Advice on How to Survive the Taq Wars - 經濟

※ [本文轉錄自 Biology 看板]

作者: fizeau (.) 看板: Biology
標題: Advice on How to Survive the Taq Wars
時間: Sat Aug 16 18:05:45 2008

http://www.genengnews.com/articles/chitem.aspx?aid=1656&chid=0
Insights on Purchasing Preferences & Analysis of Price Sensitivity and
Elasticity of Demand

As the engine that fuels the polymerase chain reaction (PCR)—one of the most
important inventions in molecular biology—Taq DNA polymerase has transformed
how life science research is conducted. This powerful technique for DNA
amplification relies on the amazing processivity of the DNA polymerase enzyme
from the thermaphilic bacterium, Thermus aquaticus (Taq DNA polymerase).
Because its enzymes are thermostable, the bacterium thrives in blistering hot
environments. The thermostability of Taq DNA polymerase is the critical
feature that facilitated the development of PCR and ensured its commercial
success.

Since March 28, 2005, researchers in the U.S. no longer need a license to
practice the basic PCR amplification process, which was covered by U.S.
Patents 4,683,195, 4,683,202 and 4,965,188.

This much-anticipated opportunity has opened the door for an influx of
suppliers hoping to provide Taq DNA polymerase to scientists for this
specific application without the associated royalty burden. Once Taq DNA
polymerase has been incorporated into a scientists toolbox, it likely remains
there for many years, if not for their entire research career.

A report, “The Taq Wars: Competitive Intelligence on How to Survive,“
released in November 2005 by market research firm BioInformatics, LLC
(www.gene2drug.com), provides insights into whether access to less expensive
Taq DNA polymerase will change the purchasing preferences of the 600+
scientists who participated in the study. It also presents a detailed
analysis of price sensitivity and elasticity in regard to the demand for Taq
DNA polymerase in different market segments. The report profiles the top
suppliers of Taq DNA Polymerase and what product attributes contribute to
their brands success.

By understanding how their products are used, suppliers can better position
Taq DNA polymerase to meet their customers needs. For example, standard Taq
DNA polymerase (either recombinant or native) is used in the majority of all
PCR reactions performed by study participants.

However, industrial respondents who were surveyed use hot start Taq
polymerase or Taq polymerase plus a proofreading enzyme about 8% more
frequently than their colleagues. By offering multiple reagent formats such
as kits and master mixes suppliers can appeal to industrial scientists who
are more amenable to real-time PCR, willing to utilize both DNA and cDNA
templates, and inclined to use specialized (and more expensive) versions of
Taq DNA polymerase.


Leading Suppliers
In aggregate, respondents identified Invitrogen (www.invitrogen.com), Applied
Biosystems (www.appliedbiosystems.com), and Promega (www.promega.com) as the
leading suppliers of Taq DNA polymerase.

While all three market segments ranked Invitrogen as first, there were
variations in which suppliers came in second and third. Very high volume Taq
DNA polymerase users (more than 100 μL of enzyme per week) preferred Applied
Biosystems. This preference also correlated with a trend that as the amount
of enzyme used per week increased, Applied Biosystems rivaled Invitrogen as
respondents favorite brand.

Slightly more than half of the respondents, regardless of market segment,
would consider switching to a different primary supplier of Taq DNA
polymerase. (Conversely, approximately half of the respondents would not
consider switching.) For the 8% of study respondents who recently selected a
new supplier the majority were attracted to the lower unit pricing offered by
their new supplier.


Factors Influencing Selection
In a fragmented market due to low barriers to entry (i.e., expiration of
Hoffman-La Roches U.S. Taq DNA polymerase patents) and the lack of economies
of scale (i.e., obtaining native or recombinant enzyme is a relatively
straightforward process although process improvements can increase to some
degree yield and profitability), competition for remaining the top supplier
will likely be fierce.

Suppliers who specialize in value-added (e.g., specialty kits or enzymes with
enhanced properties) or product specialization (i.e., target enzymes to a
specific customer segment) will be in a better position to attract and retain
a loyal customer base.

The primary reason many respondents decide to purchase Taq DNA polymerase
from their current supplier is familiarity, i.e., they are already using the
product.

Academic scientists tend to be more influenced by unit pricing than
industrial or governmental scientists. In contrast, industrial and
governmental scientists are likely to be swayed by a combination of factors
including: favorable unit pricing, ease by which the product can be obtained
from the supplier, and the use of related products from the same supplier.

While a smaller percentage of the whole, institutional mandate plays a
distinct role in modifying the purchasing behavior of industrial respondents.
Suppliers who negotiate sole source contracts with pharmaceutical and
biotechnology companies will help sway industrial respondents choice of enzyme
—to a greater extent than such contracts would in an academic or
governmental lab.


