The Comprehensive Report
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1 Improved Screening, Adapted Technologies and Enhanced Assays The Comprehensive Report Presented by HighTech Business Decisions 3150 Almaden Expressway, Suite 222, San Jose, CA Tel: (408) Fax: (408) July 2012
2 FORWARD AND ACKNOWLEDGMENTS HighTech Business Decisions conducted the market research and wrote the report, High Throughput Screening 2012: Improved Screening, Adapted Technologies and Enhance Assays, 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 in regards to targets, target types, assays, assay development, cell-based assays, HCS, detection modes, microplate formats, outsourcing, budgets, 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. In-depth data collected from both users and suppliers allow for an objective and thorough analysis. We thank the 67 respondents from pharmaceutical, biotechnology, academic, and institute HTS laboratories, and HTS 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, suggestions, and funding for the first few months of this five-month project. report: The following analysts and staff made important contributions to this research and Analysts Jennifer Hartigan, Ph.D. Helen Nicely, Ph.D. Lynne Sopchak, Ph.D. Staff William Downey, MBA Dawn Miles, MBA Respondent interviews and analysis Respondent interviews Respondent interviews Project management, analysis, and report Project management, analysis, and production We hope that our clients obtain significant value from this report to help ensure the success of their future business. William P. Downey, MBA President
3 July 2012 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 information submitted by individual companies. The company interview write-ups and information contained in this report are not intended to be a complete description of any one company, but a paraphrased synopsis of interviews conducted with these companies in October, November and December of 2009, 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. Copies of this report may be ordered from HighTech Business Decisions. To place an order, please call HighTech Business Decisions at (408)
4 TABLE OF CONTENTS Chapter 1: EXECUTIVE SUMMARY 1.1 Introduction Overall Market Evaluation HTS Market Overview Market Drivers The HTS Market Size HTS Market Growth Summary of Users Activities Current Environment s Effect on Drug Screening Drug Discovery Activities Performed by HTS Labs Targets Use of Assays and Assay Detection Importance of Phenotypic Screens Microplates Current and Planned Use of HCS Technologies Trends That Will Shape HTS Summary of Suppliers Capabilities Suppliers Observations on Changes Assay Development Focus Suppliers Observations on Major Technology Trends 1-31 Chapter 2: METHODOLOGY, DEFINITIONS, AND ACRONYMS 2.1 Research Objectives Research Methodology Definitions Acronyms 2-4 Chapter 3: HIGH THROUGHPUT SCREENING: MARKET OVERVIEW 3.1 Characteristics of the HTS Market The Success of HTS HTS Products and Services Market Drivers Suppliers and Acquisitions 3-6
5 TABLE OF CONTENTS (continued) Chapter 3: 3.2 Determination of Market Size Investment in Drug Discovery Estimate of the Number of HTS Laboratories Worldwide HTS Market Estimate Based on HTS Lab Spending HTS Market Estimate Based on Suppliers Revenues Estimate of Market Size for HTS Products & Services Size of the Market by Region Market Growth HTS Market Growth Estimates Opportunities in the HTS Marketplace Customer Requirements Areas of Opportunity for Suppliers 3-26 Chapter 4: ANALYSIS OF HTS LABORATORY OPERATIONS 4.1 Respondent Companies Locations Number of Employees in HTS Laboratories Number of Years as an HTS Laboratory Titles of Survey Respondents Organization and Strategy Number of Respondents HTS Laboratories HTS Discovery Activities Integration of Screening within Drug Discovery Current Environment s Effect on Drug Screening 4-21 Activities Biologics Screening HTS Targets Number of Targets Screened Target Types 4-36
