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Bright Future Ahead for Biopharmaceutical Contract Manufacturing, Says Frost & Sullivan
Date:10/1/2013

ufacturing market and is anticipated to grow as high as 65 percent over the next five years, at a significantly higher rate than microbial cell-based contract manufacturing segment.

Increasing adoption of the Large Molecules model by big pharma companies will also boost prospects. Of the top 15 pharmaceutical companies, nearly 80 percent are expected to experience a net growth in their biologics portfolio. The big pharma shift to large molecules will likely be led by monoclonal antibodies (mAbs) and is projected to grow at a CAGR of 10.8 percent from 2012 to 2017.

Companies will also increasingly outsource crucial operations and will seek to adopt an integrated/risk-sharing business model. The aim is to provide a "one-stop-shop" option for the biopharmaceutical companies where they can exploit the resources and expertise of the CMOs to reap maximum benefits, while they concentrate on their core capabilities and R&D activities.

Industry consolidation in the form of mergers, acquisitions and strategic alliances between CMOs, biopharmaceutical companies and technology providers are likely to increase, so as to gain access to newer geographies, niche product segments, and latest technologies. Targeting the right market niches will be crucial for long-term sustenance.

"As biopharmaceutical companies continue to focus on improving efficiency and productivity at lower costs," concludes Chidambaram, "CMOs are required to achieve the same internally through better integration of services and remaining at the forefront of technology."

If you are interested in more information on this Market Insight, please send an email to Anna Zanchi, Corporate Communications, at anna.zanchi@frost.com

About Frost & Sullivan

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