regional Markets                                                                                       3-17

3.3-1          Worldwide Market Forecast: HTS in 2000 and 2002                                  3-20

3.3-2          Worldwide Market Forecast: HTS Markets in 2000 and 2002                    3-20

 

Chapter 4

 

4.1-1          Pharmaceutical and Biotechnology Company Respondents                          4-1

4.1-2          Number of Employees in HTS Laboratories                                                4-2

4.1-3          Percentage of Targets That Have Generated Leads                                     4-5

4.1-4          Number of Leads Generated by 45 Reporting Laboratories                         4-6

4.1-5          Drug Candidates from HTS: Individual Responses                                       4-8

4.2-1          Number of HTS Laboratories Per Company                                               4-10

4.2-2          Timing of ADME/Tox Studies                                                                     4-19

4.3-1          Number of Disease Targets Screened: 2000 and 2002                                4-24

4.3-2          Number of Molecular Targets Screened: 2000 and 2002                             4-24

4.3-3          Use of Analytical Software Tools                                                                4-33

4.3-4          Target Types                                                                                              4-45

4.3-5          Therapeutic Areas by Target Type                                                              4-46

4.4-1          Major Pharmaceutical Companies: Current/Expected Throughput                4-49

4.4-2          Smaller Pharmaceutical Companies: Current/Expected Throughput              4-50

4.4-3          Comparison of 12 Individual Laboratory Throughputs: 1999 and 2000        4-52

4.4-4          Limits on the Number of Samples Screened                                                4-54

4.4-5          Limits on the Number of Screens                                                                4-56

4.4-6          Current and Expected Number of Compounds Tested Per Screen               4-57

4.4-7          Compound Selection Criteria                                                                      4-61

4.4-8          Number of Respondents Using Sample Tracking and Coding Systems         4-63

4.5-1          Assay Types as a Percentage of All HTS Assays                                         4-64

4.5-2          Number of Respondents Using Each Assay Type                                        4-65

4.5-3          Detection Modes Used with Each Assay Type                                            4-67

4.5-4          Opinions on the Best Assays for Finding High-Quality Leads                       4-70

4.5-5          Opinions Regarding Assays That Could Be Replaced by Microarrays          4-79

4.5-6          Expectations of the Use of Cell-Based Assays: 2000 to 2002                      4-85

4.5-7          Average Percentage Use of Cell-Based Assays                                           4-85

4.5-8          Average Percentage of Cell-Based Analysis Throughput                              4-87

4.5-9          Benefits and Drawbacks of Cell-Based Assays in Primary Screening           4-90

4.5-10        Wish List of Improvements in HTS Assays                                                  4-97

4.6-1          Average Percentage of Detection Modes Used                                           4-100

4.6-2          Most Prevalently Used Detection Modes: 2000 and 2005                           4-101

4.6-3          Drivers of Change in Detection Modes                                                        4-103

4.6-4          Detection Modes: Number of Targets and Purchases Planned                      4-106

4.6-5          Costs/Well, Microplate Densities, Expenditures by Detection Mode            4-110

4.6-6          Perceptions of Label-Free Detection                                                           4-111

4.7-1          Percentage Use of Microplate Formats Used in 2000 by Density                 4-113

4.7-2          Average Percentage Use of Microplate Formats in HTS Operations            4-114

4.7-3          Trends in Density: Numbers of Laboratories Using Specific Formats            4-116

4.7-4          Number of Laboratories Using Various Format Ensembles                          4-117

4.8-1          Average Percentage of Workload Outsourced                                            4-125

4.8-2          Reasons to Outsource                                                                                 4-126

4.8-3          List of Desired Services for Outsourcing                                                      4-128

4.9-1          Average Total HTS Budgets as Provided by Respondents                           4-130

4.9-2                   Major Pharmaceutical Companies: Average Budgets                                   4-131

4.9-3                   Smaller Pharmaceutical/Biotechnology Companies: Average Budgets           4-131

4.9-4                   Total Expenditures by Category at All Reporting Respondent Labs              4-132

