Pharmaceutical Contract Manufacturing: A Global Strategic Business Report
San Jose, California (PRWEB) March 20, 2012
Follow us on LinkedIn – The global pharma industry has been witnessing drastic changes such as increasing competition in generic markets, declining research and development (R&D) productivity, shrinking average patent life, and escalating governmental pressure to reduce drug prices. Pharmaceutical Contract Manufacturing (PCM) is emerging as a strategic option to an increasing number of pharmaceutical companies, owing to their ability to avail flexibility, quicker time-to-market, and lower scale-up costs. Outsourcing helps companies in cutting down on additional capacity in production networks.
The global recession of 2008 and 2009 has had a significant impact on what is already a highly fragmented global pharmaceutical contract manufacturing industry. A drop in venture capital funding has compelled many pharmaceutical and biotechnology companies to cut down in spending, affecting the fortunes of contract manufacturers worldwide. Impact on the availability of funds in turn deterred the growth of several R&D programs across the biotechnology and pharmaceutical industry. As a result, several projects were kept on hold and new project starts were delayed, cascading the impact on the pharmaceutical industry to the outsourcing industry as well.
However, on the flip side, the economic troubles endured by the pharmaceutical companies are expected to bring a paradigm shift in their operations, inclining more towards outsourcing. Pharma majors from developed markets are expected to outsource huge amount of manufacturing in order to concentrate on the core tasks of research and development and marketing. Pharmaceutical companies face increasing pressure to expand their product pipeline, and seek enhanced revenues and profitability, along with growing cost pressures and rising penchant to externalizing fixed costs are expected to skew drug manufacturing towards outsourcing. Besides, players in the pharmaceutical industry are also pressed by rising penetration of generics, which makes outsourcing a more compelling alternative to provide them with cost savings. In such a scenario, the role of contract manufacturing as well as contract developing companies is expected to become much more significant in the resource and cost optimized pharmaceutical industry.
The US represents the largest regional market worldwide, as stated by the new market research report on Pharmaceutical Contract Manufacturing. Europe trails behind the US. However, future growth in the market is expected to stem from developing geographies, such as Asia-Pacific and Latin-America. Asia-Pacific market for pharmaceutical contract manufacturing is projected to register a compounded annual growth rate of 19.7% during the analysis period. Segment-wise, injectables represent the largest segment, and are also expected to register the fastest growth over the ensuing years, compared to the solid and liquid dosage forms.
Biopharmaceutical contract manufacturing is expected to witness substantial growth in the near future. Several factors drive growth in the market, which include continued shift in focus towards production outsourcing and continued lower internal capacities with some major biopharma players worldwide. Currently, capacity utilization is lower, especially when compared to utilization levels in 2006. This is largely accredited to factors such as slowdown in the biotech market that emerged from slowdown in investments due to economic downturn, enhanced expression yields, and rise in capacity investments in the past. Going forwards, the market for biopharmaceutical contract manufacturing is expected to rise owing to the increased demand for biotech products and the commercialization of pipeline products by the companies.
The global PCM industry is typified by high level of fragmentation. The leading five players in the industry accounts for only about 30% of the overall industry revenues. Major players profiled in the report include Althea Technologies, Catalent Pharma Solutions, Dishman Pharmaceuticals and Chemicals Ltd., HAUPT Pharma AG, Jubilant Life Sciences Limited, Kemwell Pvt., Ltd., NextPharma, Nipro Corp., Patheon Inc., Penn Pharmaceutical Services Ltd., Royal DSM N.V., among others.
The research report titled “Pharmaceutical Contract Manufacturing: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the pharmaceutical contract manufacturing markets, impact of the recession on the market, current market trends, key growth drivers, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for pharmaceutical contract manufacturing market for the years 2009 through 2017 for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific, and Rest of World. Key product segments analyzed include Injectables (Injections, Vials, and Intravenous Solutions), Solid Dosage Forms (Tablets and Capsules) and Liquid Dosage Forms (Syrups and Suspensions). Also, a six-year (2003-2008) historic analysis is provided for additional perspective.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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