Biotech market: opportunities and challenges
Biotechnology is one of the key areas of high-tech development in numerous economy sectors. Its potential and range of applications have turned the industry, along with nanotechnology, into a leading factor in the development of the economies of individual states and the world community as a whole.
What is it?
Biotechnology studies the possibilities of using living organisms, their systems, or products of their vital activity to solve technological problems. The industry includes genetic, cellular, and environmental engineering. Common products such as beer, soap, and anything made of plastic refer to biotech. People have employed biotechnology since ancient times to breed animals and improve their crops.
Modern biotech enterprises research, develop, and produce a great range of commercial products, however, the majority of them specialize in either medical or agricultural solutions.
Biotech companies implement living organisms for manufacturing products or solving problems. Thanks to the identification and sourcing of DNA, the industry has been considerably growing and generating new innovations.
The use of biotechnology achievements are more efficient and resource-saving, reduce the country's dependence on fossil raw materials, reduce the greenhouse effect and stimulate the development of the economy as a whole.
History
Modern biotechnology emerged in 1983 with the invention of Genetically Modified Organisms (GMOs), although the term itself was coined in the early 20th century.
In 1983, German geneticists at the Institute of Plant Breeding brought out genetically modified tobacco, resistant to insect pests. Five years later, in 1988, genetically modified corn was planted for the first time in history.
Further, in 1997, Dolly the Sheep was introduced to the world. It was created from an udder cell and was a genetic copy of a sheep donor cell. Dolly lived 6.5 years and left behind 6 lambs.
In 2010, American scientists managed to synthesize a living cell. Scientists copied the genome of an existing bacterium, then deciphered it, sorted out all the components, and then with the help of a "synthesizing machine" chemically made a copy. The new bacterium has reproduced itself more than a billion times.
In 2013, the first bionic eye was developed in the US, which gave hope to the blind to regain their sight. The device works in the following way: photoreceptor cells convert light entering the eye into an impulse that enters the brain through the optic nerve. To do this, 60 electrodes were embedded in the retina of the bio-eye.
Statistics
Only in 2019, the global biotechnology market was valued at $440 billion with growth rate of 11%. The industry is fragmented into PCR, NanoBiotechnology, DNA Sequencing, Fermentation, Tissue Regeneration, Cell-Based Assay, and others. In a year, the market size was estimated at $750 billion and is projected to develop at a compound annual growth rate (CAGR) of 16% till 2028.
The key market driver is enabling government activities that foster growth in developing countries like India and China. State programs aim to modernize the drug regulatory pathway, standardize clinical studies, improve reimbursement policies, and speed up the product approval process.
Biotech branches
Industrial biotechnologies
The sector focuses on the use of plants, marine organisms, microorganisms, algae, and fungi for the production of chemicals, materials, and energy. This is the integrated use of biochemistry, microbiology, molecular biology, and applied sciences in technological processes using microorganisms and cell cultures. With the help of biotechnologies, certain human needs are met, for example, the development of medicines, modification, or creation of new species of plants and animals, which increases the quality of food products.
Agrobiotechnologies
Agricultural biotechnology focuses on the genetic modification of plants. The tasks lie in increasing yields, growth in difficult climatic conditions, pest control. The objects of agrobiotechnologies are viruses, bacteria, fungi, cells, and tissues of plants, animals, and humans, as well as extracellular substances and cell components.
Today, the main products of agrobiotechnologies are biological plant protection products, biofertilizers, breeding, genetic engineering in crop production, improvements of animal breeds, biological feed additives, products of deep processing of waste of plant and animal origin.
Biomedicine
Scientists in this field study at a fundamental level how bacteria, plant, and animal cells function. Sometimes the DNA of these cells is altered at the genetic level to obtain certain characteristics. For example, an increase in insulin production through gene manipulation.
There are over 250 drugs produced with the involvement of biotechnologies on the market, and 2020 became the second in the number of approved drugs by the American regulator (this includes not only biotechs).
Benefits
Improves food security
Low crops production results in high poverty and food insecurity in the world. Thereby, biotechnology can raise the crops yield by introducing high-yielding options which are resistant to biotic and abiotic stresses. What`s more, it can decrease pest–associated losses and contribute to the nutritional values of foods which is a crucial thing in rural areas or developing countries.
Mitigates climate change
As the biotech industry is predicated on renewable resources, it can save energy and substantially decrease the amount of CO2 emissions. Though this is an embryonic sector, it has already demonstrated its value in terms of climate change mitigation. It is very promising for reducing the use of fossil raw materials.
Meets farmers`needs
Biotech has developed GMO technology which provided agriculture with many benefits. Crops have been modified and become more tolerant to abiotic stresses like cold, drought, salt, and heat. It allowed farmers not to worry about the weather conditions and helped plants adjust to environmental stress.
Challenges
Research and development funding
Biotech companies have to spend up to $1 billion on research and development for medications. The process of developing a treatment, earning regulatory approval, and bringing a product to market takes on average 15 years. It means that startups frequently spend over a decade on a product before generating any profit.
Involvement of patients
Involving patients for clinical trials is a particularly big challenge for the biotech industry limited in resources. For instance, fewer than 5% of cancer patients take part in clinical trials, which makes it difficult to try new therapies or interventions. In addition, people are hardly aware of clinical trials and often worried about their safety.
Maintaining innovation
The biotech industry firmly depends on government initiatives. It means that most companies are limited in their innovations by the state legislation, regulations, and facilities available. Especially, when it comes to developing countries, there may be a shortage of necessary technologies and equipment which prevents many innovations from making them happen.
Conclusion
The development of the biotech industry will be increasingly driven by social factors as many new biotechnologies lead to public debates over what prevails in them — value or danger. Many future biotechnological products will be similar to existing ones, but created using new approaches. Partly due to this, they will be able to appear faster — at least, this is already relevant for new forms of genetic transformation.
The growing possibilities of genome transformation today allow developers to expand the number and types of modifications. We can see the genetic transformation of microbes (such as yeast, algae, and bacteria) in closed systems for the production of chemicals and biofuels.