4.10-1        New Technologies Being Considered for Use                                             4-137

4.10-2        List of Areas Where HTS Technologies Could be Used                              4-141

4.10-3        HTS Directors’ List of Significant Bottlenecks in HTS                                 4-145

4.10-4        HTS Directors’ List of Significant Bottlenecks in Drug Discovery                 4-147

4.10-5        What HTS Directors Want from Suppliers                                                  4-148

 

Chapter 5

 

5.1-1          HTS Product and Service Supplier Respondents                                         5-1

5.1-2          Summary of Parent Companies and Subsidiaries                                          5-2

5.1-3          New Products and Services                                                                        5-4

5.1-4          Number of Employees, Years in Business, Revenues from HTS                   5-17

5.1-5          Revenue Growth for HTS Products and Services, 1999 to 2000                 5-17

5.1-6          Areas of Opportunity                                                                                  5-18

5.1-7          Organizational Changes at Supplier Companies                                           5-20

5.2-1          Suppliers’ Observations on Customers’ Needs for Innovation                      5-24

5.3-1          The Most-Often Mentioned Ways to Attract Customers                              5-34

5.3-2          Suppliers’ Responses to the Number One Trade Show for HTS                  5-38

5.4-1          Detailed Analysis of Regional Sales Percentages                                          5-42

5.5-1          Areas of Advancement: Ranked by Importance for HTS Operations            5-45

5.5-2          Technologies in Development That Will Provide Breakthroughs                   5-47

5.5-3          Technology Areas to Invest In For HTS                                                      5-49

5.5-4          Suppliers’ Responses to the Number One Bottleneck in HTS                      5-50


High-Throughput Screening 2000:  New Trends and Directions

 

 

LIST OF FIGURES

 

Chapter 1

 

1-A            Worldwide Spending in 2000                                                                      1-5

1-B            Worldwide HTS Market Size in 2000 by Product/Service Category            1-6

1-C            Worldwide HTS Market Size in 2000 by Product/Service Category            1-7

1-D            Percentage Use of Microplate Formats (2000, 2002, 2005)                        1-10

1-E            Average Number of Molecular Targets Per HTS Laboratory                       1-11

 

Chapter 3

 

3-A            R&D Expenditures: Pharmaceutical and Biotechnology Sectors                   3-9

3-B            Worldwide R&D Screening and Testing Expenditures in 2000                     3-10

3-C            Worldwide HTS Market Size in 2000 by Product/Service Category            3-16

3-D            Worldwide HTS Market Size in 2000 by Product/Service Category            3-17

 

Chapter 4

 

4-A            Number of People in HTS Laboratories                                                      4-3

4-B            Number of Years HTS Operations Have Been in Place                               4-4

4-C            Percentage of Targets that Generate Leads                                                  4-5

4-D            A Typical Organization of an HTS Group                                                    4-13

4-E            Respondents’ Plans for Integrating ADME/Tox In Primary Screening           4-22

4-F            Average Number of Molecular Targets Per HTS Laboratory                       4-25

4-G            Respondents’ Perceptions on the Future Impact of Genomics                      4-37

4-H            Major Pharmaceutical Co.: Weekly Throughput                                          4-49

4-I             Smaller Pharmaceutical/Biotechnology Co.: Weekly Throughput                  4-50

4-J             Average Current and Expected Throughput                                                 4-51

4-K            Average Number of Compounds Tested Per Screen                                   4-58

4-L            Number of Different Assay Types User Per Laboratory                               4-66

4-M           High-Information Content vs. High-Throughput: Primary Screening              4-76

4-N            Detection Modes Expected to Increase in Percentage Use                           4-102

4-O            Detection Modes Expected to Decrease in Percentage Use                         4-102

4-P            Average Percentage Use of Microplate Formats: Comparison ’99-‘00        4-114

4-Q            Percentage Use of Microplate Formats (2000, 2002, 2005)                        4-115

 

Chapter 5

 

5-A            Number of HTS Customers Served by Each Reporting Supplier Co.           5-41