Key Players in Pharmaceutical Contract Manufacturing: Market Developments, Outsourcing Hotspots and Growth Strategies

The pharmaceutical contract manufacturing (PCM) industry continues to grow at a steady pace, driven by cost pressures, stringent regulatory requirements and patent expiries. The highly competitive nature of the industry has been driving consolidation and companies are increasingly offshoring to emerging markets to reduce costs. As a result, players in key outsourcing destinations have been improving their manufacturing infrastructure to increasing their global competitiveness. ‘Key Players in Pharmaceutical Contract Manufacturing' is a new report published that examines the competitive landscape of the global PCM industry.

The latest key issues and developments in the contract manufacturing market are identified and leading companies in this sector are profiled in detail. For each of the top 10 CMO companies, this report provides a detailed examination of financial performance by business segment, manufacturing and R&D capacity, growth strategies and key acquisitions/divestments. This report also examines the size and growth of the global CMO industry, with analysis of major market

This report aims to identify the hotspots and profile the leading players in the global pharmaceutical contract manufacturing market. It analyses company developments in the light of industry size, industry structure, service offerings, new technologies, major strategies and competitive situation, to discern trends of the industry as well its major players. It also analyses the current market scenario to identify the hotspots for contract manufacturing.

Key Findings

-The global PCM market was worth $26bn in 2007 and is expected to grow at a CAGR of 11.4% to reach $40bn by 2011.

-Catalent is the largest CMO in the world, with revenues of $1.8bn in 2007. The PCM market is highly fragmented, with the top ten players in the market holding less than 30% of total market share.

-Contract manufacturing in India and China is forecast to expand at a CAGR of 20% through to 2011. Big Pharma are increasingly outsourcing manufacturing to low cost destinations due to cost and margin pressures, and India and China offer skilled manpower and a robust manufacturing infrastructure.

-Piramal is the largest CMO in India, and its contract manufacturing revenues increased by 33.3% in dollar terms between 2007-2008. The primary contributor to this growth was it's PMS segment.

-Biopharmaceutical manufacturing is forecast to have increased by 15% in 2008, driven by sales growth of biologics. Lonza, a leading player in this field, registered revenue growth of 75.9% in 2007.

Use this report to...

-Compare the performances of the top 10 CMO companies across key business segments with this report's analysis of Catalent, Lonza, Boehringer Ingelheim (BI), DSM, Patheon, Evonik, Piramal, Jubilant, Aenova, Fareva.

- Identify the market dynamics of the global PCM industry over the 2003-07 period, discover which emerging markets are becoming the CMO destinations of the future and understand the major issues affecting key industry players.

- Assess the future prospects of the top 10 CMO companies with this report's analysis of each firm's manufacturing and R&D capability, growth strategies and M&A activity.

- Measure the progress of other leading CMO companies by evaluating the financial performances of Nipro, Siegfried, Haupt, Divi's Laboratories (Divi's), Cambrex, Recipharm, Archimica, Vetter, Famar and NextPharma.

Explore issues including...

-Increased offshore outsourcing. Although Europe remains the biggest market for pharmaceutical outsourcing, Asia Pacific will expand rapidly over the coming years due to significant advantages over Eastern Europe and emerging countries such as Brazil, Taiwan and Korea.

-Stringent regulatory requirements. CMOs must receive approval from international regulatory bodies such as the FDA in order to establish credibility. Such approvals are difficult to obtain and require compliance with a number of stringent norms.

-Growth of biopharma manufacturing. Biopharmaceutical contract manufacturing is the fastest growing segment of contract manufacturing, and players in this field are expanding capacities to meet the rising demand.

-Industry consolidation. The PCM industry is experiencing a significant amount of M&A activity due to the presence of a large number of small players. Indian companies in particular have engaged in aggressive M&A activity, with Jubilant's acquisition of DRAXIS and Hollister-Stier and Piramal's acquisition of Avecia Pharmaceuticals.

Discover...

- What are the key trends in the global PCM industry?

- Which countries are the hotspots for contract manufacturing?

- Who are the top 10 players in the industry?

- How are the top 10 players positioned?

- How will consolidation change the dynamics of the industry?

- What are the key strategies of the leading CMO companies?

- Which regions and segments offer the greatest growth opportunities?

