A recent GenomeWeb article noted that the top 40 companies to watch in the Life Sciences and Analytical Instruments space saw share prices drop 34% in 2022. Alexander Group’s 2022 research and project work among this community shows that while it was a challenging year from a share price perspective, many companies did realize double-digit growth. In 2023, Life Sciences and Analytical Instruments industry growth is expected to be lower relative to the results in 2021 and 2022 as COVID-19 tailwind subsides. While stock prices may normalize as the market corrects, companies are still managing to grow. Alexander Group found the following common planning moves by bifurcating companies into two cohorts: high-growth and moderate-growth. High-growth companies are investing in headcount, a specialization layer and enablement to maintain their current growth trajectory. Moderate-growth companies are rationalizing non-core headcount and instead investing in inside sales and marketing to drive revenue more efficiently.
Companies in this cohort are continuing to produce double digit growth. These companies are riding a combination of funding waves by NIH, pharma/biopharma R&D expansion, growth in applied markets such as environment and material, and through acquisitions. They are making three moves to ensure growth in 2023:
One revenue leader who has been through multiple business cycles mentioned moving chess pieces on the board this year to ensure above market growth.
Commercial organization retrenching was limited to companies or divisions with the greatest exposure to macroeconomic slowdown. Such companies included those with low margin run-rate consumables, high exposure to clinical markets or volatile/unpredictable new modalities, etc. Companies in this cohort are planning the following three changes to stabilize business:
Are you planning to make key changes to your FY23 & FY24 plans to adjust to the new market reality? Contact an Alexander Group Life Sciences and Analytical Instruments practice leader to learn how Alexander Group can help.
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Life Sciences and Analytical Instruments Industry Trends Study Briefing
Article: Built-to-Last – How Life Sciences Companies Focus on Talent
Article: The Battle for Market Share
Life Sciences and Analytical Instruments Industry Trends Study Briefing