During this tumultuous time in our industry, the opportunity for life science suppliers to thrive—rather than survive—will be predicated on a detailed understanding of how labs will allocate 2009 funds. This report, scheduled for release in March is designed to provide guidance, backed by hard data, as to how scientists plan to cut corners, modify experiments and change purchasing behaviors in response to shrinking budgets.

1. EXECUTIVE SUMMARY
REPORT #09-001
Prospering in a Down Market:
March 2009
Overview
Print: $3,200 $2,700
Strategies for Life Science Suppliers
Electronic (.pdf): $5,200 $4,500
Enterprise: $7,940 $6,750
This pre-publication discount price is only available until March 15, 2009!
Overview
Report Highlights
With an estimated $21.5 billion in federal research and themselves, and what types of incentives, discounts and
development (R&D) funding signed into law on February packaging would entice a lab to purchase more. The study
17th, many suppliers are breathing a sigh of relief that the also includes feedback as to whether or not scientists will
life science market will be immune from the global economic turn to vendors for advice—on how to conserve reagents,
crisis. But it is unclear how quickly these funds will be how to preserve the shelf-life of instrumentation and how to
released, what programs will be funded, and how much of go “green,” thereby counting on suppliers to become more
this infusion will translate into purchases of instruments, involved in promoting efficient operations in the lab.
kits and reagents. In the meantime, pharmaceutical,
biotechnology, academic and government labs continue to With a fifteen-year tradition of informing life science
react to the deepening recession with budget freezes and supplier strategy, BioInformatics’ March release of this
staff reductions. In fact, 65% of the scientists surveyed report will make the first step of decision-making—finding
Methodology &
Demographics
report that their research has already been affected by the out how customers plan to spend their money—both timely
downturn in the economy. and accurate. In light of budget cuts and in the spirit of
collaboration with life science suppliers, Prospering in a
During this tumultuous time in our industry, the opportunity Down Market: Strategies for Life Science Suppliers will be
for life science suppliers to thrive—rather than survive—will available at a pre-release price of $2,700 (print copy only),
be predicated on a detailed understanding of how labs will $4,500 (electronic plus print copy), or $6,750 (enterprise)
allocate 2009 funds. This report, scheduled for release in until March 15, 2009. A comprehensive study packed with
March is designed to provide guidance, backed by hard data, responses from the people who have budget authority and/or
as to how scientists plan to cut corners, modify experiments make purchasing recommendations in the lab, this report is
and change purchasing behaviors in response to shrinking
Company Information
mandatory for the life science supplier who intends to come
budgets. With unparalleled access to the voice of the out ahead in 2009.
customer, BioInformatics, LLC analyzes in this report the
broad scope of how scientists plan to control lab costs, what
Contact us at 703.778.3080 x13 to review the
products will be affected and the degree of concern scientists
study questionnaire fielded to more than
have about the economic climate.
500 U.S. life scientists.
Providing a roadmap for the life science supplier, this
study compares and contrasts FY2008 (actual) and FY2009
How This Report Can Be Used
(projected) budgets, revealing anticipated trends and
changes. Expenditures for capital equipment (greater than • Prepare to answer the urgent questions from Boards
$25k), instrumentation ($25k or less) and consumables of Directors, analysts and investors.
are detailed, and sources of funding for research and
Order Form
drug discovery are listed for both years. Fourteen product • Pinpoint areas of growth, stability and decline by
categories are examined using multiple variables, including market segment, region and product category
current suppliers, price points that increase likelihood
of switching and projected expenditures through FY10. • Reposition marketing and sales resources across
Additionally, the respondents provide insight as to how their major product categories.
labs are adapting to this crisis—65% of those surveyed say
their organization has already implemented a hiring freeze • Tailor marketing programs to enhance customer
and 63% are delaying or canceling non-essential purchases loyalty and prevent switching to lower cost suppliers.
for their labs.
