Outsourcing pharmaceutical production is not new, and the benefits to big pharma companies are well documented. However, rapid changes in the kinds of drugs, the delivery technologies they will require, the expertise to scale-up new biopharmaceuticals, and even changes in capacity demand are all on the horizon for the contract manufacturing marketplace. One thing is for certain, contract manufacturing organizations (CMOs) will need to adapt to the changing needs of the pharma industry in the new age of drug discovery.
This research study on the status and outlook for pharmaceutical outsourcing is looking into such pressing issues as:
Kalorama has conducted scores of interviews with executives and engineers at pharmaceutical companies and at CMOs to validate projections and to assess expectations and on both sides of this large and important marketplace.
Scope and Methodology
This report analyzes the state of the manufacturing segment of the pharmaceutical outsourcing business, reporting figures on the three key markets of North America, Europe, and Japan. The report profiles several companies involved in marketing their manufacturing services to the pharmaceutical companies, including Quintiles, Cammbrex, Genzyme, and others. The report generally reviews the nature and direction of where the pharmaceutical contract industry, specifically contract manufacturing, is headed and the challenges it faces. Discussions of contract research work, while not the focus of this report, are included in some areas because they represent a more mature model of outsourcing in the pharmaceutical industry as a whole and can be instructive.
Market forecasts are based on an examination of current market conditions and on investigations into the development of new products by key suppliers. This information also is weighted with projected timing and the probability of receiving FDA approval to market products. The information is the result of data gathered from company product literature and other corporate brochures and documents, as well as information found in the scientific and trade press. In addition, multiple interviews were conducted with key company executives and industry analysts. Research was conducted from June 2001 to November 2001.
Capacity Crunch Drives Pharmaceutical Manufacturing Outsourcing Growth
New York, January 7, 2002 /PR Newswire — Contract manufacturing in the pharmaceutical industry will experience double-digit growth for the foreseeable future, according to a new study released today from Kalorama Information and available at MarketResearch.com, and a coming scarcity in manufacturing capacity will be a major factor in the upsurge in global outsourcing activity.
According to the new study, The Pharmaceutical Contract Manufacturing Marketplace, the global pharmaceutical outsourcing market stands at approximately $8 billion. However, the tsunami of new chemical entities in the pipeline, especially the huge number of biopharmaceuticals in development, will help to push the size of the market well past the $10 billion mark in less than three years as traditional manufacturers realize that capacity and specialized expertise are in short supply.
“Biomanufacturing capacity is definitely on everyone’s mind,” notes Steven Heffner, Acquisitions Editor for Kalorama Information. “But our research doesn’t necessarily indicate the dire shortfalls in capacity that some analysts have been predicting. We believe there are too many variables in the late-stage development process to assume the worst.”
In addition to the overall growth in outsourcing dollar volume, the number of pharmaceutical contract manufacturing organizations worldwide also continues to grow, according to the study. And the spectrum of services offered and the geographic spread of contract organizations also continues to widen as virtual pharmaceutical companies with more manufacturing needs become more common. The report examines these and other market trends, especially the importance of long-term strategic partnerships as the outsourcing industry matures.
1. Executive Summary
2. Introduction and Overview
3. Drivers and Trends
4. The Marketplace
5. Company Profiles
List of exhibits
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