$140 Billion Pharmaceutical Industry Poised to for 10% Sales Growth in 2002, dictating an increase in capital spending

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In 2001, the Pharmaceutical and Biotech industries capital expenditures approached $9 Billion, with MRO spending topping $4 Billion. The US Pharmaceutical and Biotech industries expect to continue investing heavily in capital and maintenance expenditures. As reported in the recently published Industrialinfo.com 2002 Pharmaceutical & Biotech Forecast, spending will continue to rise for manufacturing capacity expansions, as well as research and development laboratories.

The large and aging baby boomer population is virtually guaranteeing sales for effective therapies that offer quality longevity, while the constant need for new products in the pipeline spur capital intensive research and development projects. The emerging trend of centralized corporate research campuses can have a company investing up to $300 per square foot for these massive state of the art laboratory complexes.

Industry giants continued to partner with smaller biotech discovery firms and contract manufacturers in 2001 after seeing their profits spiral upwards as the result of such unions. 2002 promises increasing activity in major pharmaceutical and biotech mergers and acquisitions.