• Focus R&D and Product Development on areas of
Quick responders will win in this tight economy. Prospering growth.
in a Down Market: Strategies for Life Science Suppliers
2111 Wilson Blvd
is not only a compilation of how life science customers
Suite 250
are planning to allocate 2009 budgets; it also outlines in
Arlington, VA 22201
detail how scientists expect suppliers to respond. Scientists
BioInformatics www.gene2drug.com
share their opinions about how suppliers can differentiate market insights from gene to drug
703.778.3081 (fax)
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 1 of 7
©2009 BioInformatics, LLC

2. Report Highlights
Prospering in a Down Market: Strategies for Life Science Suppliers
REPORT #09-001
Overview
I. The Impact of the Economic Crisis on Laboratory Budgets IV. The Adoption of Cost-Saving Lab Practices
• Fiscal year starts/ends • Cost saving measures employed
• FY08 Lab budget • Planned Cost saving measures
• FY09 Lab budget Bulk ordering
• Percentage spent on Change direction of inquiry
Capital equipment (>$25,000) Conservation measures
Instrumentation (<$25,000) Decrease/stop long-term experiments
Report Highlights
Consumables Defer capital equipment purchases
Other Delay/cancel nonessential purchases
• Sources of funding FY08 and FY09 Downsize staff
Percent of funding by source Halt new initiatives
Anticipated change in FY09 Increase energy efficiency
Anticipated change in through 2011 Increase the use of core facilities
Lease instrumentation
II. Scientists’ Reactions to the Current Economic Climate Outsource work
Participate in “reagent rental” programs
• Impact economic recession on current research
Methodology &
Postpone or suspend projects
Demographics
• Level of concern
Postpone or suspend specific experiments
Perception of overall impact compared to other
Purchase through alternative channels
Specific budget cutbacks in the lab
Purchase/acquire used instrumentation
Specific budget cutbacks in the institution
Purchasing groups
• Overall impact on purchasing
Reduce/cease experiments with animals
• Changes in grant applications
Rent instrumentation for the duration of a project
Reuse products
III. Anticipated Changes in Laboratory Purchases in
14 Product Categories Share resources with other labs
Company Information
Standing orders
• Products in use/Primary Supplier
Switch to less expensive alternatives
Cell biology instruments—Flow cytometer-based
• Interest in used lab equipment
Cell biology instruments—Microscope-based
• Impact of cost saving measures on service contracts
Cell biology kits and reagents
• Attractiveness of special offers from suppliers
Cell culture media and reagents
• Interest in assistance/advice of suppliers
Computer hardware
• Credibility of supplier advice
Gene expression analysis products
• Interest in environmentally-friendly products
High throughput screening and analysis systems
Image analysis systems
Additional Analysis by
Instrumentation for genomic analysis
Years of experience
Instrumentation for protein analysis
Order Form
Lab size
Laboratory plasticware
Purchasing authority (consumables)
Nucleic acid purification and separation products
Purchasing authority (instrumentation)
Protein purification and separation products
Product category
RNAi products
Market segment
• Anticipated change in purchases by product category
U.S. geographic region
• Planned capital equipment purchases by product category
• Potential for customer switching
Appendix A. Verbatim responses to the questions:
• Despite this economic recession, is your lab planning on
adopting new technologies this year? Why or why not? If so,
which technology(ies) will your lab will be adopting?
• Do you think your research or the research in your field will
change due to policies implemented by the new presidential
administration? Why or why not?
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 2 of 7
©2009 BioInformatics, LLC

3. Methodology Report Objectives
Prospering in a Down Market: Strategies for Life Science
Prospering in a Down Market: Strategies for Life
Suppliers, BioInformatics, LLC’s first report of 2009
Science Suppliers is based on responses to a 43-question
Overview
provides detailed insight into each of the following
online survey conducted by BioInformatics, LLC. The
topics:
questionnaire was completed by 530 life scientists in the
• Understand current sources of funding for research
U.S. between January 30 and February 2, 2009. To be
and drug discovery and what effect the current
eligible to complete the questionnaire, all respondents
economic situation will have on each, including a
were required to demonstrate knowledge of the
FY2008/FY2009 comparison.
laboratory’s annual budget and be regular users of at least
one of the 14 specified product categories. The questions
• Measure life scientists’ near-term level of concern
were answered by highly-qualified members of The with the impact of the economic crisis on their lab's
Report Highlights
Science Advisory Board™. BioInformatics sponsors The operating budget.