6 TABLE OF CONTENTS (continued) Chapter 4: 4.4 Throughput and Compounds Current and Future Throughput for Primary Screening Current/Future Throughput for Secondary Screening Current and Future Throughput for HCS Number of Compounds Tested in Primary Screens Number of Compounds Tested in Secondary Screens Number of Compounds Tested in HCS Types of Libraries Used for Primary Screening Size of Compound Libraries Minimum Deck Size for Primary Screening Change in Small Molecule HTS Programs Changes in the Importance of Compound Profiling Use of Compound Profiling Assays for Drug Discovery Current/Future Use of Assay Types in Primary Screening Use of Assay Types in Target Validation, Secondary 4-94 Screening and ADME-Tox Current and Future Use of Assay Instruments Importance of Phenotypic Screens ADME-Tox Screens Use of ELISA in Secondary Screening Need for Higher Throughput ELISA Technology Cell Lines Used for Cell-Based Assays for Primary Screening Cell Lines Used for Cell-Based Assays for Secondary Screening Cell Lines Used for Cell-Based Assays for HCS High Content Screening HCS Application in Drug Discovery Assays Requiring More Content Steps Taken to Overcome Barriers to Adopting HCS Top Requirements for Purchasing HCS System Microplates and Other Formats Formats Used for Primary Screening Formats Used for Secondary Screening Formats Used for HCS Screening Microplate Suppliers 4-163
7 TABLE OF CONTENTS (continued) Chapter 4: 4.8 Detection Technologies Detection Technologies for Primary Screening Detection Method Used for Assays Screened Preferred Detection Technology Investment in Automated Patch Clamp System Ion Channel Screening Needs Outsourcing and Collaborations Outsourcing HTS Activities HTS Services Provided Decision Point to Outsource HTS Activities Consideration of Purchasing Services from an Instrument Vendor 4.10 Budgets Budget for Cell-Based Assays, HCS, and ADME-Tox Average Expenditures and Budgets at HTS Laboratories Expected Changes in Category Spending Top Equipment Suppliers Evaluation of Competing Systems Reagent Bottlenecks Industry Forums Useful Journals/Publications Conferences Attended Success of HTS in Drug Discovery Leads Generated by HTS in 2010 and Change in Percentage of Targets Which Generate Leads IND Applications Filed Promising New Tools for HTS Improvement to Small Molecule Screening Technologies that Fulfilled their Promise Impact of Large Molecule Research Unmeet Needs in HTS Trends That Will Shape HTS 4-277
8 TABLE OF CONTENTS (continued) Chapter 5: ANALYSIS OF COMPANIES SUPPLYING HTS PRODUCTS AND SERVICES 5.1 Supplier Company Respondents Suppliers Participating in this Survey Major Acquisitions Type of Supplier Company Products and Services Expansion of Product Offerings Outside HTS Organizational Changes at Supplier Companies Changes at Supplier Companies by Activity Customers and Customer Requirements Suppliers Observations of Customer s Organizational 5-19 Changes Effect of Customer Organizational Changes Suppliers Observations of Customers Technical 5-27 Changes Assay Development Focus Top Reasons Customers Choose a Supplier Important Product Attributes Observations of HTS Product Trends Top Classes of Target Reagents Sold Rating of Customers Assay Approach to Drug Discovery Customers Use of Profiling Information Opinion of Label-Free Methods and Assays Impact of Large Molecule Therapeutics Research Effect of Standard Microplate Formats on Screening 5-55 Operations Microplate Sales Mix by Well Format Sales and Marketing New Customer Acquisition Most Effective Trade Shows HTS Supplier Competitive Challenges Purchasing Trends in Academic, Contractor and 5-69 Innovator Organizations Most Attractive Market and Product Segments Areas of Strong and Weak Pricing 5-75
9 TABLE OF CONTENTS (continued) Chapter 5: 5.5 Supplier Customer Base Number of HTS Customer Labs Served Estimate of Number of Worldwide HTS Labs Supplier Sales Revenue by Region Observed Changes in Regional Markets HTS Product and Service Sales by Industry Segment HTS Product and Services Revenue by Category Future Trends Suppliers Expectation of Market Growth Customers Outsourcing Drug Discovery Major Technology Trends in HTS Disruptive Technologies for HTS Appendix A: Coded Write-Ups of Interviews with 42 HTS Directors Appendix B: Descriptions of Suppliers New HTS Products and Services Appendix C: Interview Guide for Pharmaceutical and Biotechnology Companies, Non-Commercial Laboratory Respondents and Contract Research Organizations Appendix D: Interview Guide for HTS Supplier Company Respondents
