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Gateway
to the biotech marketplace
Maine Science and Technology Foundation
July 24, 2002
WESTBROOK, Maine – Despite 20 years in business, locations
in Maine and Massachusetts, and a list of more than
800 clients and suppliers, The Biotech Source may be
one of the best-kept secrets in Maine's biotechnology
industry.
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What's
in a name?
To make its Internet location easier to use, The
Biotech Source has registered several domain names
that are memorable to varying client groups:
www.thebiotechsource.com
www.biotechsource.com
www.diagnostickitsdirect.com
www.diseasestateplasma.com
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One
reason, says Bill McDonald, founder and president of
The Biotech Source (TBS), is that he is "sworn to secrecy"
about his company's client and supplier list, other
than the National Institutes of Health, a federal agency.
In
the competitive biotech industry, many companies are
reluctant to release information on the products they
manufacture, use or sell and rarely discuss suppliers
with their competitors.
"This
is why we vow to protect buyers' and sellers' anonymity,"
said McDonald.
A
Vast Product Line
TBS
is licensed by the U.S. Food and Drug Administration
to repackage and relabel biological and immunological
products, including antibodies, antigens, human controls
and normal serum products, disease state plasma, infectious
disease markers and tumor marker panels.
The
company offers bulk products from producers, repackages
them with Biotech Source labels that include tracing
data for the contents, and sells them to companies for
use in diverse human, plant, veterinary, environmental,
food and pharmaceutical applications.
TBS
recently expanded into the drug discovery market by
offering specialized products and customized services
that respond to requests from buyers and manufacturers.
The company also plans to expand its Web site to offer
diagnostic kits direct from manufacturers.
By
rounding out its product list with insulated shipping
containers, refrigerants, and bottles, McDonald said
TBS is able to provide customers with one-stop biotech
shopping.
Switching
to E-Commerce
McDonald,
an animal science specialist, is an alumnus of the University
of Maine and the Harvard School of Public Health. He
founded The Biotech Source 21 years ago as Reagents
International and has funded the company with cash flow
ever since.
Despite
the company's long-term success using traditional selling
methods, this year brought significant changes to TBS's
business model. The company replaced its traditional
approach of catalogue sales with electronic sales via
the Internet.
McDonald
said TBS's new Web site is "the best tool for us" for
selling and has replaced paper catalogues, which tended
to be out-of-date before they appeared in customers'
mailboxes.
The
new interactive online catalogue lends itself to TBS's
mission of matching supply and demand for specialized
products. Manufacturers willing to reveal their identities
can place advertisements on the TBS site, describing
products they would like to sell.
Current
advertisers on TBS include Maine companies Virostat
and Artel. McDonald said The Biotech Source works with
a variety of Maine companies and looks forward to working
with the new Thomas M. Teague Biotechnology Center of
Maine.
Online
Requests & Classified Advertisements
Customers
looking for specific products not listed on the Web
site can ask TBS to post their requests and specifications
under "Products Wanted." Some customers, for example,
may require an unusually high titer material for diagnostic
kit manufacture. Titers are used to measure the amount
of concentration of a substance, such as a medication
or an antibody, in a solution or a patient's blood.
McDonald
said matching existing products with buyers often means
that customers requiring animal-produced antibodies
can purchase them without subjecting additional animals
to unnecessary stress in a situation where final product
quality or quantity may be uncertain.
"I
think we're providing a great service by offering the
market existing product, of a very defined commodity
at a lower price," said McDonald.
A
flexible approach to the reagent marketplace is key
to TBS's value, because TBS can help large companies
increase sales volumes or provide a more even playing
field for small companies with specialized technical
and manufacturing capabilities but little marketing
expertise. Companies can also sell products through
TBS to increase cash flow, but without affecting their
standard pricing structures.
Classified
advertising is another way TBS's Web site works as a
resource to the industry. TBS will soon add a classified
ad section to its site, enabling companies or individuals
to advertise equipment, services, products, job opportunities
or positions wanted. Advertisers may ask potential customers
or hirers to contact them directly or, if they prefer
convenience and anonymity, request contact through TBS.
McDonald
is working to advertise and promote his new database-driven
Web site and hopes it will help expand international
sales and advance strategic partnering with companies.
TBS has already developed relationships with a number
of universities and is working with some to become a
marketing partner for licensing technologies to private
companies.
Bill
McDonald divides his time between The Biotech Source's
Maine and Massachusetts offices. The company employs
five people in the two states, and McDonald said the
Massachusetts location enables TBS to be closer to the
large Boston biotech market. The company also contracts
for services from and businesses and universities as
well as other biotech companies.
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