Science Advisory Board™, an online community of more
• Correlate level of concern with planned purchases in
than 40,000 scientists engaged in basic biological research,
14 product categories.
clinical research and drug discovery and development.
These experts have agreed to make themselves available
• Identify strategies life scientists intend to employ to
to answer questions including emerging areas of research,
“stretch” budgets and suggest effective positioning
the tools and techniques used in their labs, and their and marketing programs for suppliers.
satisfaction with their current suppliers.
Methodology &
Demographics
A Highly-Qualified Survey Population
The 530 scientists were pre-screened to ensure a representative sampling of the U.S. life science market reflective of our
clients’ product offerings in 14 product segments.
Company Information
All Major U.S. Market Segments Represented Perspectives From Across the Life Science Spectrum
Government
Basic research 71%
8%
Drug discovery/development 32%
Preclinical research 18%
Translational research 17%
Academic
Industrial Clinical research 16%
53%
39%
Order Form
Molecular diagnostics 12%
Other 3%
0% 10% 20% 30% 40% 50% 60% 70% 80%
(continued)
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 3 of 7
©2009 BioInformatics, LLC

4. A Highly-Qualified Survey Population (continued)
A Breadth of Scientific Knowledge and Job Responsibilities
Overview
Molecular Biology 49%
Staff Scientist 29%
Biochemistry 41%
Principal Investigator 25%
Cell Biology 41%
Lab Director/Supervisor/
Biotechnology 26% 19%
Coordinator
Drug Discovery/R&D 23%
Post Doctoral Fellow 12%
Genetics 21%
Report Highlights
Immunology/Virology Professor/Teacher 11%
20%
Protein Chemistry 17%
Laboratory Technician 3%
Microbiology 16%
Other 3%
Oncology 15%
0% 10% 20% 30% 40% 50% 60% 0% 5% 10% 15% 20% 25% 30% 35%
Methodology &
The Voice of Experience…With Purchasing Authority
Demographics
Less than 5 years
0% 5 to 10 years
More than 25 years
15%
17%
21 to 25 years
Company Information
15%
11 to 15 years
29%
16 to 20 years
24%
Budget Authority—Instruments Budget Authority—Consumables
Order Form
End-user only
End-user only
3%
3%
Evaluate consumables
and make
recommendations
I have budget authority
37%
for and/or authorize Evaluate
these purchases instrumentation and
43% make recommendations
I have budget authority
54%
for and/or authorize
these purchases
60%
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 4 of 7
©2009 BioInformatics, LLC

5. Other Recent Publications*
Life Science Marketing
Overview
#08-047 The Brave New World of Scientific Publishing November 2008 154 Pages
#08-019 Enabling Discovery: The 2008 Life Science Industry AwardsTM June 2008 101 Pages
#08-008 Instrumentation Service Contracts: Opportunities for Differentiation July 2008 136 Pages
#08-007 Protein Research: Strategies for Marketing to Chemists and Biologists September 2008 123 Pages
#08-006 Understanding Switching Dynamics: Maximizing Customer Retention in the Life Science March 2008 173 Pages
#08-004 Life Science Product Catalogs: Techniques to Increase Sales March 2008 92 Pages
Report Highlights
#08-003 Conference & Exhibit Strategies in the Life Sciences: What’s Working Now February 2008 135 Pages
#08-002 Advertising to Life Scientists: Resolving the Print vs. Online Dilemma February 2008 105 Pages
#08-001 Marketing to Life Scientists: Capturing Customers’ Attention in Applied Markets January 2008 156 Pages
#07-080 Marketing to Life Scientists: Exploring China & India December 2007 167 Pages
#07-069 Brand Positioning in the North American Life Science Market October 2007 930 Pages
#07-056 Customer Satisfaction & Loyalty in the Life Sciences:
Boosting Profit Through Exceptional Service & Support August 2007 129 Pages
#07-011 eCommerce Strategies for the Life Science Market June 2007 180 Pages
Methodology &
Demographics
#07-015 Improving Sales Rep Performance: Life Scientists’ Perspectives April 2007 189 Pages
#07-001 eMarketing to Life Scientists: Amplifying Your Marketing Message February 2007 171 Pages
* See Web site www.gene2drug.com for a complete listing.
