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June 2016

Welcome to the June 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 June issue!

The PharmSource Team


Proposed Saudi Shift Away from Oil May Favor Bio/Pharmaceutical Industry

Saudi Arabia is restructuring its economy to reduce its dependence on oil. The bio/pharmaceutical industry has not been mentioned specifically as yet in those restructuring plans, but a number of policies already in place in the country are meant to spur bio/pharmaceutical industry growth in the country. There are few dedicated Contract Manufacturing Organizations (CMOs) operating in the country currently, but bio/pharmaceutical manufacturing operations there might be helped by arrangements that could absorb excess capacity.

IMS Health estimates that the Saudi bio/pharmaceutical market will grow at an average annual rate of… read on

Watch Out for the Hangover

by Jim Miller, President, PharmSource

Merger and acquisition (M&A) activity remains robust across all industries, including contract pharmaceutical services, as low interest rates and slow organic growth create both the opportunity and the rationale for doing deals.

Recent events suggest that the world may have reached the boundaries of what is doable, however, as some large deals, such as the proposed combination of Pfizer and Allergan in pharma and Halliburton and Baker-Hughes in petroleum, have fallen apart over issues of tax policy, antitrust, and global commodity prices. Volatility in the world’s stock markets is also making it more difficult to do deals where payment is to be made in shares rather than cash.

Deals in the contract manufacturing organization (CMO) world aren’t likely to be affected by… 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 innovator API development and manufacturing – outsourced spending:

Market Size Source
2015: $13-15 billion Cambrex
Presentation at Jefferies 2016 Global Healthcare Conference
June 2016

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

It’s Getting Harder for Bio/Pharma to Raise Money

It’s not surprising that CMOs may not be feeling the impact of the funding downturn quite yet. After the 2008 global financial crisis, it took two years for IND filings and Phase 1 clinical trial starts to reflect the funding decline.

Companies used their remaining cash to get candidates into the clinic as quickly as possible in hopes of demonstrating proof-of-concept, the prerequisite for licensing deals and more external funding. The most recent downturn in external financing is barely a year old, so it could be a while before CMOs really feel the pinch.

This is a good time for service providers to focus on resurrecting their business development skills. After several years of just answering unsolicited external inquiries, they will soon have to… read on

What’s New on Strategic Advantage

Products by Manufacturer

  • The products search is now accessible directly from the Strategic Advantage home page rather than through Strategic Searches.

Emerging Markets Manufacturers

  • You can now search for service providers by country.

Questions? Contact Blythe Moore at | Tel. +1-703-383-4903, ext. 104.

PharmSource Strategic Advantage

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