Bio-tech market in Poland
genXone SA operates in the biotechnology industry, which is one of the most dynamically developing sectors of the economy. The sectors of the economy that benefit from biotech solutions are characterized by much higher dynamics of development and are much more valuable in the economic and social sense. That’s why in 2020 the European Commission included biotechnology in the new industrial strategy as an area requiring support due to its significant impact on the future of the European market. Biotechnology is also a potential response to the modern world challenges: health protection of aging societies, developing a circular economy, diminishing natural resources and finally combating with climate change and the effects of nature degradation. In 2016, the United States, the world leader in biotechnology, generated USD 952 billion in the biotechnology sector, which is over 5% of GDP. For comparison, in 2012 the estimated share of biotechnology in the American GDP was about 2%.
In Polish biotech enterprises in 2019 there were 4572 people hired (compared to 4179 people in 2018), in wich in R&D departments worked 2773 people (compared to 2734 people in 2018). The biotech staff consisted of 10325 people in total, of which 7727 conducted research and scientific activities (compared to 8072 people in 2018)
Because biotechnology as a science covers a wide range of activities entities operating in the biotech sector have an extremely diverse business profile. In order to describe the scope of activities covered by the biotech field, colors assigned to specific branches are often used. However, it should be borne in mind that these branches are closely intertwined and entities specialized in a very narrow biotechnological niche are rare.
All the colors of biotechnology
To the above-mentioned branches one should also add – the infamous black biotechnology – related to e.g. bioterrorism or illegal genetic mutations. This branch has a negative impact on the image of the sector, so it is in the interest of all entities to react to the risk of new ventures in this area on an ongoing basis.
There are promising prospects for the entire Polish biotech market. High hopes are associated with the development of technology for the production of biofuels and biosubstances. In addition, hormones, antibodies and diagnostic tests are produced in Poland using modern genetic engineering techniques. On the other hand, biopharmacy is the fastest growing branch. As a part of it, the processes of production of human proteins and peptides based on E. coli bacteria and other cultured cells are improved.
The genXone company, operating in the field of nanopore sequencing, has no direct competition. The number of providers of NGS sequencing services, being an indirect competition of genXone, doesn’t exceed 20 (in January 2021).
The largest entities on the Polish biotechnology market are Celon Pharma, Ryvu Therapeutics, Selvita, Polski Bank Komórek Macierzystych, Scope Fluidics, Bioton, Biomed Lublin, Mabion, Oncoarendi Therapeutics, Synektik.
The biotech market in the pandemic era
The COVID-19 pandemic changed the world, also in terms of the perception of the importance of biotechnology. This trend was also significantly felt in Poland. GPW analysts indicate that biotechnology was the second largest industry in terms of turnover on NewConnect.
The pandemic revealed the shallowness of the diagnostic facilities in Poland. There has been a shortage of laboratory capacity, especially in the public sector. Another weakness of the Polish biotech market is the supply chain fragility.
On the other hand, the awareness of the existence and possibilities of molecular diagnostics and telemedicine has increased significantly – the possibility of using telepathics has still its drawbacks, but a system has been created and it can significantly modernize the health care sector in Poland. It was biotechnologists who provided solutions for the times: diagnostic molecular tests, drugs, vaccines. Telemedicine, which often uses modern diagnostic methods and digital health, has also gained in importance.
Among the observed global socio-economic trends that significantly increase the importance of biotechnology:
- growing importance of companies from the fin-tech and bio-tech sectors,
- infectious disease pandemics,
- aging societies,
- more and more often diagnosed cancer and cardiovascular diseases,
- unfavorable climatic changes,
- additionally in Poland – the specter of a collapse of the healthcare system.
Market opportunities and threats
|The process of economic recovery from the crisis and the growing importance of biotechnology in counteracting such phenomena in the future
|Cost intensity of innovative biotech solutions
|Human potential: access to qualified staff (in Poland, 37 universities educating in biotechnology)
|High risk of research and development – with large financial outlays, they may not bring the intended results
|Market base: more than 250 R&D institutions
|Lack of national strategy in the biotechnology development field and the emerging weaknesses: limited practical learning, waste of talent, discouragement of sector participants
|6 developed biotech clusters: Poznań, Warsaw, Kraków, Wrocław, Łódź, and the Tricity
|Incorrect or unsuitable to the market conditions support programs
|The development of the biotech sector is in line with the basic assumptions of the Strategy for Responsible Development
|Domination of the pharmacy in the biotech industry and investments mainly in this sector (according to Biotechnology Market Analysis biotech market will be dominated by the pharmaceutical sector in 60%).
|Optimistic forecasts for the global biotech market: according to the Biotechnology Market Analysis report, by 2025 the value of the global biotechnology market is to grow at a rate of 7.4% annually – to USD 727.1 billion
|Global market – molecular sequencing and diagnostics services can be provided both on the Polish and global market.
|Competitive labor costs and rapidly increasing labor productivity
|A wide range of subsidy programs (both national ones available by NCBiR, as well as co-financed from EU funds).
|Possibility of implementing the strategy of “technological leap” suggested by the Polish Economic Institute, which would have an impact on dynamic development focused on bioinformatics
|Microorganisms in the spotlight – recognizing the role of microorganisms, including industry, health and environmental protection.