Buoyant growth forecast for contract manufacturing sector
pharmafile | July 2, 2010 | News story | Manufacturing and Production |Â Â contract manufacturing, manufacturingÂ
Pharmaceutical contract manufacturing is heading for a period of strong growth as drugmakers continue to outsource production to improve efficiency, according to market research firm RNCOS.
The global sector will expand by 12% a year between 2010 and 2012 from a level of $22.5 billion in 2009, according to RNCOS’ just-published report, which lists improved production capacity, quicker time to market and low scale-up costs as the key drivers towards outsourcing for the drug industry.
One key factor is that manufacturing of pharmaceuticals is becoming more complex, with greater use of automation as well as tighter regulatory requirements which are shifting the return on investment equation towards an outsourcing model and away from capital investment.
“Most of the developed countries in the American and European regions are looking for ways to reduce their drugs expenditures after the global economic slowdown,” says RNCOS.
Pharmaceutical companies are increasingly adopting the concept of ‘virtual pharma’, it says, wherein they retain the marketing rights while outsourcing all manufacturing activities and related processes. This allows companies to deliver goods at a faster rate than an internal plant would allow.
Countries such as India, Brazil, Ukraine, Mexico, China and Singapore are fast becoming established markets for contract manufacturing, according to the report, which says this is thanks to a lower cost of manufacturing and highly-developed infrastructure. Most of their output is destined for the US and European markets.
“The economic conditions of these countries are providing immense opportunities to pharmaceutical manufacturers to expand their businesses,” says the report, which is called Global Contract Manufacturing Market Analysis.
Meanwhile, a second tier of emerging destinations for contract manufacturing is also emerging.
“Countries like Vietnam, South Korea and Bangladesh are rapidly emerging among other contract manufacturing destinations,” it adds.
Phil Taylor
Related Content
CARBOGEN AMCIS manufacturing license advances services in China
Swiss pharma manufacturing company, CARBOGEN AMCIS, has announced that its facility in Shanghai, China, has …
Meribel Pharma Solutions launches to take pharma services to new heights
Meribel Pharma Solutions, a new mid-sized contract development and manufacturing organisation (CDMO), has officially launched …
Bend Bioscience adds commercial spray drying facility to Georgia site
Bend Bioscience has announced the addition of a commercial-scale spray dryer and a Gerteis dry …
