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January 2016

Welcome to the January 2016 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 January issue!

The PharmSource Team


Exchange Rates Alter CMO Competitiveness

Sharp movements in exchange rates between the US dollar and major developed country currencies could hurt the competitiveness of US-based CMO operations in coming years. At the same time, they could spur even further consolidation in the CMO industry.

Both the euro and Canadian dollar have lost 17% of their value relative to the US dollar in the past year. That means that a €1 million manufacturing or development contract with a European CDMO, which would have cost a US client $1.3 million in 2014, will now cost that US client just $1.1 million. Similarly… read on

ADC Market Opportunity for CMOs

PharmSource’s just-released report, ADC Market Opportunity for CMOs, is an indispensable resource for understanding the technical developments in the ADC sector and the scale of the commercial opportunities and risks for CMOs.

The CDMO sector is investing significant resources to expand its capabilities in the ADC arena. More than 20 companies are active in the sector although, to date, no single company… click here

Changing Regulations May Broaden CMO Market Opportunities in China, Russia, India

Changing regulations in the developing world could indicate an expanding market for CMOs in emerging markets. Chief among these is a three-year pilot program in China aimed at increasing registration of new products with the China Food and Drug Administration (CFDA), which could lead to growing demand for clinical and commercial contract manufacturing services.

The current Chinese drug approval system requires that… read on

CMO Consolidation Pace May Slow Down

by Jim Miller, President, PharmSource

Consolidation is an obsession for contact manufacturing organization (CMO) executives, who worry about the competitive challenges posed by larger players; and for sourcing executives, who worry about the implications for supply chain security and relative pricing power. But will the CMO industry consolidate, and at what pace?

Consolidation is the process by which a shrinking number of companies control an increasing share of the available revenues in a given industry. It typically indicates a period where organic growth is slowing and where factors like economies of scale or brand recognition… read on

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