New PharmSource Report says Dose CMOs Stuck in Idle

Fairfax, VA (July 12, 2017) – The contract dose manufacturing industry struggled with low growth in 2016 even as other contract service providers enjoyed double-digit growth rates. The reasons for the disappointing performance are analyzed in the latest edition of PharmSource’s Trend Report, Contract Dose Manufacturing by the Numbers – 2017 edition.

According to Contract Dose Manufacturing by the Numbers – 2017 Edition, the dose CMO industry grew just 4% in 2016, well below the nearly 15-20% achieved by contract API manufacturers and CMC development services. The disappointing performance was the fifth year in a row that the industry’s growth rate has declined after peaking at 7% growth in 2011.

In Contract Dose Manufacturing by the Numbers – 2017 Edition, co-authors Saul Richmond, PhD, PharmSource Director of Market Intelligence, and Jim Miller, PharmSource president, cite several factors for the dose CMO industry’s relatively poor performance:

  • The rebound in drug development since 2013 is too recent to benefit dose CMOs, which tend not to come into play until late in the development process;
  • The heavy investment in captive capacity by global bio/pharma companies (Top 25 by revenues), which have spent over $125 billion for new plant and equipment in the past six years;
  • The declining significance of dose manufacturing in drug cost of goods as new drugs with high value APIs, including biologics and high potency small molecule products, dominate the pipeline.

“The dose CMO industry has struggled to keep up with the performance of other bio/pharmaceutical contract services sectors,” said Saul Richmond, “but innovation-driven CMOs are likely to benefit from the rich pipeline of novel products and technologies. The industry continues to attract strategic and financial investors drawn by the promising pipeline.”

PharmSource has published Contract Dose Manufacturing by the Numbers annually since 2012. The findings are based on a rich database of CMO financial performance data built up over 20 years of tracking and analyzing the dose CMO industry. The report includes a complete explanation of the analytical methodology so that users can have a thorough understanding of and confidence in the report’s findings.

For more information about Contract Dose Manufacturing by the Numbers – 2017 Edition go to www.globaldata.com/store/report