SOURCE: Kalorama Information

Kalorama Information

March 04, 2013 13:09 ET

Sequestration Cuts Will Impact DNA Sequencing Market: Kalorama Information

NEW YORK, NY--(Marketwire - Mar 4, 2013) - One of the victims the automatic federal sequestration budget cuts could be the 1.6 billion DNA sequencing market, according to Kalorama Information. The healthcare market research publisher says that the cuts include reductions in normally bi-partisan NIH funding. This will affect on the funding of research projects with applications for sales of next-generation sequencing systems and the consumables used in the process, according to the Kalorama's lead sequencing market analyst.

The sequester cuts, $85 billion in automatic budget cuts over the next seven months, will occur gradually as a result of an impasse between President Obama and Congress. The cuts affect both domestic and national defense programs. And National Institutes of Health Funding is one of the domestic programs affected. Kalorama estimates that sequestration, if not resolved, would likely result in a 5% - 10% drop in NIH spending on sequencing. In turn, this will affect the market. 

"NIH funding drives the sequencer market to an extent as grant recipients plan new purchases of next-gen systems based on funding," said Justin Saeks, author of the report. "Sequester cuts could ultimately equate to a decrease of under or around $50 million from the total market."

While the adjustment may be slight considering the size of the overall market, it comes at a time where the sequencing market was expecting growth, and cuts into that momentum. According to the report, DNA sequencing has seen very high growth in recent years as a result of labs deciding to start using next-generation sequencing for their research. At the same time, large segments of end-users are still continuing to use CE Sanger systems and may take a while to shift to the new technologies. The science of sequencing is constantly evolving, as more clinical applications are sought and competition with other technologies is resolved. Aside from that adjustment, the competitive situation in sequencing should remain similar despite the sequestration.

"Illumina has maintained its position with the largest market share, due to the large selection of systems, while the lower tier companies have been struggling but still surviving," Saeks said.

Kalorama's DNA Sequencing Market Research Bundle contains analyst Justin Saeks on DNA Sequencing completed late last year, along with an addendum updating the report for the past few months of market activity. Additionally, the report contains two surveys of labs using sequencing systems. http://www.kaloramainformation.com/DNA-Sequencing-Research-7404480/.

About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.

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