10 Chapter 1 LIST OF TABLES Pharmaceutical Sales and R&D Spending Worldwide Drug Discovery Screening Expenditures in Changes in Screening Activities by Organization Type Assay Types as a Percentage of All HTS Assays Importance of Phenotypic Screens by Organization Type Reasons for Using Phenotypic Screens Technologies with the Largest Impact on HTS in the Future Number of Employees, Years in Business Changes Observed at Customer Sites Adoption of Novel and Non-Mainstream Technologies Major Technology Trends in HTS 1-32 Chapter Market Research Steps List of Acronyms 2-4 Chapter Selected Company Acquisitions in the HTS Market Pharmaceutical Sales and R&D Spending Worldwide Drug Discovery Screening Expenditures in Number of HTS Laboratories Represented by Respondents Estimate of the Total Number of HTS Laboratories Worldwide: by Site Estimate of the Total Number of HTS Laboratories Worldwide: by Size Market Estimate Determined by Average HTS Spending HTS Market Size Based on Average Spending in Estimated Market Size from Average Supplier Revenues in Size of the HTS Market by Region Worldwide Market Growth Forecast: The HTS Market in 2012 and Chapter Pharmaceutical/Biotechnology Co., Academic and CRO Respondents Number of HTS Employees in HTS Laboratories by Lab Size Number of HTS Employees in HTS Laboratories by Organization Type Number of HTS Laboratories at Participating Organizations Percentage of Respondents Performing Certain Drug Discovery Functions Other Laboratories Performing Drug Discovery Activities Changes in Screening Activities by Organization Type Summary of Comments about Screening Biologics 4-28
11 Chapter 4 LIST OF TABLES (continued) Number of Molecular Targets Screened Number of Molecular Targets Screened: By Organization Type Number of Molecular Targets Screened: By Lab Size Average Number of Targets Validated Target Types by Percentage Use Current and Expected Primary Screening Throughput Current and Expected Primary Screening Throughput by Organization Type Current and Expected Primary Screening Throughput by Lab Size Current and Expected Secondary Screening Throughput Current and Expected Secondary Screening Throughput by Org Type Current and Expected Secondary Screening Throughput by Lab Size Current and Expected HCS Primary Screening Throughput Current and Expected HCS Secondary Screening Throughput Compounds Tested Per Primary Screen by Organization Type Compounds Tested Per Primary Screen by Lab Size Compounds Tested Per Secondary Screen by Organization Type Compounds Tested Per Secondary Screen by Lab Size Compounds Tested Per HCS Primary Screen Compounds Tested Per HCS Secondary Screen Libraries Used for Primary Screening by Organization Type Size of Compound Library by Organization Type Size of Compound Library by Lab Size Minimum Deck Size for Primary Screening by Organization Type Minimum Deck Size for Primary Screening by Lab Size Changes in the Number of HTS Programs Reasons for Changes in HTS Programs Changes in the Importance of Profiling by Organization Type Use of Compound Profiling by Lab Size Use of Compound Profiling by Organization Type Assay Types as a Percentage of All HTS Assays Number of Respondents Using Each Assay Type in 2012 by Activity Instruments Used for Endpoint Assays Importance of Phenotypic Screens by Organization Type Reasons for Using Phenotypic Screening Likelihood of Performing ADME-Tox Assays ADME-Tox Assays ELISA Assays Used by Organization Type Issues with Higher Throughput ELISA Technology Barriers to Adopting Higher Throughput ELISA Technology % Laboratories Using Specific Cell Lines by Organization Type: Primary % Laboratories Using Specific Cell Lines by Lab Size: Primary % Laboratories Using Specific Cell Lines by Organization Type: Secondary % Laboratories Using Specific Cell Lines by Lab Size: Secondary % Laboratories Using Specific Cell Lines by Organization Type: HCS % Laboratories Using Specific Cell Lines by Lab Size: HCS 4-128
