Transcript PowerPoint presentation

2006 HPLC Market Analysis
Overall Market
180,000 operating systems worldwide
This figure is growing by ~6% every year
Total revenue in 2006 was $3225M*
To put this in perspective – single Quad MS – $136M up 10% from 2005.
* All figures are approximate and in USD
HPLC Product Segment
The $3225M can be broken down into:
– Service $510M
– Aftermarket $1504M
– New systems $1220M
(Aftermarket constitutes consumables, computers, post sale detectors, cabling and software upgrades)
New System Breakdown
The largest number of new LC systems ordered is in the conventional
HPLC – $764M – 920-LC target segment
Fast LC/UPLC – $113M
GPC – $52M
Amino Acid analysis – $35M
Semi-Prep – $180M
In short the target areas for the 920-LC and 940-LC are aimed at 85% of
the combined HPLC market
Geographical Distribution of LC Systems
180,000 LC systems worldwide
North America – 38%,
Europe – 31%
Japan – 14%
Asia and Latin America - 11%
ROW – 6%
Installed Base by Markets
Pharma – 45,000 systems
Government and Academia – 45,000 systems
Chemical/Agriculture and food – 25,000 systems
Independent test/CRO labs – 15,000 systems
Biotech – 15,000 systems
Preparative systems – 31,000
Average Cost of Systems
Average system price is steady at ~$45-50K
This includes, gradient pump, autosampler, absorbance detector, data
system and service charges
Basic systems ~$30K
UPLC systems ~$80-90K
Preparative systems - ~$40-50K
Market Growth
The HPLC market grew by 6% last year,
In 2006 the number of retired systems was estimated to be ~13,275
The number of new systems sold worldwide was 23,000
Indicates a large proportion of the business is available with existing
customers
Demand by Industry
Pharma market – 28% of sales, continuing to grow worldwide and rapidly
in Asia
Independent labs and contract research organisations constitute 10% of
market and continue to grow at 6%
Academia and government sectors – 25% of sales
Biotech – 10% and continues to grow rapidly
Demand by Function
Research and Development – 37% of market – driven by performance and
sensitivity
Quality control – pharma industry – 31% of market – driven by reliability and low
cost
Analytical services – 18% – environmental analyses
method development – 10% of market – driven by performance and productivity
gains
Teaching – 4% of market – driven by low costs, robustness
What Type of Systems?
94% of systems have an absorbance detector – almost half are PDA
5-7% have RI, ELSD, Fluorescence
95% of systems had an autosampler
40% were purchased with a data system
64% were purchased with service contract
Desired Areas of Improvement
Customer survey revealed the most common areas of improvement are:
– Analysis software – 44%
– Column switching – 31%
– System control – 25%
– Autosampler – 18%
– Cycle time – 14%
– Fraction collection – 14%
– Set up – 11%
– Calibration – 10%
Good News
Analysis Software – NEW Galaxie version and system driver
Column Switching – NEW pre-plumbed, software integrated, automated valves
System Control – NEW system interface – one page, one place system control
Autosampler – NEW autosampler with better precision, carry over and speed
Cycle time – NEW autosampler and control with preplumbing for fast, reliable cycles
Fraction collection – NEW collector and software driver –“real time” and reliable
Set-up – NEW arrives set up, single system driver pre-configured – fast installs
Calibration –IMS to aid all calibration parameters –Analytical –Galaxie is very strong
Conclusion of the 920-LC and 940-LC
We have systems that the market is asking for.
Targeted and appropriate for the larger sections of the market.
Present Varian as a supplier for all the software, services, consumables
and associated technologies to be a viable, premium level, vendor.