Dose CMO Industry Growth Not Sustainable, Despite Outpacing Overall Bio/Pharma Industry

PharmSource report forecasts slowing growth rate as headwinds increase

Fairfax, VA, USA (September 1, 2015) – Growth of the bio/pharmaceutical contract manufacturing sector is likely to be suppressed near-term, despite an increase in the number of product approvals, thanks to shrinking product volumes and high levels of capital investment by bio/pharmaceutical companies.

This prognosis is well substantiated in a report published by the industry’s preeminent expert, PharmSource Information Services, Inc. Although contract manufacturing of bio/pharmaceutical finished dose forms grew at twice the rate of the overall industry during the 2012-2014 period, contract manufacturing organizations (CMOs and CDMOs) and their investors should be alerted that recent growth rates are unlikely to be sustainable.

The new report, Contract Dose Manufacturing Industry by the Numbers: Composition, Size, Market Share, Profitability and Outlook–2015 Edition, is the bio/pharmaceutical industry’s singular authoritative analysis of the future of the dose CMO business.

The expert analysis is derived from PharmSource’s proprietary database of global contract manufacturers. It reflects the company’s deep knowledge of contract drug development and manufacturing, as well as its relationships with the industry’s leading participants.

Far-reaching insights detailed in Contract Dose Manufacturing Industry by the Numbers–2015 Edition include:

  • The contract dose manufacturing industry generated revenues of $16.8 billion in 2014.
  • Acquisitions of facilities from bio/pharmaceutical companies were responsible for a significant share of industry growth.
  • The industry is increasingly consolidated, with just 16 CMOs out of a universe of 221 companies accounting for 50% of industry revenues.
  • Going forward, CMO industry growth will be challenged by the captive capacity now being built by bio/pharmaceutical companies, along with shrinking unit volume per product, fewer opportunities to acquire bio/pharma company facilities, and increasing efforts to control drug costs.

The information in this data-rich report will help CMOs and their investors make informed critical strategic decisions. Bio/pharmaceutical sourcing and procurement executives will find this intelligence invaluable for assessing their current CMO network and developing long-term sourcing strategies.

PharmSource is the recognized unbiased authority of knowledge about the global bio/pharmaceutical contract services industry. The company’s proprietary publications, database platforms, research tools and analyses inform buyers and sellers of bio/pharma contract services about industry trends, activities and partnership opportunities.

Since 1996, bio/pharmaceutical companies, CMOs, CDMOs and CROs worldwide have looked to PharmSource for expert information delivered with timeliness and integrity. To learn why 70% of the largest bio/pharmaceutical companies, and 70% of the top global CMOs, rely on PharmSource, visit www.pharmsource.com.