12 Chapter 4 LIST OF TABLES (continued) Assays and Other Tools Needed for Improved HCS Steps Taken to Overcome Barriers to Adopting HCS Additional Steps Needed to Overcome Barriers to Adopting HCS Requirements for Purchasing an HCS System Microplates/Other Formats Used: Primary Screening Microplates/Other Formats Used by Organization Type: Primary Screening Microplates/Other Formats Used by Lab Size: Primary Screening Microplates/Other Formats Used: Secondary Screens Microplates/Other Formats Used by Organization Type: Secondary Screens Microplates/Other Formats Used by Lab Size: Secondary Screens Microplates/Other Formats Used: HCS Microplates/Other Formats Used by Organization Type: HCS Microplates/Other Formats Used by Lab Size: HCS Suppliers of Microplates and Other Formats Named by Respondents Top Five Detection Technologies: All Groups 2001, 2003, 2004, 2006, , 2011, 2012, Average Percentage of Detection Technologies Used in Primary Screening Average Percentage of Detection Technologies by Organization Type Average Percentage of Detection Technologies by Lab Size Supplier/Instrument Used by Detection Technology Detection Used for Biochemical Assays Detection Used for Cell-Based Assays Detection Method Used in Biochemical Assays by Type of Assay Detection Method Used in Cell-Based Assays by Type of Assay Commercial Assays and Vendors Used for Biochemical Assays Commercial Assays and Vendors Used for Cell-Based Assays Preferred Detection Technology Reasons for Preference of Detection Technology Reasons Why Automated Patch Clamp Systems Will Not Be Purchased Unmet Needs of HTS Readers for Ion Channel Screening HTS Outsourcing by Organization Type Outsourced HTS Activities Outsourced HTS Contractors HTS Services Provided by Organization Type Consideration for Purchasing Services from an Instrument Vendor Average Budget Percentages by Category Average Budget Percentages by Category by Organization Type Average Budget Percentages by Category by Lab Size Average Total 2012 HTS Budgets by Organization Type Average Total 2012 HTS Budgets by Lab Size Average Total HTS Budgets by Organization Type Average Total HTS Budgets by Lab Size Average Budget Expenditures per HTS Lab by Product Category Median Expenditures by Service Category for Individual HTS Labs: Average Budget Expenditures by Product Category by Organization Type Average Budget Expenditures by Product Category by Lab Size 4-224
13 Chapter 4 LIST OF TABLES (continued) HTS Budget Spending Trends for the Next Three Years by Category Top Equipment Suppliers by Type of Equipment Criteria Used When Purchasing a System Reagent Bottlenecks Useful Journals or Publications Conferences Normally Attended Targets that Generated Leads in 2010 and 2011 by Organization Type Targets that Generated Leads in 2010 and 2011 by Lab Size Number of Leads Generated in 2010 and 2011 by Organization Type Number of Leads Generated in 2010 and 2011 by Lab Size Reasons for Change in Percentage of Targets That Generate Leads Improvements in HTS in the Last Two Years Benefits from Improvements in HTS Technologies that Met Early Expectations Changes Resulting from Large Molecule Research Areas of Unmet Needs in HTS Technologies with the Largest Impact on HTS in the Future Chapter HTS Product and Service Supplier Respondents Number of Employees and Years in Business Selected Company Acquisitions in the HTS Market Summary of HTS Products/Services Offered by Suppliers Respondents Benefits of New Product Offerings Areas of Expansion Within HTS Markets Served Outside Traditional High Throughput Screening Changes at Supplier Companies Expected in Next Two Years Changes at Supplier Company by Activity Changes Observed at Customer Sites Adoption of Novel and Non-Mainstream Technologies Decision Criteria: Supplier Decision Criteria: Product Reagents or Kits Sold by Respondents, Other than GPCR and Kinase Rating of Customers Drug Discovery Approaches Median Rating of Customers Drug Discovery Approaches Value of New Labeling Methods Benefits and Challenges of Label-Free Technology Comparisons of Large and Small Molecule Discovery Programs Percentage of Microplate Sales Mix by Size Activities to Gain New Customers Top Trade Shows for HTS Leads HTS Suppliers Competitive Challenges Purchasing Trends in Academic, Contractor and Innovator Organizations Most Attractive Market and Product Segments Areas of Strong and Weak Pricing by Segment 5-75
