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 -
www.strategyr.com/Pharmaceutical_Contract_Manufacturing_Market_Report.asp
www.strategyr.com/Pharmaceutical_Contract_Manufacturing_Market_Report.asp
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.