2.4 Suppliers in the Biotechnology and Pharma Sector Structure, Employees, Fields of Activity and Turnover
Due to the complex process of developing and producing drugs and diagnostics, the biotechnology and pharma industry tends to divide the wide range of labor which is needed during the long route from bench to bedside. Therefore, the majority of the sector is dependent on efficient suppliers. This is true for the group of companies that already manufactures goods and has products on the market. It also applies to the research-based biotechnology or pharmaceutical businesses which also would not be able to operate without continuous support from suppliers.
A broadly diversified product portfolio
8.3% 4.2%
37.5%
Number of employees
4.2%
> 249 100 – 249 50 – 99 10 – 49 < 10 45.8%
Figure 8: Size structure of suppliers in the biotechnology and pharma sector in 2014
The field of activities within the suppliers sector is as diversified as the biotechnology and pharma sector itself. The product portfolio includes a huge variety of products, such as: – – – – – – – –
bio-based pesticides and biocides used for plant protection bulk chemicals, specialties and reagents used for basic research complete laboratory kits used for diagnostic testing consumables and disposables enzymes and ready-to-use solutions, used for cell culture laboratory equipment large devices technical enzymes and microbes used for biotechnologybased industrial processes
In total, there are 24 companies in Austria dedicated to one of these business activities. Together, they achieved a turnover of 604 million euros in 2014. This represents a 25% jump in comparison to 2012, when a total of 14 suppliers achieved a turnover of 481 million euros. This increase of firms is partly attributed to the fact that the survey in 2014 analyzed in more detail the commercial activity of the supplier field in the biotech and pharma sector. Thus, a total of eight companies which were already active in 2012, are for the first time represented in the survey.
Suppliers tend to specialize A significant part of the biotechnology and pharma job market is related to the supply companies. Taken together, these firms employed a total of 1,780 staff in 2014. There are lots of opportunities for companies to specialize, not least due to the large variety of products. This is why quite a number of small enterprises operate in Austria. The supplier landscape in Austria is characterized by small companies. The bulk consisting of 20 companies (83.3%) have no more than 50 employees, making it the most common business size for a supplier dedicated to serving the biotechnology and pharma sector. Larger suppliers are rare in Austria: there is only one company that employs 100 to 249 people, and two companies with more than 249 staff on their books.
2012
2014
Number of suppliers in the biotechnology and pharma sector
14
24
Number of employees of suppliers in the biotechnology and pharma sector
1,370
1,780
Turnover of the suppliers in the biotechnology and pharma sector
EUR 481 m
EUR 604 m
Table 9: Key figures of the suppliers in the biotechnology and pharma sector 2012, 2014
24
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