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Tool and Service Providers
Biotechnology tool and service companies will continue struggling with reduced demand from the academic segment of their customers and portions of the industry, if a check of third-quarter results is any indication. Details on how this could play out can be read here. Those that are performing well despite the downturn have a portfolio that spans instrumentation, consumables, and services. Last month, Frost & Sullivan issued a report concluding that the global contract research organization market resumed its growth trajectory last year and is expected to grow at a compound annual growth rate of 10.5% until 2017. For vendors dependent on installation of new systems as a primary source of revenue, things don’t look so rosy. Do you think consolidation will be the answer to such companies’ prayers?