Impact of Patent Expirations
To determine whether brand preferences would be affected by the expiration of
the U.S. patents governing the use of Taq DNA polymerase for the basic PCR
amplification process, study respondents were asked if they knew about the
change in patent status. The majority of respondents did not know.
Nonetheless, 14% more industrial than academic or governmental respondents
knew that researchers no longer need a license to practice the basic PCR
amplification process.

Once informed of the patents expirations, many respondents were somewhat
ambivalent as to whether they would purchase Taq DNA polymerase from another
supplier. On a 7-point scale, asking whether respondents were going to change
their brand of enzyme because a license is no longer required to use Taq DNA
polymerase for amplification applications, the mean response was 3.4. In
fact, the vast majority of respondents (92%) have not changed their brand of
Taq polymerase in the last six months, suggesting that suppliers have not
been able to immediately capitalize on this off-patent opportunity to expand
market share.


Measuring Customer Satisfaction
Because very high levels of satisfaction create an emotional bond with the
brand (i.e., rather than just a rational preference), it is important for
suppliers to identify customers with especially high levels of satisfaction.
These researchers are the most inclined to continue repurchasing a specific
brand.

In this study, approximately 10% more academic and 12% more governmental
respondents are very satisfied (7 on a 7-point scale) with their particular
brand of Taq DNA polymerase compared with industrial respondents. This
elevated level of satisfaction directly translates into more product
recommendations: 52% and 56% of academic and government respondents,
respectively, would gladly recommend their brand of Taq DNA polymerase to
colleagues as compared to only 42% of industrial respondents.

To better understand what factors contribute to satisfaction, a statistical
analysis was performed to assess the relationship between the importance of a
products attributes and the respondents overall satisfaction.

In general, all three market segments value their brand of Taq DNA
polymerases lot-to-lot consistency, unit concentration, and yield. Industrial
respondents also appreciate their suppliers protocol clarity while
governmental respondents are happy with their products buffer formulation.
The only critical area of lower satisfaction that bears noting is industrial
respondents disappointment with pack sizes.

To determine how responsive demand would be to a change in price, respondents
were asked if the price they paid for Taq DNA polymerase was at least 20%
lower, how would the number of reactions they perform change.

The majority of respondents indicated that they would not perform more
reactions. Those respondents that would increase the number of reactions they
performed would do so by 10-20%. This inelasticity, i.e., demand hardly
changing with a drop in price, is likely due to respondents slowness in
changing their buying habits rather than price insensitivity or lack of
competitors.

Scientists tend to be conservative when considering ramping up their
experiments unless a specific need, based upon a specific line of inquiry,
arises.

Understanding a customers price perceptions is an important marketing
priority. Purchasing decisions are based upon how customers distinguish
prices and what they consider to be the current actual price—not the
suppliers stated price.

Scientists may have a lower price threshold below which prices may signify
poorer quality, as well as an upper price threshold above which prices are
seen as exorbitant. These limits are often influenced by a respondents
reference price, i.e., the price they are currently paying per unit of Taq
DNA Polymerase.

For example 50% of respondents currently paying $0.05 to $0.20 think $0.02
per unit is too cheap, while 51% of respondents currently paying $0.41 to
$1.00 think $0.10 per unit is too cheap.


Conclusion
The decision to switch Taq DNA polymerase brands is therefore not based upon
price alone. A combination of factors influences a scientists decision to use
a specific supplier. These factors include familiarity with the product and
company, ease by which the product can be obtained from suppliers, and,
especially for industrial customers, institutional mandate.

While the market might appear to be almost glacial in its slowness to change,
half of the respondents indicated that they would consider switching
suppliers. As a result, top suppliers might be faced with a shrinking
customer base as scientists look toward other suppliers that can better meet
their needs.

Already in its maturation phase, the expiration of the Hoffman-La Roches U.S.
Taq DNA polymerase patents will open up new opportunities for suppliers who
decide to either achieve profits through high volume and low cost or go with
a niche strategy to achieve profits through low volume and high margin.

As high-volume users, industrial respondents are poised to increase their
level of Taq DNA polymerase consumption over the next 12 months. This
projected increase—combined with their interest in enhanced enzyme
formulations, specialized pack-size requirements, and decreased price
sensitivity (as compared to academic respondents)—suggests that a niche
strategy might be effective in this market segment.

Since only 17% of these respondents are very satisfied with their current
supplier, companies might have an easier time convincing industrial
scientists to consider their new product offerings. Suppliers hoping to
embrace this customized approach can also achieve another level of
differentiation by looking beyond the basic PCR applications and combining
Taq DNA polymerase with novel chemistries to offer unique kits for the next
generation of molecular technologies.


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