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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!
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:
|2015: $13-15 billion||Cambrex
Presentation at Jefferies 2016 Global Healthcare Conference
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 firstname.lastname@example.org | Tel. +1-703-383-4903, ext. 104.
PharmSource Strategic Advantage
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 email@example.com / +1-703-383-4903, ext. 112 (ET USA).