- What is the future outlook for the industry? SHOW LESS READ MORE >

Executive summary 12
Market development 12
Catalent 12
Lonza 13
Boehringer Ingelheim (BI) 14
DSM 15
Evonik 15
Patheon 16
Piramal 17
Jubilant 17
Aenova 18
Fareva 19

Chapter 1 Introduction 22
What is this report about? 22
Methodology 22

Chapter 2 Market development 26
Summary 26
Overview 27
Market size and growth 27
Positioning and performance of leading players 27
Drivers of manufacturing outsourcing 29
Key trends in the market 30
Increasing offshore outsourcing by Big Pharma 30
Expansion of biopharmaceutical contract manufacturing 30
Industry consolidation 31
Contract manufacturing hotspots – India and China 32
India 32
Contract manufacturing in India 33
Key CMOs in India 33
China 35
Contract Manufacturing in China 36
Key CMOs in China 36
Comparison of India and China on key parameters 38
Availability of skilled labor 38
Cost 39
Manufacturing infrastructure 40
Global capabilities 41
Service portfolio 41
Concerns about offshoring 42

Chapter 3 Catalent 44
Summary 44
Company overview 45
Group structure 45
Oral Technologies 45
Sterile Technologies 45
Packaging Services 46
Recent financial performance 46
Performance by business segments 47
Oral Technologies 47
Sterile Technologies 48
Packaging Services 48
Performance by geographies 49
Manufacturing and R&D 50
Acquisitions and divestments 50
Growth strategies 51

Chapter 4 Lonza 54
Summary 54
Company overview 55
Group structure 55
Life Science Ingredients 55
Exclusive Synthesis & Biopharmaceuticals 55
Bioscience 56
Recent financial performance 56
Performance by business segments 58
Manufacturing and R&D 58
Acquisitions and divestments 59
Growth strategies 60
Capacity expansion 60
Strategic partnerships and acquisitions 60
High value products 61

Chapter 5 Boehringer Ingelheim (BI) 64
Summary 64
Company overview 65
Group structure 65
Biopharmaceuticals 65
Pharmaceuticals Production 66
Pharma Chemicals 66
Recent financial performance 66
Performance by business segments 67
Manufacturing and R&D 68
Acquisitions and divestments 69
Growth strategies 69
Capacity expansion 69
Strategic partnerships 69

Chapter 6 Royal DSM (DSM) 72
Summary 72
Company overview 73
Group structure 73
Recent financial performance 74
Manufacturing and R&D 76
Acquisitions and divestments 76
Growth strategies 77

Chapter 7 Evonik (Degussa) 80
Summary 80
Company overview 81
Group structure 81
Recent financial performance 82
Manufacturing and R&D 84
Acquisitions and divestments 84
Growth strategies 85
Restructuring of operations 85
Geographic restructuring 85
Capacity expansion 86
Geographic expansion 86

Chapter 8 Patheon 88
Summary 88
Company overview 89
Group structure 89
Commercial Manufacturing 89
Pharmaceutical Development Services (PDS) 89
Recent financial performance 90
Performance by business segments 91
Performance by geographies 92
Manufacturing and R&D 93
Acquisitions and divestments 93
Growth strategies 94
Focus on prescription drugs business 94
Improve profitability and capacity utilization 94
Diversify customer base 94

Chapter 9 Piramal Healthcare (Piramal) 96
Summary 96
Company overview 97
Group structure 97
PDS (Pharmaceutical Development Services) 97
PMS (Pharmaceutical Manufacturing Services) 98
MMBB (Manufacturing Molecules/ Building Blocks) 98
Others 98
Recent financial performance 98
Performance by business segments 100
Manufacturing and R&D 100
Acquisitions and divestments 101
Growth strategies 101

Chapter 10 Jubilant Organosys (Jubilant) 104
Summary 104
Company overview 105
Group structure 105
Recent financial performance 106
Performance by product segments 107
Performance by geographies 108
Manufacturing and R&D 110
Acquisitions and divestments 110
Growth strategies 111

Chapter 11 Aenova 114
Summary 114
Company overview 115
Group structure 115
Swiss Caps 115
Dragenopharm 115
Recent financial performance 116
Manufacturing and R&D 116
Acquisitions and divestments 117
Growth strategies 117

Chapter 12 Fareva 120
Summary 120
Company overview 121
Group structure 121
Recent financial performance 122
Manufacturing and R&D 123
Acquisitions and divestments 123
Growth strategies 124

Chapter 13 11 to 20 Companies 126
Nipro 126
Company overview 126
Recent financial performance 127
Siegfried 128
Company description 128
Recent financial performance 129
Haupt 130
Company description 130
Recent financial performance 131
Divi's Laboratories (Divi's) 132
Company description 132
Recent financial performance 133
Cambrex 134
Company description 134
Recent financial performance 134
Recipharm 135
Company description 135
Recent financial performance 136
Archimica 137
Company description 137
Vetter 138
Company description 138
Famar 139
Company description 139
NextPharma 141
Company description 141
Other contract manufacturers 142
Index 143