Why Purchase Our Reports?
Company Information
Our published reports have several unique qualities that create value unmatched by other firms:
members of our unique online panel—The Science Advisory
Sources of Independent, Unbiased Research
Board—which consists of more than 42,000 verified life
Unlike reports from other firms that are based on an analyst’s
science and biomedical professionals who have agreed to take
subjective summary of information from publicly available
part in our surveys, focus groups and other market research
sources, our reports are based on the results of detailed
activities. These respondents are carefully selected based
surveys of hundreds—even thousands—of scientific and
on their professional qualifications, market segments and
medical professionals who buy your products.
geographic regions—we can even select them based on the
Developed by a Team of Experts products they use and their preferred suppliers.
Our questionnaires are developed by a multi-disciplinary
Complimentary Consulting Provided
team of scientists, industry veterans and market research
Order Form
With your purchase, we offer one free hour of consultation
experts with years of experience. These professionals
with our talented team of scientific and business analysts
understand that survey questions need to be asked in a way
who created the report. During this consultation, we can
that ensures the answers will directly address the business
answer any questions you may have about the survey results
challenges you face. Once the survey data is collected,
and what we believe to be the significant trends affecting the
this same team creates a unique report that presents the
market.
reader with a thorough understanding of the topic and the
scientific and business implications of the results based on
Custom Analysis & Research Available
sophisticated statistical analytics.
If you’d like to delve deeper into the data from a study,
Carefully Selected Survey Participants we can always perform custom cross-tabulations or other
analysis on your behalf. We can even pose follow-up
When others promote results from their online surveys, they
questions to respondents who answered in a particular way
fail to mention the uncontrolled nature of their broadcast
or conduct a custom study to extend your knowledge.
email invitations. To provide you with the most valid and
accurate results possible, the respondents to our surveys are
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 5 of 7
©2009 BioInformatics, LLC

6. About BioInformatics, LLC Our strength lies in our ability to integrate our understanding of
science and medicine with cutting-edge market research techniques.
As one of the first firms to recognize how the World Wide Web has
Since our inception in 1994, BioInformatics has provided critical
transformed market research, BioInformatics formed The Science
market intelligence to leading companies serving the life science,
medical device and pharmaceutical industries. We support clients Advisory Board. Launched in 1997, this global community currently
Overview
across the entire market spectrum—from scientific research to consists of more than 42,000 life science researchers, physicians
diagnostics and therapeutics—providing high-level management with and biomedical professionals who convene regularly via the Web to
market insights from gene to drug. voice their opinions on a wide variety of issues relating to biomedical
research and clinical technologies. Clients tap into this panel of
Our multi-disciplinary team of scientific experts and business experts and receive answers to their critical marketing questions in
analysts creates value for our clients by combining extensive industry days, rather than weeks. In addition to providing real-time insights
knowledge and experience. We offer a variety of products and into the perceptions of the market, posing questions to The Science
services that enable executives to see themselves, their market and
Advisory Board offers substantial cost savings over gathering
their competitors through the eyes of the most important information
information via traditional market research techniques.
source of all—customers. We can precisely meet the needs of our
Report Highlights
clients through the most appropriate mix of research methodologies,
BioInformatics offers both published reports and custom research
including:
services. Published reports allow marketing professionals to share in
• Online Surveys
the results of broad-based market studies that provide access to high
• Online Focus Groups
quality research at an affordable price. Our custom research is tailored
• Mail Surveys
to the specific needs of the company’s executive management. For
• Telephone Interviews
more information about BioInformatics’ product and service offerings,
please visit our Web site at www.gene2drug.com, call 703.778.3080 or
email info@gene2drug.com.
