New York, NY (PRWEB) January 29, 2014
Firms in the Pharmaceutical Contract Management Consulting industry provide advice to pharmaceutical firms that outsource manufacturing and product development. According to IBISWorld Industry Analyst Jeremy Edwards, “The outsourcing of manufacturing allows businesses to focus on their core business functions and removes the requirement of large upfront investment that is required for mass manufacturing.” Consultants assist businesses through the assessment of the client contracting process, ensuring compliance and tracking performance. This includes the development of technology to help in development and tracking.
The industry experienced an uptick in demand over the past five years as many pharmaceutical companies were forced to examine their current market position and strategy because of the expiration of major patents. Between 2008 and 2012, a number of major patents expired and pharmaceutical firms invested in consulting services while they pursued major acquisitions and new cost structure efficiencies. In addition, the introduction of the Patient Protection and Affordable Care Act in 2014 will cause a large number of Americans to have access to coverage that will include pharmaceutical drugs. As a result, pharmaceutical sales are expected to increase and company profit margins will rise, thus allow businesses to invest in advisory services to develop new strategic goals. As a result, the industry is projected to grow at an average annual rate of 4.9% to $10.0 billion over the five years to 2014. Growth is expected to be strongest in 2014, when the industry is forecast to grow 6.1%.
Over the next five years, industry growth is expected to remain strong, but slow relative to the previous period. “Pharmaceutical companies will continue to examine strategic goals and use management consultants to develop new objectives and provide advice on major mergers and acquisitions,” says Edwards. Furthermore, increased corporate profit will lead to higher research and development expenditure over the five-year period. As a result, pharmaceutical companies will have greater ability to invest in advisory services, such as those provided by management consultants. Overall, industry revenue is projected to grow over the five years to 2019.
The Pharmaceutical Contract Management Consulting industry is characterized by low market share concentration, meaning that the industry is highly fragmented. Many industry operators offer a wide variety of services outside of consulting. These operators also service many other industries. For example, Selectica, Inc. also services manufacturing and financial services industries.
For more information, visit IBISWorld’s Pharmaceutical Contract Management Consulting in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Pharmaceutical Contract Management Consulting industry assesses clients' contracting processes, ensures contract compliance and tracks contract performance. Most industry operators develop and implement software that develops and tracks contracts.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.