CMO market on the up says new study
pharmafile | September 24, 2012 | News story | Manufacturing and Production |Â Â API, CMO, manufacturingÂ
The global contract manufacturing market is expected to reach a value of nearly $48 billion this year on the back of burgeoning demand for active pharmaceutical ingredients (APIs) to serve the world’s generic drug sector.
The market is also expected to post fairly healthy growth of at least 6% a year between now and 2016, with APIs accounting for the majority of revenues over the next 10 years, according to market research firm Visiongain.
“Difficult economic conditions caused revenue to drop for many leading CMOs in recent years”, said Richard Lang, the author of Visiongain’s recently-published report into the sector.
“Among the leading US and European market players, only a few achieved continuous revenue growth between 2009 and 2011 [but] many are now reporting an increased uptake of services,” he added.
Among the trends identified in the report is that specialised manufacturing technologies – such as the ability to make highly-potent APIs – is a key driver for market growth in established markets such as the US and Europe.
In developed markets increased outsourcing of finished dosage manufacturing will also stimulate growth, as will the pharma industry’s continued push into biologic medicines which is driving demand for injectable dosage form manufacturing services.
The US remained the largest market for CMOs in 2011, accounting for 40% of the world market with demand largely met by CMOs in the US and EU.
Meanwhile, the picture in emerging markets is slightly different, says Visiongain, with CMOs in India and China experiencing rising demand for API and generic drug manufacturing that is expected to continue over the next decade.
The CMO sector is also expected to experience more collaborations and consolidation as they bid for wide-ranging, strategic-level contracts from big pharma companies and try to enter emerging markets.
Meanwhile, a niche is developing in which CMOs with low capacity are specialising in manufacturing drugs for clinical trials.
“To remain competitive in the future, companies will need to react to trends in drug development,” said Lang.
Phil Taylor
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