14 Chapter 5 LIST OF TABLES (continued) Regional Sales as a Percentage of Total HTS Revenues Observed Changes in Regional Markets Average Percentage Revenue from HTS Product and Service Categories Contractor Organizations Used for Outsourcing Drug Discovery Major Technology Trends in HTS Specific Disruptive Technologies for HTS 5-105
15 Chapter 1 LIST OF FIGURES 1.2-A 2011 Worldwide R&D Screening and Testing Expenditures B Worldwide HTS Market Size in 2012 by Product/Service Category C HTS Market Size and Growth Estimate by Segment A Current Effects on Screening Activates B Percentage of All Respondents Performing Drug Discovery Tasks C Average Number of Molecular Targets Screened by Organization Type D Average Number of Molecular Targets Screened by Lab Size E Top Assays Used by Organization Type by Percentage in F Assay Type Use by Organization Type: 2012 and G Microplate Formats: 2012 to 2014: Primary Screening H HCS in Drug Discovery I Use of HCS by Lab Size and Organization Type A Technical Changes at Customer Sites B Assay Development Focus 1-30 Chapter A 2011 Worldwide R&D Screening and Testing Expenditures B Worldwide HTS Market Size in 2012 by Product/Service Category A Average Expenditures per HTS Lab by Category, 2012 and B HTS Market Size and Growth Estimate by Segment 3-24 Chapter A Respondent Group Based on Throughput B Respondent Group Based on Organization Type C Number of Years HTS Operations Have Been in Place at Respondent Labs A Percentage of Respondents Performing Drug Discovery Tasks in HTS Lab B HTS Laboratory Organizations C Role of HTS Lab by Type of Organization D A Traditional HTS Laboratory Organization E Current Effects on Screening Activities F Operations Involved in Biologics A Average Number of Molecular Targets Screened by Organization Type B Average Number of Molecular Targets Screened by Lab Size C Average Number of Molecular Targets Compared to Primary Screens D Average Number of Primary Screens by Organization Type E Average Number of Primary Screens by Lab Size F Average Number of Targets Validated Per Lab by Organization Type G Average Number of Targets Validated Per Lab by Lab Size H Summary of Percentage Use of Popular Target Types I Use of Target Types for 2012 by Organization Type J Use of Target Types for 2012 by Lab Size A Current and Expected Average Primary Throughput by Organization Type B Current and Expected Average Primary Throughput by Lab Size C Current and Expected Average Secondary Throughput by Organization Type D Current and Expected Average Secondary Throughput by Lab Size 4-51
16 Chapter 4 LIST OF FIGURES (continued) 4.4-E Current and Expected Average HCS Primary Throughput by 4-53 Organization Type 4.4-F Current and Expected Average HCS Primary Throughput by Lab Size G Current and Expected Average HCS Secondary Throughput by 4-56 Organization Type 4.4-H Current and Expected Average HCS Secondary Throughput by Lab Size I Changes in Number of Compounds Tested per Primary Screen J Number of Compounds Tested per Primary Screen by Organization Type K Number of Compounds Tested per Primary Screen by Lab Size L Number of Compounds Tested per Secondary Screen by Organization Type M Number of Compounds Tested per Secondary Screen by Lab Size N Number of Compounds Tested per Secondary Screen by HTS Labs O Number of Compounds Tested per HCS Primary Screen by 4-65 Organization Type 4.4-P Number of Compounds Tested per HCS Primary Screen by Lab Size Q Number of Compounds Tested per HCS Primary Screen by HTS Labs R Number of Compounds Tested per HCS Secondary Screen by 4-68 Organization Type 4.4-S Number of Compounds Tested per HCS Secondary Screen by Lab Size T Number of Compounds Tested per HCS Secondary Screen by HTS Labs U Libraries Used for Primary Screening V Size of Compound Library W Minimum Deck Size for Primary Screening X Minimum Deck Size Percentage of Compound Library Y Changes in the Number of Small Molecule HTS Programs Z Changes in Compound