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May 2016

Welcome to the May 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 May issue!

The PharmSource Team


VC Funding Remains Robust Despite Sector Travails

Following two record fundraising years is a tough act, and 2016 is shaping up to be somewhat anti-climactic. The data in Figure 1 demonstrates just how quickly the environment has changed since the heady days of 2015. CDMOs and CROs need to be concerned about what it implies for demand for their services.

Venture capital fundraising held up pretty well, with money raised per round ($23 million) marginally increasing compared to both 2014 and 2015. We identified 101 funding rounds, down from last year’s figure of 119, but up sharply from the same period in 2014 (77). There was also some evidence that… read on

Formulation and CTM Demand Drives Expansion and Consolidation

by Jim Miller, President, PharmSource

Early development services are not the most glamorous segment of the contract development and manufacturing organization (CDMO) industry, but these days they may be the hottest. Booming market demand is driving record growth, expansion, and acquisition activity.

Formulation development and manufacturing of early-phase clinical trial materials (CTM) historically have been some of the least attractive segments of the contract services industry from a business standpoint. Typically, price points were low relative to larger-scale manufacturing services, and client churn was high because… 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 total global bio/pharmaceutical R&D spending:

Market Size Source
2015: $127 billion
2020: $148 billion
Icon plc
Presentation at JP Morgan Conference
January 2016
2015: $160 billion Catalent Pharma Solutions
Presentation at JP Morgan Conference
January 2016

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

Do you know the best target opportunities for your CMO?

We do… and now you can, too.

This data-rich report, CMO Scorecard: Outsourcing of NDA Approvals and CMO Performance-2016 Edition, identifies these 3 indicators of what’s ahead for your business:

1. Some companies and product types are more likely to use CMOs. Discover which ones make the cut.

2. NDA approvals are on the uptick – learn why that’s not all good news for you.

3. Outsourcing declines for global bio/pharma companies? Still plenty of opportunities when you know where to look.


PharmSource Strategic Advantage

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).