Tissue engineering: the end of the beginning.
This study was undertaken to assess the impact of current economic conditions and recent disappointing product launches on the field of tissue engineering. Data were collected on all firms known to be active in the field, analyzed, and compared with analogous data collected in 1995, 1998, and 2000. As of December 31, 2002, more than 2600 full-time equivalents (FTEs) in 15 countries and 89 firms were engaged in tissue-engineering research and development. Annual spending was US dollars 487 million, down about 20% since 2000-a reasonable performance in the face of a stagnant economy and difficult capital markets. Individual sectors proved far more volatile. Activity in skin, cartilage, and other structural applications declined by more than 50% with a loss of 800 FTEs. This downsizing was somewhat counterbalanced by a 42% increase in stem cell firms, which added more than 300 employees. Consistent with general disenchantment with technology sector equities, capital value of publicly traded tissue-engineering corporations has decreased by almost 90% from US dollars 2.5 billion at the end of 2000 to US dollars 300 million at the end of 2002. The United States' fraction of the total workforce declined from 80% in 2000 to 54% in 2002. By the close of 2002, twenty tissue-engineered products had entered Food and Drug Administration clinical trials. Four were approved but none of these are yet commercially successful. Six other applications were either abandoned or failed to achieve product approval. Ten products were still in clinical trials, some of which were investigator sponsored, and most of which were at the phase I/phase II stage. The field has yet to produce a profitable product despite an aggregate research and development investment exceeding US dollars 4.5 billion. Tissue engineering is clearly having difficulty transitioning from a development stage industry to one with a successful product portfolio. This is often the case for breakthrough medical technologies.
Cemter for Biomedical Engineering, Brown University, Providence, Rhode Island, USA. Lysaght@Brown.edu
Michael J
MJ
Lysaght
Anne L
AL
Hazlehurst
D002986:Clinical Trials as Topic; D019981:Health Care Sector / Q000639:trends*; D023822:Tissue Engineering / Q000191:economics*