Navigation Links
Rising Interest of Big Pharma Creates Immense Growth Potential for Contract Manufacturing Organisations, Says Frost & Sullivan

LONDON, May 25, 2012 /PRNewswire/ -- Increasingly, big pharma is viewing the outsourcing of pharmaceutical manufacturing as a strategic move that would enable them to focus on their core competencies such as R&D. At the same time, the patent expiry of key blockbuster drugs worth $45 billion and biologics worth $30 billion is expected to reduce the capacity utilisation rates of their manufacturing facilities, thereby making outsourcing a viable option for pharmaceutical and biotech companies.

New analysis from Frost & Sullivan (, European Pharmaceutical and Biotech Contract Manufacturing Markets, finds that the European pharmaceutical contract manufacturing market earned revenues of $10.02 billion in 2011 and estimates this to reach $20.75 billion in 2018. Over the same period, the European biotech contract manufacturing market is set to expand from $1.21 billion to an estimated $2.67 billion.

"As pharmaceutical and biotech companies strive to enhance their internal core competencies, outsourcing is likely to become increasingly entrenched as a strategic manufacturing option," notes Frost & Sullivan Research Analyst Aiswariya Chidambaram. "The impact of the economic crisis, coupled with the poor performance of the venture capital industry in Europe, has underlined the popularity of contract manufacturing as it has become synonymous with cost-cutting and the timely entry of products into the market."

In parallel, with several blockbuster drugs of large pharma and biotech companies coming off-patent, the utilisation rates of manufacturing plants are likely to reduce by half. This is set to trigger an increase in outsourcing of manufacturing by big pharma companies. Currently, big pharma companies contribute between 10 to 25 per cent of the total revenues of contract manufacturing organisations (CMOs) in Europe. Frost & Sullivan anticipates such figures to rise to 40.0 per cent by 2013, and up to 50.0 per cent by 2018.

However, stringent regulatory requirements are likely to place pressure on CMOs. As the regulatory environment in Europe becomes progressively stricter owing to contamination issues, safety compliance and drug recalls, the costs of gaining regulatory approvals will make up a major chunk of fixed costs for CMOs.

Despite this challenge, market prospects are extremely buoyant. Frost & Sullivan projects the European pharmaceutical contract manufacturing market to grow at a compound annual growth rate (CAGR) of 10.9% from 2011-2018, with its biotech counterpart poised to register a compound annual growth rate of 12.1% over the same time frame.

"Although the demand for manufacturing capacity is rising, a careful weighing of benefits and risks is required by CMOs while planning capacity expansions lest they be hit by over capacity, which, in turn, could lead to the acquisition of smaller CMOs by larger ones," cautions Aiswariya. "Promisingly, there is tremendous untapped potential for CMOs which are properly positioned and at the forefront of technology in the capital-intensive and technology-driven contract manufacturing market."

If you are interested in more information on this study, please send an e-mail with your contact details to Janique Morvan, Corporate Communications, at

European Pharmaceutical and Biotech Contract Manufacturing Markets is part of the Pharmaceuticals & Biotechnology Growth Partnership Service programme, which also includes research in the following markets:  European Biosimilars Market and Generic Pharmaceuticals Market – A Global Analysis. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. 

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.  
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible.  This includes our 360-degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.  

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:   Start the discussion

Join Us:         Join our community

Subscribe:     Newsletter on "the next big thing" 

Register:        Gain access to visionary innovation

European Pharmaceutical and Biotech Contract Manufacturing Markets


Janique Morvan
Corporate Communications – Europe
P: +33 (0)1 42 81 20 37
M: +33 (0)6 79 22 41 42

SOURCE Frost & Sullivan
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. Fiberstar Posts Strong Second Quarter Operating Results on Continued Rising International Demand
2. Rising Replikin Counts in E. Coli in Germany Since 2005 Preceded Current E. Coli Outbreak
3. Investor Uprising Publishes Free Biotech Investment Report
4. BioNanomatrix Founder and CSO Dr. Han Cao Awarded Chinese Rising Star Entrepreneur Award
5. Surprising discovery: X-rays drive formation of new crystals
6. The MedZilla Report for September 2009 - Care Grows Again in September and - Surprisingly - Pharma Sales Jobs Up Too
7. Frost & Sullivan: Lower Import Duties and Rising Customer Demand to Boost Russian Electronics Manufacturing Market
8. China Biologic Products to Present at CCG IRs China Rising Conference and Oppenheimers China Dragon Call Conference in New York
9. China-Biotics, Inc. to Present at CCG Investor Relations China Rising Conference
10. Proteomics Study Reveals That Genes Involved in Invertebrate Longevity Have Surprising Parallels in Humans.
11. Jennifer Brownstein, of CONNEXION Healthcare, Honored as Rising Star by Healthcare Businesswomens Association
Post Your Comments:
(Date:11/25/2015)... , Nov. 25, 2015  Neurocrine Biosciences, Inc. (Nasdaq: ... , President and CEO of Neurocrine Biosciences, will be ... in New York . ... the website approximately 5 minutes prior to the presentation ... of the presentation will be available on the website ...
(Date:11/25/2015)... (PRWEB) , ... November 25, 2015 , ... ... company uBiome, were featured on AngelList early in their initial angel funding process. ... AngelList syndicate for individuals looking to make early stage investments in the microbiome ...
(Date:11/24/2015)... /CNW/ - iCo Therapeutics ("iCo" or "the Company") (TSX-V: ... the quarter ended September 30, 2015. Amounts, unless ... presented under International Financial Reporting Standards ("IFRS"). ... Andrew Rae , President & CEO of ... only value enriching for this clinical program, but ...
(Date:11/24/2015)... , November 24, 2015 ... market research report "Oligonucleotide Synthesis Market by Product & ... Gene Synthesis, Diagnostic, DNA, RNAi), End-User (Research, Pharmaceutical & ... by MarketsandMarkets, the market is expected to reach USD ... 2015, at a CAGR of 10.1% during the forecast ...
Breaking Biology Technology:
(Date:10/29/2015)... , Oct. 29, 2015 Daon, a ... that it has released a new version of its ... in North America have already ... v4.0 also includes a FIDO UAF certified server ... already preparing to activate FIDO features. These customers include ...
(Date:10/29/2015)... Oct. 29, 2015  Connected health pioneer, Joseph ... explosion of technology-enabled health and wellness, and the business ... The Internet of Healthy Things . ... smartphones even existed, Dr. Kvedar, vice president, Connected Health, ... care delivery, moving care from the hospital or doctor,s ...
(Date:10/29/2015)... 2015 Today, LifeBEAM , a ... 2XU, a global leader in technical performance sports ... with advanced bio-sensing technology. The hat will allow ... key biometrics to improve overall training performance. As ... will bring together the most advanced technology, extensive ...
Breaking Biology News(10 mins):