publication date: Jul 3, 2012
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author/source: Frost & Sullivan
Label-free
Technology is Still Poorly Understood, but has Proven to have Great Potential
for its Small but Expanding End-user Base
The inherent advantages of label-free technology is a significant
factor in driving its adoption. The promise of reducing drug failure caused by
toxicity is another key factor likely to boost the uptake of label-free
technology.
New
analysis from Frost & Sullivan,
Western European Market for Label Free Detection (LFD) Systems, finds that
the market earned revenues of $60.9 million in 2010 and estimates this to reach
$160.9 million in 2017 at a compound annual growth rate (CAGR) of 14.9 per cent
from 2010-2017. The research covers key segments including biochemical assays
and cell-based assays.
"The
key advantage of label-free technologies is that it is true to its word: it is
"label-free" as it requires no labelling or reporter molecules,"
notes Frost & Sullivan Programme Manager Ranjith Gopinathan. "Labels are
known for their altering effect on molecules under study which, in turn, alters
its binding or physicochemical properties."
The
absence of labels also means lesser interference from compound autofluorescence
and colour quenching, therefore leading to fewer false positives and negatives.
It is also devoid of problems arising from secondary detection of auxiliary
reagents.
"By
virtue of its direct detection capabilities, label-free technologies could enable
the use of natural ligands and substrates that is currently not possible with
label-based detection assays," adds Gopinathan. "Avoidance of radioactive
labels is an attractive factor for label-free technologies as this means better
lab safety and cost savings from evasion of radioactive waste disposable
procedures."
Of the
many reasons for escalating clinical development costs, drug failure caused by
toxicity is a chronic and growing problem in drug development. The problem of
toxicity holds the promise of being successfully addressed with new,
discovery-stage tools of which label-free technology is a key part.
While these are
promising trends, consolidations in the pharmaceutical industry will negatively
impact the growth of the life science research market and, by extension, of
label-free detection systems.
"The
large number of consolidations in the pharmaceutical industry is a harsh
reality for all life science research tools providers," explains Gopinathan.
"Consolidation significantly shrinks the addressable end-user pool as research
facilities start to share instrumentation and resources. Sometimes after a
merger or acquisition, companies segregate certain specialised kinds of work to
certain research facilities, and so only those facilities will be equipped with
the required equipment."
A
diversification into service offerings will be key to sustaining market
expansion. Being still a black box technology, companies need to offer custom
assay development services that will help in the adoption of their technology.
"This,
in the long-term, can lead to the upsell of a service customer into a product
customer," concludes Gopinathan. "Also having more than one avenue of revenue
will ensure more constant revenue generation."
If you
are interested in more information on this study, please send an e-mail with
your contact details to Janique Morvan, Corporate Communications, at
janique.morvan@frost.com.
Western European Market for Label Free Detection (LFD) Systems is part of the
Drug Discovery Technologies Growth Partnership Services
programme, which also includes research in the following markets: European
Molecular Diagnostics Market, Strategic Analysis of the European Stem Cell
Research Tools Market and The Emerging European Molecular POC Testing Markets.
All research included in subscriptions provide detailed market opportunities
and industry trends that have been evaluated following extensive interviews
with market participants.