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July 2017

Welcome to the July 2017 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 July issue!

The PharmSource Team


Growing Mexico Is Home to Solid CMO Population

by Lisa Tilley Hinkle, Managing Editor

Proximity to the US, a strong regulatory scheme, affordability and decades-long relationships forged with the help of the North American Free Trade Agreement (NAFTA) are among the factors that may make Mexico an attractive location for contract manufacturing services, particularly for products sold in the US or Latin American markets. The country is also fairly well-populated with CMOs that already have experience producing drugs to meet the regulatory requirements of the US and other nations.

According to a May 2016 report by PharmSource’s colleagues at GlobalData, the Mexican pharmaceutical market is forecast to grow… read on

Contract Manufacturing Through the Years

by Jim Miller, President

The 40 years during which Pharmaceutical Technology has served the bio/pharmaceutical industry have been years of momentous growth and change in the way drugs are discovered, developed, manufactured, and sold. CDMOs have long played a part in the industry’s growth, but it is only in the past 20 years that they have become a critical element in bio/pharmaceutical company operations. In light of Pharmaceutical Technology’s 40th anniversary, it is appropriate to review the CDMO industry’s evolution and outlook.

Phase one of the CDMO industry includes the years prior to 1996. In those years, there were three primary participants in the CDMO industry: global bio/pharma companies that provided manufacturing services to each other; fine chemical companies providing intermediates; and… read on

AMRI Sold to PE Firms

by Jim Miller, President

Albany Molecular Research Inc. (AMRI) is being taken private in a deal that values the company at $922 million. The buyers, private equity firms The Carlyle Group and GTCR, are newcomers to the CDMO space, although Carlyle also owns CRO PPD Inc. The investors are paying $21.75 per share, a 42% premium over the average price at which AMRI was trading prior to April 5, 2017, when news of a possible sale first broke. The deal is expected to close in the third quarter of this year.

AMRI had revenues of $570 million and a net loss of $70 million in 2016; 60% of revenues were generated from… read on

Dose CMOs Stuck in Idle

PharmSource’s just-released trend report, Contract Dose Manufacturing Industry by the Numbers: Composition, Size, Market Share and Outlook – 2017 Edition, reveals several factors for the dose CMO industry’s relatively poor performance in 2016:

1. Rebound in drug development since 2013 is too recent to benefit dose CMOs

2. Heavy investment in captive capacity by global bio/pharma companies

3. Declining significance of dose manufacturing in drug cost of goods as new drugs with high value APIs dominate the pipeline


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