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August 2015

Welcome to the August 2015 issue of CMC Market Outlook

This monthly e-newsletter provides valuable insights for both buyers and sellers of CMC drug development services. Our coverage will help you identify and understand market trends that will inform your strategic business perspective.

Enjoy the August issue!

The PharmSource Team


What’s Next for the CMO Industry?

by Jim Miller, President, PharmSource

Research indicates that contract manufacturing of drug product for developed markets grew 6% annually in 2013 and 2014 to $16.5 billion. The contract manufacturing organization (CMO) industry grew at twice the rate of bio/pharmaceutical industry revenues in the developed markets of North America, Europe, and Japan, which grew at approximately 2.5% according to data from IMSHealth2. As a result, CMOs now account for approximately 33% of the bio/pharmaceutical industry’s cost of goods for drug product.

Inorganic growth (i.e., acquisition of manufacturing facilities from bio/pharmaceutical companies) accounted for as much as… read on

How big is the market for…?

This is a handy guide to frequently requested data about the bio/pharma contract services industry.

The market for R&D outsourced clinical trials penetration:

Market Growth Source
40 – 50% Icon plc
Presentation at William Blair 35th Annual Growth Stock Conference
June 2015

Read more about the size of the contract services market for various segments.

CDMOs Cautiously Address Expansion

These are high times for contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs). A record flood of external financing is flowing into the bio/pharma industry. Global bio/pharma companies are outsourcing more of their development activity, and FDA is being especially accommodating. R&D spending is growing, and the clinical development pipeline is really coming to life. The explosion of development activity is pushing… read on

New search feature for identifying manufacturing partners in Asia, Africa and Latin America

Until now, sourcing professionals have been challenged to identify in-country manufacturing options in emerging markets because of the lack of CMOs in those countries. To address this issue for our clients, PharmSource has established a dedicated database within the Strategic Advantage portal, to identify manufacturing and packaging facilities in emerging markets, including facilities of bio/pharma companies.

While these bio/pharma company facilities may not formally offer contract manufacturing, they often have unused excess capacity that can be made available under contract arrangements. Both global and local bio/pharma companies are included in this new section of the database.

Known as the Emerging Markets Manufacturers feature, this search engine includes high-level information on these facilities, including dosage forms that can be manufactured and some specialty capabilities, such as specialty APIs like cephalosporins and cytotoxic APIs. Because of the obvious limitations on available data, searches in this section do not include detailed capability characteristics. The database is continuously enhanced as we identify more manufacturing sites.

The Emerging Markets Manufacturers section is accessible from the left navigation menu at or you can login here.

For questions about this feature or any other inquiries regarding PharmSource Strategic Advantage, please contact our Director of Account Management, Blythe Moore, at +1.703.383.4903, ext. 104 |

PharmSource President Jim Miller
to Speak at Two Industry Events

Contract Pharma: 14th Annual Conference and Tabletop Exhibition, New Brunswick, New Jersey
Thursday, September 17 at 2:15pm

CPhI Worldwide: Pharma Insight Briefings, Madrid, Spain
Wednesday, October 14 at 12pm


Let PharmSource be your market intelligence guide.

PharmSource’s STRATEGIC ADVANTAGE service is the industry’s most respected outsourcing information web portal for serious consumers of information on contract drug development and manufacturing. Developed from PharmSource’s expert proprietary research, you won’t find this information in any other resource.

See for yourself how this resource gives you vital tools for understanding the industry.

To request a test-drive today, contact Nathaniel Celentano at / +1-703-383-4903, ext. 112 (ET USA).