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Cost Pressures and Reduced Time to Market Drive Demand for Contract Manufacturing - New analysis from Frost & Sullivan, Global Pharmaceutical Contract Manufacturing Markets, reveals that revenues in this industry totaled $12.38 billion in 2004 and can reach $25.70 billion in 2011.
Cost Pressures and Reduced Time to Market Drive Demand for Contract Manufacturing

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2005/09/28 - New analysis from Frost & Sullivan, Global Pharmaceutical Contract Manufacturing Markets, reveals that revenues in this industry totaled $12.38 billion in 2004 and can reach $25.70 billion in 2011..

   
 
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The global pharmaceutical industry is seeing rapid advances in processes and technologies and mounting cost pressures are forcing companies to look at alternate means such as outsourcing to achieve greater efficiency and productivity. In this highly competitive industry, it is vital that companies ensure the quick commercialization of new drugs by accelerating the time to market for their products.

As a result, pharmaceutical companies are increasingly looking to retain their internal focus on research and development (R&D) and marketing while outsourcing their manufacturing processes, thus fueling a growing demand for the manufacturing capacities of contract manufacturing organizations (CMOs).

New analysis from Frost & Sullivan (healthcare.frost.com), Global Pharmaceutical Contract Manufacturing Markets, reveals that revenues in this industry totaled $12.38 billion in 2004 and can reach $25.70 billion in 2011.

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 Global Pharmaceutical Contract Manufacturing Markets, then send an e-mail to Melina Trevino, Corporate Communications, at melina.trevino[.]frost.com, with 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 by e-mail.

In catering to the changing needs of pharmaceutical and biopharmaceutical companies, CMOs are revamping their business model and providing more value-added services such as development, logistics, packaging, and marketing. By opting for such services, pharmaceutical companies are able to reduce the number of supply chain participants and make optimum use of their internal resources.

“CMOs have been building and acquiring state-of-the-art facilities that rival those of pharmaceutical companies and are constantly upgrading them to enable novel manufacturing processes,” explains Frost & Sullivan Research Analyst Barath Shankar S. “The anticipated influx of biopharmaceuticals is likely to create a huge demand for specialized manufacturing technologies that are not available with pharmaceutical and biopharmaceutical companies.”

However, the constant changes in regulatory requirements mean that contract manufacturers are at a high degree of risk when investing in manufacturing plants and technologies. Any radical shift in technology or regulatory norms could result in these companies having to realign their technologies and processes.

In addressing this concern, CMOs will need to develop risk-sharing strategic partnerships, instead of engaging in providing one-off contract services. This would result in a shift to the “virtual pharma” model with pharmaceutical and biopharmaceutical companies concentrating primarily on R&D and marketing, thus freeing up internal resources and turning more competitive.

The contract manufacturing market in Europe differs from the North American market with respect to its business model. The core client base of European contract manufacturers comprise of generic drug companies as compared to the branded pharmaceuticals in North America. With more than a dozen drugs having annual sales of more than $500 million expected to go off patent between 2004 and 2009, the demand for generic products in Europe is likely to receive a major boost.

While North America remains the leading regional market, a key competitive trend seen here is the focus on long-term strategic partnerships. Drug manufacturers no longer look upon contract manufacturing as a capacity constraint alternative but consider it a strategic and competitive need.

“Asian countries, especially India and China, are continuing to draw a significant share of outsourced work from developed nations and the region is expected to show strong growth owing to a large manufacturing capacity and competitive cost proposition,” says Barath Shankar. “While solid dosage forms continue to lead revenue contribution, liquid dosage forms are likely to lose significant market share to injectables that mainly include sterile products and biopharmaceuticals (primarily oncology).”

Global Pharmaceutical Contract Manufacturing Markets, a part of the pharmaceuticals and clinical diagnostics subscription service, provides an overview and outlook for the global pharmaceutical contract manufacturing markets. This study segments the markets into injectables, solid dosage, and liquid dosage forms and covers manufactures across North America, Europe, and Asia. This research includes detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Analyst interviews are available to the press.

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.

Global Pharmaceutical Contract Manufacturing Markets
A918

Contact:

Katja Feick
Corporate Communications – Europe
P: +44 (0) 20 7915 7856
F: +44 (0) 20 7730 3343
E: katja.feick[.]frost.com

Radhika Menon Theodore
Corporate Communications – Asia Pacific
P: +91 44 24314263 Ext: 312
E: rmtheodore[.]frost.com

Surbhi Dedhia
Corporate Communications – India
P: +91 22 2832 4705 Ext: 131
E: sdedhia[.]frost.com

Keywords in this release: pharmaceutical contract manufacturing, contract manufacturing organizations, CMOs, biopharmaceuticals, virtual pharma, injectables, research, information, market, trends, technology, service, forecast

 
 
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Cost Pressures and Reduced Time to Market Drive Demand for Contract Manufacturing

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