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?
Will firms focused on instrumentation survive the slowdown in demand through consolidation?