-- Frost & Sullivan finds several factors widening the fragmented contract manufacturing market and improving profitability
MOUNTAIN VIEW, California, Aug. 28, 2013 /PRNewswire/ -- Cost benefits and pharmaceutical companies' desire to focus on their core competencies has created an increasing need for outsourcing and spurred the global pharmaceutical contract manufacturing market. Expiring blockbuster drug patents will reduce manufacturing capacity utilization rates and boost outsourcing further.
New analysis from Frost & Sullivan (http://www.lifesciences.frost.com), Global Pharmaceutical Contract Manufacturing Market, finds the market earned revenue of $13.43 billion in 2012 and estimates this to reach $18.49 billion in 2017. This research explores solid dose, liquid and semi-solid dose, and injectable dose formulations.
For more information on this analysis, please email Jennifer Carson, Corporate Communications, at firstname.lastname@example.org, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.
Pharmaceutical and biotechnological emphasis on complex disease areas, trends in disease control, growth in emerging markets, and reformulation of existing products have widened the scope of the contract manufacturing market.
"Investments and capacity expansions in the injectable dose formulation segment are in the near future, as it is likely the most significant source of income for the global pharmaceutical contract manufacturing industry," said Frost & Sullivan Healthcare Research Analyst Aiswariya Chidambaram. "Cytotoxics manufacturing, in particular, offers immense growth potential, given the demand from the cancer research and therapy segments."
The global pharmaceutical contract manufacturing market remains highly fragmented with many contract manufacturing organizations (CMOs) relying on one client for more than 50 percent of their revenue. Coupled with huge tax incentives and lower inventories for low-volume products, this creates immense pricing pressures for CMOs.
Currently, the US and Europe are major markets for outsourcing finished dose formulations and sterile preparations, while Asian CMOs are preferred destinations for active pharmaceutical ingredients, intermediates and generics. However, given the immense cost benefits, Asian CMOs, like in India, China and Singapore, will likely emerge as favorable destinations, particularly for solid dose formulations.
To maintain a competitive edge amidst stiff competition, CMOs are striving to provide a greater value proposition for clients by engaging in early life-cycle stage projects and establishing long-term relationships. Promoting additional services such as formulation improvements, alternate dose forms, real-time order tracking, and logistics support will also be necessary to attract new customers.
"Consolidation in the form of acquisitions and strategic alliances to gain access to new, emerging markets and niche segments will be crucial for both small and large CMOs," concluded Chidambaram. "Large CMOs can broaden their geographic presence, while small CMOs can leverage the technical expertise and resources of large CMOs to enlarge their footprint."
Global Pharmaceutical Contract Manufacturing Market is part of the Life Sciences Growth Partnership Service program. Frost & Sullivan's related research services include: Global CRO Market: Quantitative Assessment, Generic Pharmaceuticals Market – A Global Analysis, US CRO Markets – Key therapeutic Areas, European CRO Markets – A Strategic Analysis. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Global Pharmaceutical Contract Manufacturing Market
Corporate Communications – North America
SOURCE Frost & Sullivan