|
|
 |
|
Viewing report
|
|
|
|
Global Pharmaceutical Contract Manufacturing Markets
Frost & Sullivan, Aug 2005
Cost Pressure and Need for Greater Productivity Fuel Market Growth
The global pharmaceutical industry is witnessing rapid advances in processes and technology, and automation is emerging an integral part of most manufacturing processes. With stricter regulatory norms and spiraling costs, pharmaceutical companies are opting to outsource their manufacturing process to contract manufacturing organizations (CMOs) in order to improve efficiency and productivity. In catering to this growing demand, CMOs are offering strategic value-added services such as process development, marketing support, process optimization, and life cycle management, thereby integrating themselves in the supply chain of the pharmaceutical companies.
This Frost & Sullivan research service examines the global pharmaceutical contract manufacturing markets. It discusses the prevailing market drivers and challenges and presents strategic recommendations to ensure success in these highly competitive markets. The study further examines key trends across global regions and sub-segments, such as injectables, as well as solid and liquid dosage forms, to help identify growth opportunities.
Entry of Biopharmaceuticals and Specialized Processes such as Lyophilization Drives Market Expansion
The pharmaceutical contract manufacturing market is moving beyond providing traditional services, and is focusing on tapping the large demand for specialized niche technologies. CMOs have been building state-of-the-art facilities that rival those of pharmaceutical companies and are constantly upgrading them to enable novel manufacturing processes. The anticipated influx of biopharmaceuticals, especially oncology products and sterile injectables, is likely to create huge opportunities for specialized manufacturing technologies that are not available with pharmaceutical and biopharmaceutical companies. Lyophilization is another process that is in huge demand in the biopharmaceuticals segment, as it requires a high degree of automation.
Pharmaceutical companies are increasingly adopting the concept of ‘virtual pharma’, wherein they retain the marketing rights while outsourcing all manufacturing activities and related processes. This allows companies to deliver goods to the market at a faster rate than an internal plant would allow. With CMOs offering development services, outsourcing offers pharmaceutical companies a better value proposition while ensuring growth, says the analyst of this research service. The emergence of ‘virtual pharma’ as a successful, risk-sharing business model in comparison to the present big pharma, ‘blockbuster’ model is likely to be a major driver for the pharmaceutical contract manufacturing markets.
Manufacture of Injectables offers Good Growth Potential
Several biopharmaceuticals are presently in the late developmental stage and their imminent approval could see a wave of new products enter the market. These bio pharmaceuticals include sterile injectables and oncology products, which are the largest product segments among biopharmaceuticals. With biopharmaceutical companies looking to narrow their focus to research and development, there is likely to be an increased demand for higher manufacturing capacity in sterile vials and syringes. Although the manufacture of injectables presently constitutes the smallest segment in the pharmaceutical contract manufacturing markets, the increased demand for sterile products, especially injectables, is expected to drive the this segment across the globe.
The underlying cost of building new manufacturing plants across regional boundaries as well as complying with differing regulatory environments and requirements are encouraging the outsourcing of manufacturing and related processes among pharmaceutical and biopharmaceutical companies. While North America is the market leader in terms of revenue share, followed by Europe, it is Asia that is expected to show strong growth due to the huge manufacturing capacity available in the region, says the analyst. Among the dosage forms, solid dosage forms are continuing to lead revenue contribution, whereas liquid dosage forms are expected to lose their market share to injectables that primarily include sterile products and biopharmaceuticals (primarily oncology).
|
|
|
|