Profiling AA Typical Percent of Library Screened A Changes in the Use of Cell-Based Assays B Top Assays Used by Organization Type by Percentage in C Assay Type Use by Organization Type: 2012 and D Importance of Phenotypic Screens E ADME-Tox Screens F Distribution of ADME-Tox Screens G ELISA in Secondary Screens H Sources for ELISA Kits and Reagents I Interest in Higher Throughput ELISA Technology J Most Common Cell Lines Used by Organization Type: Primary Screening K Most Common Cell Lines Used by Lab Size: Primary Screening L Most Common Cell Lines Used by Organization Type: Secondary Screening M Most Common Cell Lines Used by Lab Size: Secondary Screening N Most Common Cell Lines Used by Organization Type: HCS O Most Common Cell Lines Used by Lab Size: HCS 4-129
17 Chapter 4 LIST OF FIGURES (continued) 4.6-A HCS in Drug Discovery B Change in Use of HCS Over Next 5 to 10 Years C Use of HCS by Lab Size and Organization Type D Need for More Content from HCS A Microplates Formats: 2012 to 2014: Primary Screening B Comparison of Formats Used by Organization Type: 2012 to 2014, Primary C Comparison of Formats Used by Lab Size: 2012 to 2014, Primary D Microplates Formats: 2012 to 2014: Secondary Screening E Comparison of Formats Used by Organization Type:2012 to 2014,Secondry F Comparison of Formats Used by Lab Size: 2012 to 2014, Secondary G Microplates Formats: 2012 to 2014: HCS H Comparison of Formats Used by Organization Type: 2012 to 2014, HCS I Comparison of Formats Used by Lab Size: 2012 to 2014, HCS A Detection Technology Most Often Used B Top Detection Technologies by Organization Type C Top Detection Technology by Lab Size D Fluorescence versus Luminescence Preference by Organization Type E Investment in Automated Patch Clamp System F Ion Channel Needs Met by Current HTS Readers A Outsourcing HTS Activities B HTS Outsourcing Services Provided C Decision Point for Outsourcing HTS Activities D Purchasing Services from an Instrument Vendor A Comparison of Average HTS Budget Percentages by Category:2012 to B Comparison of Average HTS Budget Percentages by Organization Type C Comparison of Average HTS Budget Percentages by Lab Size D Overall Budget Changes by Percentage of Respondents: 2012 to E Average Individual HTS Lab Budgets in Thousands of US$: 2012 to by Organization Type 4.10-F Average Individual HTS Lab Budgets in Thousands of US$: 2012 to by Lab Size 4.10-G HTS Budget Spending Trends for the Next Three Years H HTS Budget Spending Trends for the Next Three Years by Major Category I Process for Evaluating Competing Systems A Percentage of Targets That Generated Leads in 2010 and B Number of Leads Generated by HTS Laboratories in 2010 and C Change to Percentage of Targets That Generates Leads D Change to Percentage of Targets by Lab Size and Organization Type E Number of IND Applications Filed A Impact of Large Molecule Research on HTS Programs B Areas of Unmet Needs in HTS 4-270
18 Chapter 5 LIST OF FIGURES (continued) 5.1-A Supplier Company Provider Classification B Diversified Supplier Company Provider Classification C Shifting Focus of HTS Products to Other Markets A Relationship Affect of Customer Organizational Changes B Difficulties Caused by Customer Organizational Changes C Technical Changes at Customer Sites D Assay Development Focus A Customers Move Toward Smaller Screens B Opinions About New Labeling Technology C Opinion of Label-Free Methods and Assays D Impact of Large Molecule Research on Drug Discovery and HTS E Standard Microplate Formats F Microplate Sales Mix by Respondent Group A Number of HTS Customer Labs Served by Each Reporting Supplier B Respondents Estimation of the Number of HTS Laboratories C Change in Number of Laboratories Since D Change in Number of Laboratories Expected for E Basis for Worldwide Laboratory Estimation F Regional Sales as a Percentage of Total HTS Revenues G Product and Service Revenue as a Percentage of Segment Sales H Average Percentage Revenue: Top 6 Categories A Expectation of Annual Market Growth B Expectation of Company Growth C Customers Outsourcing Drug Discovery D Disruptive Technologies for HTS 5-104
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