Computational biology, also commonly referred to as bioinformatics, makes use of algorithms to establish the relationship between biological systems with the help of biological data that is impossible to be understood without computation analysis and modeling. For instance, the DNA and RNA sequencing done by new devices is so fine that not even a 0.001% of this data can be seen by human eyes. The use of computational biology to create simulation models for the fields of pharmacokinetics and pharmacodynamics have significantly helped several drug research and development projects in the recent past. This has compelled many pharmaceutical companies across the globe to adopt computational biology solutions.
The benefit of computational biology in using highly complex biological data to discover and gain a clear understanding of medical phenomena, significantly eliminating the need for human candidates to test drugs in developmental stage will boost the demand for these solutions globally. Transparency Market Research (TMR) states that the market will exhibit a remarkable double digit CAGR over the next few years and rise to a valuation of US$2.9 bn by 2018.
In this blog post, TMR analysts answer certain questions to present a clear perspective of the market for readers concerned with the future growth prospects of the market.
Q. What is the key driving force for the market?
A. Development of new drugs is a highly expensive process. The vast expenses incurred in the entire process of introducing a drug to the market, involving steps such as research, clinical tests, and approval applications, each equally expensive as the actual manufacturing process, make failure of a drug development project a critical loss for struggling pharmaceutical companies. It is estimated that the cost of introducing a new drug to the market is over US$3 bn. Failure of a drug development project, the resultant loss of investment, and the eventual chances of bankruptcy are thus the key factors driving the global demand for computational biology solutions.
Q. What are the key challenges faced by the market?
A. As the biological data being analyzed/processed in computational biology solutions is collected from a number of sources, it lacks standardization. For effective usage of biological data across a number of data processing tools, it is also necessary that the tools are compatible with each other. Moreover, the storage of unstructured data is also a huge challenge for market players. The integrated analysis of highly complex genomic and biomedical research data leads to complex statistical challenges.
Also, as new genomes continue to be added to databases, the resulting misannotations also lead to several data processing challenges. Moreover, there is also a significant shortage of skilled scientists who are excel in both computers and biology. These factors are collectively hampering the global demand for computational biology tools and services.
Q. Is the state of investment promising in the global computation biology market?
A. Yes. The market is expected to exhibit a highly promising rate of growth in the next few years. As such, the focus of large and small investors on this field has significantly increased and private and public bodies are encouragingly investing in the field. Presently, a significant chunk of investments in the market are provided by government bodies. Significant funds are being invested by government bodies in healthcare and education domains to encourage the adoption and enhance capabilities in the field of computational biology. The improvement brought about by computational biology solutions in the process of drug development is the key aspect that forms the basis of these investments.