Our Valued Clients
Methodology &
Demographics
Biotechnology/Life Science Eppendorf Plexagen Diagnostics Ortho-Clinical Diagnostics Phillip Johnson & Associates
454 Eurogentec Post Genome Institute Radiometer America PA Consulting
AbCam Expression Pathology Promega Tektronix Perry Ballard
Accelrys Fermentas Protein Forest Piper Jaffray
Pharmaceuticals
Affymetrix Fluidigm Proteome Systems Ruder Finn
Agencourt Bioscience GE Healthcare Qbiogene Abbott Laboratories Scherago International
Agilent Technologies Gen-Probe QIAGEN Amgen Select Equity Group
American Type Culture Gene Codes R & D Systems AstraZeneca Stephan & Brady
Collection Gene Logic Ribomed Biotechnologies Aventis The Strategy Works
Anachem Gene Therapy Systems Rosetta Biosoftware Baxter Healthcare UBS Warburg
Antibodies By Design Gentra Systems Sachem Bayer
Apple Computer Publishers & Associations
GenVault Corporation Sarstedt Boehringer Ingelheim
Company Information
Applied Biosystems Pharmaceuticals
Genzyme Sandia National Laboratories Academic Press
Applied Precision Cardinal Health
Guava Technologies SAS Institute American Academy of
Axxora Centocor Pediatrics
Helicos BioSciences Schott Nexterion
BD Biosciences Hoechst Marion Roussel AAAS/Science
Hewlett-Packard Sequenom
Beckman Coulter ICN Pharmaceuticals American Medical Association
High Throughput Genomics Serologicals
Biacore Janssen Pharmaceutica American Society for Cell
Hitachi Instruments Serotec
Biology
Bio-Rad Laboratories Merck
Hybrigenics Sigma-Aldrich
American Society for
Bioneer Novartis Pharmaceuticals
Hyseq Solexa
Microbiology
Biotage Novo Nordisk
IBM Life Sciences SomaLogic
American Society of Human
Pharmaceuticals
BioTrove Illumina Source Precision Medicine
Genetics
Pfizer
Blue Heron Biotechnology Immunotech Stratagene
BioTechniques/Eaton
Schering-Plough
Caliper Technologies InforMax Stressgen Biotechnologies
Publishing
Callida Genomics Integrated DNA Technologies Takara Mirus Bio
Blackwell Publishing
Professional Services
Cambrex Bio Science Invitrogen Tecan
Cold Spring Harbor
& Finance
Carl Zeiss JRH Biosciences The Jackson Laboratory
Laboratory Press
Adjuvant Partners
Cell Signaling Technology Kirkegaard & Perry Thermo Fisher Scientific
Order Form
Elsevier
Adventus Research
Celliance Laboratories Thomas Scientific
Federation of Amer. Societies
Agency.com
Charles River Laboratories Kodak Scientific Imaging Tocris Cookson
for Experimental Biology
Anvil Group
ChromaVision Medical Leica Microsystems Transgenomic
Harvard University Medical
Atlas Venture
Systems LI-COR UVP
School
Battelle Memorial Institute
Cipher Systems LION bioscience Varian
John Wiley & Sons
BioOnline
Clontech Laboratories Lonza VWR International
Mary Ann Liebert Publishers
Citadel Investment Group
Corning Luminex Vysis
Nature Publishing Group
Doran Media Services
DAKO MDS Sciex Waters
New England Journal of
Fidelity Management and
DNAStar Mettler-Toledo AutoChem Whatman
Medicine
Research
Dow Corning Millipore
Society for Neuroscience
Foley & Lardner
Dynal Biotech MiraiBio Medical Diagnostics
Springer-Verlag
Gerson Lehrman Group
eBIOINFORMATICS Molecular Devices Applied Imaging
Stanford University High Wire
HSBC Securities
Edge Biosystems MWG Biotech Ciba Corning Diagnostics
Press
Infotrieve
Eksigent Technologies New England Biolabs Dade Behring
Thomson ISI
Innovative Marketing Group
EM Separations Technology NuGEN Technologies Diagnostic Products
Wolters Kluwer
McKinsey & Co.
