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Strengthening of Mid-size Biopharmaceutical Companies Indicates Strong Potential for Biopharmaceutical Contract Manufacturing - Contract manufacturing of biopharmaceuticals has moved beyond being a function of
Strengthening of Mid-size Biopharmaceutical Companies Indicates Strong Potential for Biopharmaceutical Contract Manufacturing

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2008/03/17 - Contract manufacturing of biopharmaceuticals has moved beyond being a function of "available capacity" and "cost" to a strategic option offering flexibility, quicker time to market, and lower scale-up costs.

   
 
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The market will continue to witness double-digit growth as the current demand is largely driven by first-generation products – rh protein therapeutics and monoclonal antibodies (MAbs) targeted for cancer.

New analysis from Frost & Sullivan (pharmaceuticals.frost.com), Global Biopharmaceutical Contract Manufacturing Markets, finds that the markets earned revenues of $2.45 billion in 2007and estimates this to grow to $6.48 billion by 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Global Biopharmaceutical Contract Manufacturing Markets, then send an email to Melina Trevino, Corporate Communications, at melina.trevino[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

"A large number of first-generation biopharmaceutical products maturing and major biopharmaceutical companies are likely to move these out to contract manufacturing organizations (CMOs) and focus on next-generation drugs, which could offer higher revenues and margins," notes Frost & Sullivan Industry Analyst Barath Shankar Subramanian. "The strengthening of mid-size biopharmaceutical companies serves as the engine for a rapidly growing biopharmaceutical pipeline and is a strong signal for future potential that exists in outsourcing manufacturing."

The fact that CMOs are better equipped to handle manufacturing and improve process efficiency and productivity in comparison to small and emerging biopharmaceutical companies will ensure the sustainability of the business in the long term. Contract manufacturing of biopharmaceuticals enables smaller and mid-tier companies to retain greater control over their products rather than out-licensing or selling them to bigger biotechnology or pharmaceutical companies.

"Manufacturing of biopharmaceuticals is a capital-intensive, complex, and highly technical process in comparison to manufacturing of small molecules," says Subramanian. "Investment in captive manufacturing capacity for biopharmaceuticals is a tricky decision for most companies as product development timelines are lengthy and often risky with a high risk of failure."

"Risk-sharing" partnerships and "preferred vendor" models are vital to a sustainable CMO business. Formulation development, consulting services, logistics, packaging, and proprietary technology platforms are other services increasingly being offered by CMOs.

Global Biopharmaceutical Contract Manufacturing Markets is part of the Pharmaceuticals & Clinical Diagnostics Growth Partnership Service program, which also includes research in the following markets: Global Pharmaceutical Contract Manufacturing Markets, Global CRO Spending Trends, and U.S. Drug Discovery CRO Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting, and Career Best Practices empower clients to create a growth focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 30 offices on six continents.

Global Biopharmaceutical Contract Manufacturing Markets - N2B9

 
 
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Strengthening of Mid-size Biopharmaceutical Companies Indicates Strong Potential for Biopharmaceutical Contract Manufacturing

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