Change in US Stem Cell Policy Could Create Half Billion Dollar Market
By LabMedica International staff writers
Posted on 15 Apr 2009
The stem cell industry is expected to flourish in the United States now that federal funding restrictions on stem cell research are lifted, overturning limits on the use of embryonic stem cells imposed more than seven years ago. According to a new marketing report, there could be a US$500 million dollar world market for these types of therapies by 2013, now that the world's largest healthcare economy can participate in development.Posted on 15 Apr 2009
Analysts from life-science market research publisher Kalorama Information (New York, NY, USA) noted in its new report that under a best case scenario where therapies are successful, regulatory acceptance is expedient and insurers cover new therapies, the market could grow over 30 times its estimated size of $16.4 million in 2008. "Since there are just a few products in this area now, our analysts have used a bottom-up model to make forecasts, based on disease incidence and a gradual replacement of current therapies," said Bruce Carlson, publisher for Kalorama information. "In the past, analysts have utilized models like this to predict monoclonal antibody and cancer vaccine markets, before viable products appeared."
Kalorama estimates that 50% of stem cell therapeutics revenue will be in cardiovascular disease, with lung disease, diabetes, and cancer treatments making up the lion's share of the rest. The previous lack of funding for basic research, compared with the technologic challenges that must be overcome, has resulted in very limited approvals of new drug therapies that involve stem cells, in spite of strong potential. As of the end of 2007, there were no approved treatments or human trials using embryonic stem cells in the United States. Any existing therapies were typically in the form of stem cell transplants using either bone marrow or blood stem cells for oncologic conditions.
"This situation has allowed other countries to take the lead," noted Mr. Carlson. "The UK is responsible for many of the advances in stem cell technology, and both China and Singapore, with some of the most unrestrictive embryonic stem cell research policies in the world, have emerged in this area."
But things should change with the new federal policies and America's gain may be Europe and Asia's loss, since money from American companies has been funding many projects abroad, some of which will likely relocate. Still, despite a short drop in European and Asian projects, the United States is the world's largest healthcare market, which should alleviate any loss in global revenues.
Kalorama Information provides independent market research in the life sciences, as well as a full range of custom research services.
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