EMD Biosciences Ovid Technologies Diametrics Medical
Nathan Associates
Entelechon Pall Life Sciences Hewlett-Packard Medical
National Research Council of
Epigenomics Percival Scientific Products
Canada
Epitomics PerkinElmer Life Sciences LifeScan
Novintel
Epoch Biosciences Photometrics Mallinckrodt
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 6 of 7
©2009 BioInformatics, LLC

7. BioInformatics
REPORT #09-001 market insights from gene to drug
Prospering in a Down Market: Strategies for Life Science Suppliers
Overview
PRE-PUBLICATION DISCOUNT PRICES are only available until March 15, 2009!
Print Copy—$3,200 Now $2,700!
Electronic Copy (includes one print copy)—$5,200 Now $4,500!
Enterprise Copy (includes one print copy)—$7,940 Now $6,750!
Ordering Information Electronic Copy
To place an order, fill out this form and mail it to BioInformatics, LLC or fax This format allows an unlimited number of users within your company
it to 703.778.3081. Alternatively, you may submit your order by emailing to access the report regardless of geographic location. You may place the
Report Highlights
sales@gene2drug.com, calling 703.778.3080 or visiting electronic copy (PDF) on your secure, corporate intranet or share it with
www.gene2drug.com/order/200/. co-workers via email. In addition to providing greater accessibility, the
electronic copy allows you to easily navigate the document with the help
Payment must be made within 30 days and in U.S. dollars. of bookmarks, quickly search key words or phrases and print out any page.
BioInformatics’ Federal Tax ID #: 54-2001907. One print copy of the report is also provided at no additional cost.
Credit Card Data Set
You may charge your order to American Express, MasterCard, Visa, To accommodate your unique needs, the raw data is also available. With
Diner’s Card or Discover. Please include your credit card account number, the data, you can analyze respondents’ answer choices in any way needed,
expiration date and signature. including cross-tabulations, correlations, etc. The data set is offered in two
formats: SPSS® Base or Microsoft® Excel, and may only be purchased in
Wire Transfers conjunction with the company-wide electronic copy of the report.
Wire transfers should be sent to: SunTrust Bank, 2121 15th Street, Arlington,
VA 22201, SWIFT #SNTRUS3A, ABA #071000104, Account #702260169.
Methodology &
Demographics
I wish to order the following format of REPORT #09-001,
Prospering in a Down Market: Strategies for Life Science Suppliers
Discount Price
o Print Copy $2,700 $________
o Electronic Copy (.pdf, includes print copy) $4,500 $________
o Enterprise Copy (.pdf, includes print copy) $6,750 $________
Company Information
o Add Data Set Excel or SPSS (circle one) +$1,200 +$________
Additional print copies _____ x $300 each +$________
Promo Code ___________ –$________
Shipping & Handling
+$________
(Add $15 for U.S., $50 for Int’l)
$________
Total
o Check Enclosed (Payable to BioInformatics, LLC)
o Purchase Order # ________________________________________
Name
o Bill Me
Order Form
Title
o Am Ex o MasterCard o Visa o Diner’s Card o Discover
Organization
 /
Street Address Credit Card # Exp Date
(MM/YY)
City, State/Province, Postal Code Name on card _____________________________________________
Country
Order Authorized By:
Phone Fax
__________________________________________________________
Signature Date
Email
BioInformatics, LLC
2111 Wilson Blvd., Suite 250 Arlington, VA 22201
Web: www.gene2drug.com • Phone: 703.778.3080 x13 • Fax: 703.778.3081 • Email: m.follin@gene2drug.com
Prospering in a Down Market: Strategies for Life Science Suppliers Executive Summary Page 7 of 7
©2009 BioInformatics, LLC