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Automated Compound Storage & Retrieval (ACSR):
      An Important New Market Develops
by Jack Gardner

History of ACSR

     In 2001, only 28 new medical entities (NME’s) were approved by the FDA; the smallest number in 30 years.  Five years ago, high throughput screening (HTS) was heralded as the way to develop better drugs faster.  This hasn’t happened.  To date, HTS has not produced better drug development.  In 2001, about $10 billion was spent on HTS systems and consumables.  Experts recognize it’s time to improve the efficiency of HTS.  This means working smarter, paying more attention to what will create ultimate success.

      As the capability for screening more compounds increased, so did the generation of new compounds.  New approaches to combinational chemistry made it possible to generate thousands of compounds in same time that they used to make dozens.  Libraries in large pharma companies grew to millions of compounds.  Each compound had to be stored, preserved, tracked and retrieved.

      Previously, compounds for screening had been kept in vials or microplates, then stored on racks in a freezer until needed.  This manual system had its limitations, but worked OK as long as HTS volumes were kept to 1000 a day or so.  Things changed as HTS volume and libraries grew ten to one hundred-fold.  Traditional methods of preparing plates for screening took too long.  Several labs reported that over 50% of their time was spent pulling samples and preparing them for screening.

      These needs led to the science of compound management.  Tools from other areas were adapted to this application.  Freezers were fitted with robotic arms to move racks and plates.  Automated liquid handling (ALH) pipettors and dispensers were adapted to reformat plates.  Sample scheduling software was modified to keep track of compound location and status.  Various plate sealing and unsealing techniques were tried.

     By 1997, several companies began to focus on compound management.  For some, it was an extension of products they were already selling.  For others, it became their core business. These first approaches failed to meet changing requirements.  Customers needed to expand their units, deliver desired compounds faster, and select individual compounds.   Within three years, the first generation of specialized custom solutions gave way to a second generation of products that were specialized, yet standardized.  A distinct market was developing.   This is the market that is addressed in this report:  Automated Compound Storage and Retrieval (ACSR).

      Meanwhile, smaller pharmas and biotechs were looking for better ways to store and manage their compound libraries, which numbered in the hundreds of thousands rather than the millions.  Several new suppliers provided compact units that could be moved through a lab door, instead of requiring a special room.  These mid-sized units have won rapid acceptance, and promise to expand this market very rapidly.

Characteristics of ACSR Market

    The potential market for ACSR products includes all research organizations doing HTS for drug discovery in pharmas, biotechs, and academic institutes.  It is characterized by rapid growth, innovative products, changing demands, and new companies entering. 

      The market for ACSR includes products used for storage, retrieval, manipulation, liquid handling, and transport.  The market can be divided into six product categories: 
   .  Large Storage Units –
room-sized storage; 1MM+ compounds; priced $1 to $5 MM
   .  Mid-sized Storage
– portable storage; 100-500K compounds; priced $100 to $200K
   .  Management Instruments
– robotics, sealers, de-lidders, etc; priced $10 to $200K
   .  Management Software
– from add-ons to enterprise-wide versions; $10K to $3 MM
   .  Automated Liquid Handling –
from pipettors to workstations; $15 to $150K
   .  Consumables
– plates, vials, tips, lids, seals, etc; from under $1 to $50 each.

      There are over 100 suppliers of products for ACSR.  They range from established industry leaders like Beckman and B-D to promising growth companies like Biophile and TekCel.  Most supply one or two categories of products, only a few offer the full range.

      There are several important trends which will impact growth in these product areas:
  .  Storage Units –
rapid growth for mid-sized units; demand for modularity and expansion
  .  Software –
better information integration, process optimization, software compatibility
  .  Consumables –
shift from plates to mini-vials; miniaturization of stored samples
  .  Markets
– more sales to biotechs; explosion of tissue storage; opening Japanese market.

Market Size & Growth

    The size of the ACSR market in 2001 was $263 million worldwide.  With an annual growth rate projected at 15%, the market will reach $466 million in 2005.  Large storage units and consumables are the two largest product categories.  Mid-sized storage units are projected to grow the fastest:  33% per year.  Demand for all product categories will remain strong over the next five years.   

Additional Information

     The market intelligence report:  Automated Compound Storage & Retrieval:  World Markets, Trends & Opportunities (September 2002) is available from Kalorama at www.KaloramaInformation.com.  The author is Jack Gardner (gardsavas@aol.com), founder and principal of Gardner, Savage Associates.  GSA has provided market information services to the lab instrument, biotech, and diagnostics industries since 1978. 


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