List of Figures
Figure 2.1: Global pharmaceutical contract manufacturing market size, 2007-2011 27
Figure 2.2: Positioning of leading players (2007)* 29
Figure 2.3: Labor cost in select countries 39
Figure 2.4: No. of FDA approved plants outside the US, 2007 41
Figure 3.5: Catalent's financial performance ($m), 2004-2008* 47
Figure 3.6: Catalent's revenue break-up by geography (%), 2008 49
Figure 4.7: Lonza's contract manufacturing financial performance ($m), 2005-2007* 57
Figure 5.8: BI Industrial Customers' financial performance ($m), 2005-2007* 67
Figure 6.9: DSM DPP's financial performance ($m), 2005-2007* 75
Figure 7.10: Evonik's Health & Nutrition financial performance ($m), 2006-2007* 83
Figure 8.11: Patheon's financial performance ($m), 2006-2008* 90
Figure 8.12: Patheon's Commercial Manufacturing revenue break-up by geography (%), 2008* 92
Figure 9.13: Piramal Pharma Solutions' financial performance ($m), 2006-2007* 99
Figure 10.14: Jubilant's CRAMS financial performance ($m), 2003-2007* 107
Figure 10.15: Jubilant's revenue break-up by geography (%), 2007* 109
Figure 12.16: Fareva Pharmaceuticals' financial performance ($m), 2006-2008* 122

List of Tables
Table 2.1: Leading pharmaceutical contract manufacturing companies, 2007 28
Table 2.2: Select manufacturing outsourcing initiatives planned by the Big Pharma 30
Table 2.3: Leading CMOs in India 34
Table 2.4: Select foreign acquisitions by Indian players 35
Table 2.5: Manufacturing cost comparison 40
Table 3.6: Catalent's snapshot 44
Table 3.7: Catalent's financial performance ($m), 2004-2008 47
Table 3.8: Catalent's business segments performance ($m), 2006-2008 48
Table 3.9: Catalent's performance by geography ($m), 2006–2008 49
Table 4.10: Lonza's snapshot 54
Table 4.11: Lonza's contract manufacturing financial performance ($m), 2005-2007 57
Table 4.12: Lonza's contract manufacturing business segments performance ($m), 2005-2007 58
Table 5.13: BI's snapshot 64
Table 5.14: BI Industrial Customers' financial performance ($m), 2005-2007 67
Table 5.15: BI Industrial Customers' business segments performance ($m), 2005-2007 68
Table 6.16: DSM's snapshot 72
Table 6.17: DSM DPP's financial performance ($m), 2005-2007 75
Table 7.18: Evonik's snapshot 80
Table 7.19: Evonik's Health & Nutrition financial performance ($m), 2006-2007 83
Table 8.20: Patheon's snapshot 88
Table 8.21: Patheon's financial performance ($m), 2006-2008 91
Table 8.22: Patheon's business segments performance ($m), 2008 91
Table 8.23: Patheon's Commercial Manufacturing performance by geography ($m), 2007–2008 93
Table 9.24: Piramal's snapshot 96
Table 9.25: Piramal Pharma Solutions' financial performance ($m), 2006-2007 99
Table 9.26: Piramal Pharma Solutions' business segments performance ($m), 2005-2007 100
Table 10.27: Jubilant's snapshot 104
Table 10.28: Jubilant's CRAMS financial performance ($m), 2003-2007 107
Table 10.29: Jubilant's CRAMS product segments performance ($m), 2006-2007 108
Table 10.30: Jubilant's performance by geography ($m), 2005–2007 109
Table 11.31: Aenova's snapshot 114
Table 12.32: Fareva's snapshot 120
Table 12.33: Fareva Pharmaceuticals' financial performance ($m), 2006-2008 123
Table 13.34: Nipro's snapshot 126
Table 13.35: Nipro's Pharmaceutical financial performance ($m), 2003-2007 * 127
Table 13.36: Siegfried's snapshot 128
Table 13.37: Siegfried's financial performance ($m), 2006-2007* 129
Table 13.38: Haupt's snapshot 130
Table 13.39: Divi's' snapshot 132
Table 13.40: Divi's financial performance ($m), 2003-2007 133
Table 13.41: Cambrex's snapshot 134
Table 13.42: Cambrex's financial performance ($m), 2005-2007* 135
Table 13.43: Recipharm's snapshot 135
Table 13.44: Recipharm's financial performance ($m), 2003-2008 136
Table 13.45: Archimica's snapshot 137

-Catalent
-Lonza
-Boehringer Ingelheim (BI)
-DSM
-Evonik
-Patheon
-Piramal
-Jubilant
-Aenova
-Fareva