SIC 2836 Biological Products, Except Diagnostic Substances

Encyclopedia of American Industries | 2005 | Copyright

SIC 2836
BIOLOGICAL PRODUCTS, EXCEPT DIAGNOSTIC SUBSTANCES

This category covers establishments primarily engaged in the production of bacterial and virus vaccines, toxoids, and analogous products (such as allergenic extracts), serums, plasmas, and other blood derivatives for human or veterinary use, other than in vitro and in vivo diagnostic substances. Included in this industry are establishments primarily engaged in the production of micro-biological products for other uses. Establishments primarily engaged in manufacturing in vitro and in vivo diagnostic substances are classified in SIC 2835: In Vitro and In Vivo Diagnostic Substances.

NAICS Code(s)

325414 (Biological Product (except Diagnostic) Manufacturing)

Industry Snapshot

According to statistics compiled by the U.S. Census Bureau, establishments classified in this industry shipped products valued at $6.6 billion in 2000, compared to $5.6 billion in 1997. The largest class of products within the industry was blood and blood derivatives. By the late 1990s the international sales for blood and its derivatives were approximately $18.5 billion per year. Other major product classifications were vaccines, toxoids, and antigens; biological products for veterinary, industrial, and other uses; and antitoxins, antivenoms, immune globulins, therapeutic immune serums, and allergic extracts.

In the late 1990's the biotech industries reflected a strong focus on financial investment in research and development and numerous alliances between biotechnology companies and between government and the private sector. Often small biotechnology companies relied on pharmaceutical companies to supply approximately half of the capital necessary for company development, according to Ligand's. At the start of the twenty-first century, biotech companies were expected to reap the profits as new products entered the market.

Background and Development

Biological products were created with biotechnology, the scientific and engineering procedures involved in manipulating organisms or biological components at the cellular, subcellular, or molecular level. These manipulations were carried out to make or modify plants and animals or other biological substances with desired traits. Although examples of primitive biotech processes dated back to ancient times (such as the use of fermentation in brewing and leavening agents in baking), their use in medical and pharmaceutical applications was an innovation of the latter decades of the twentieth century. Some analysts compared the biotech industry's impact on global medical care with the computer industry's impact on communication.

Biotech researchers produced products in essentially three ways: by developing ways to...

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