2015 Results Underscore Industry Trends

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Publicly traded pharmaceutical services companies have reported generally good financial results for 2015. But segment results varied considerably.

Custom manufacturers of Active Pharmaceutical Ingredients (APIs) and intermediates were best performers, with the seven reporting companies averaging 11.2% growth for the year (Figure 1, below). Notably, the strong performance reflects strength in custom manufacturing of small molecule products, as only two of the seven companies that have reported thus far have biologics manufacturing businesses and one of those is too small to affect the outcome. New product launches, as well as increased development activity, contributed to the growth.

CMC development service businesses performed as well; the five reporting companies combined for an 8.7% growth rate for the year. This segment includes formulation development, CTM manufacture, clinical packaging and analytical services. The reported number probably under-represents overall activity in the segment, as most CMC development service providers don’t report or break out results. Some interim results suggest the segment has gotten even stronger in the past six months.

This article is reprinted from the March issue of Biopharmaceutical Outsourcing Report. The full article addresses the results for company fiscal year of the publicly reporting CDMOs and CROs. To learn more, click here.

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Jim Miller is the founder and president of PharmSource Information Services, Inc. A preeminent expert in bio/pharmaceutical outsourcing, Jim established and presides over the industry’s principal resource for serious consumers of information on contract drug development and manufacturing, PharmSource STRATEGIC ADVANTAGE. He is editor and publisher of Bio/Pharmaceutical Outsourcing Report and Emerging Markets Outsourcing Report.

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