LIMS Uptake on the Rise in Eastern Europe
Valued at $10.0 million in 2005, the laboratory information management systems (LIMS) market in eastern Europe is set to increase to $17.8 million by 2012 due to the growing uptake of these systems by the pharmaceuticals community. Laboratory automation has made considerable progress in recent years, driving pharma companies to take advantage of available laboratory resources and enhance productivity as well as efficiency by implementing LIMS.
However, with countries in eastern Europe only now opening up to new and advanced technologies in the pharmaceuticals industry, it is critical for LIMS vendors to offer solutions that can be easily implemented as well as have a quick turnaround time. They will also need to provide multilingual support systems that suit the demands of the respective countries in this region. In fact, product localisation is one of the most crucial factors required to increase penetration rates of this emerging technology.
Moreover, pharma companies that are considering LIMS for purchase are likely to assess their needs very carefully before making such a huge investment. With legacy systems already in place, many companies may not feel that there is a genuine need for replacement of these systems with modern, second-generation configurable solutions.
One of the main concerns that companies have in this respect is the migration of data from legacy systems to second-generation LIMS systems. Companies expect this facility to be available to enable a smooth transfer of data between the old and the new systems.
“This facility will instill confidence in pharmaceutical companies and prompt them to replace their legacy models in anticipation of more reliable data acquisition,” remarks Frost & Sullivan ( http://healthcare.frost.com ) Research Analyst Charanya Ramachandran. “It is crucial that the existing market participants maintain their technology advancements on par with local customers’ requirements and socio-cultural factors as well as keep pace with international standards.”
Nevertheless, foreign investors have been increasingly targeting countries such as Poland, the Czech Republic and Russia due to the substantial advantages they offer such as tax exemption for technology equipment transport and depreciation for hardware and software products. The business environment is also conducive for these investors to form partnerships with domestic vendors, which not only increases the potential for enhanced profitability but also helps them gain a clearer picture of the end-user base they are targeting.
These foreign companies inevitably have business operations at multiple sites, compelling them to follow certain mandatory regulatory measures such as ISO 17025 and good manufacturing practices. As companies strive to retain international competency and acquire veritable data, it is likely that they will continue adopting more compliance measures in their manufacturing sites. This will compel LIMS vendors to provide superior quality control software packages to meet the changing needs of the pharmaceuticals industry.
“Given the high entry costs to the pharmaceuticals industry and the stringent regulatory measures to comply with, LIMS vendors can emerge successful if they bring in a product differentiating factor that has the ability to integrate with the laboratory environment and harmonise with the business processes,” says Ms. Ramachandran. “Value addition to the product line and adhering to the regulatory norms are key challenges that LIMS vendors will have to address satisfactorily to win over the pharma user base.”
With eastern Europe providing a cost-friendly business environment, LIMS vendors can capitalise on this by streamlining operations and offering enhanced services in the form of better customer support systems in the respective countries.
“The assured helpline is bound to be an encouraging factor for developing pharmaceutical end users as they gain a favourable and rapid return on investment in terms of faster turn around time,” notes Ms. Ramachandran. “This, in turn, provides a symbiotic climate as brand recognition and reliability for the LIMS vendors increases through their enhanced professional services.”
In fact, due to the huge investments involved in LIMS implementation, vendors with strong brand recognition and a history of efficient installations are likely to have a competitive edge. Pharma companies are likely to favour vendors that not only render exceptional customer support but also offer easily configurable off-the-shelf solutions to meet their application needs.
If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants an overview of the latest analysis of the Opportunities for Laboratory Information Management Systems Markets (Eastern Europe) (B785-55), then send an e-mail to Radhika Menon Theodore, Corporate Communications, at rmtheodore@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you via e-mail.
Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
