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Rising Interest of Big Pharma Creates Immense Growth Potential for Contract Manufacturing Organisations, Says Frost & Sullivan
Date:5/25/2012

nticipates 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 janique.morvan@frost.com.

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 participan
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