Navigation Links
Contract Manufacturing Organizations Can Reduce Vendor Switching with Informational Marketing Efforts
Date:11/21/2013

MOUNTAIN VIEW, Calif., Nov. 21, 2013 /PRNewswire/ -- The global contract manufacturing market is growing steadily with firms allocating up to four percent of annual organization revenues for contract manufacturing organization (CMO) services, with a likely markup to 11 percent within the next three years. On average, firms partner with six CMOs, indicating high potential for business. However, the overall satisfaction and likelihood of contract renewal is fairly low – around 40 to 50 percent across all product types. To minimize vendor switching, CMOs would do well to invest in marketing their services through outlets such as tradeshows, conference booths and word-of-mouth recommendations from colleagues.

Recent customer research from Frost & Sullivan's (http://www.lifesciences.frost.com) Competing in the Global Contract Manufacturing Market analysis, which surveyed 312 global decision makers from biotechnology and pharmaceutical firms, reveals that of all parameters used in CMO agreements and selection, volume commitments ranks as the most important, followed by manufacturing capacity and site transfer capabilities.

For more information on this research, email Jennifer Carson, Corporate Communications, at jennifer.carson@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Survey respondents indicated that overall quality, clean regulatory track record, and confidentiality/security were the primary factors considered when selecting a CMO.

"While packaging, logistics and clinical trial supply are the most prevalent services currently being outsourced, organizations are particularly keen to leverage CMOs' capabilities of outsourcing drug delivery technology services in the near future," said Frost & Sullivan Customer Research Global Director Tonya Fowler. "Thirty-seven percent of respondents also stated they were likely to partner with a CMO that functioned as an external consultant, mainly in cases where they required manufacturing consulting."

Pharmaceutical and biotechnology companies have shown a preference for CMOs operating in their region and those with improving geographic reach and expertise. However, they are unlikely to outsource research and development due to concerns regarding competitive intelligence and CMOs' inability to hire key staff.

Furthermore, of the top 15 CMOs, Baxter Biopharma Solutions, Boehringer Ingelheim, and Pfizer CentreSouce have been identified as charging the highest premiums but also offer the most comprehensive range of services.

"It is important for CMOs to keep all these preferences and perceptions in mind to formulate robust strategies to effectively compete in the market and increase the level of satisfaction and loyalty among customers," remarked Fowler.

Competing in the Global Contract Manufacturing Market is a Customer Research analysis that is part of the Life Sciences Growth Partnership Service program. The research sheds light on pharmaceutical and biotechnology companies' current and future outsourcing needs and priorities, perception towards CMOs, CMO selection criteria, and decision-making dynamics, among other areas.

Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare and LinkedIn, for the latest news and updates.

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

Competing in the Global Contract Manufacturing Market
ND00-52

Contact:
Jennifer Carson
Corporate Communications – North America
P: 210.247.2450
E: jennifer.carson@frost.com

LinkedIn: Transform Health Group 
Twitter: @Frost_Sullivan 
Facebook: Frost & Sullivan

http://www.frost.com


'/>"/>
SOURCE Frost & Sullivan
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Sysmex America Signs Two Contracts with U.S. Department of Veterans Affairs
2. Competing in the Global Contract Manufacturing Market
3. Zevacor Molecular Awards IBA Contract to Build Only Commercial 70 MeV Cyclotron Dedicated to Medical Use in the United States
4. Soligenix Submits NIAID Contract Proposal for Development of a Thermostable Ricin Vaccine
5. Pfenex Inc. awarded a subcontract by Leidos to develop a scalable cGMP production process for a second key malaria antigen
6. AMRI Awarded Development and Manufacture Contract from the UK Government
7. MabVax Therapeutics Receives $1,750,000 Small Business Innovation Research Contract Award From The National Cancer Institute To Support Development of Novel Pancreatic Cancer Diagnostic Imaging Agent
8. Verde Environmental Technologies Wins National Contract from NIDA/NIH for Development of Home Drug Deactivation System
9. Cardiac Science signs contract to provide Powerheart AEDs to the state of New Jersey
10. Global Markets for Contract Pharmaceutical Manufacturing, Research and Packaging - Focus on Contract Packaging
11. Contract Pharmas 12th Annual Contracting & Outsourcing Conference is only Two Weeks Away!
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/20/2017)... , April 20, 2017 Eyevensys, ... the first non-viral gene expression technology that enables the ... eye to address a wide range of ophthalmic diseases, ... and Healthcare products Regulatory Agency (MHRA) to advance its ... ...
(Date:4/19/2017)... 19, 2017 The Mobile X-Ray product segment is ... CAGR during the forecast period Mobile X-Ray segment ... digital mobile X-Ray devices market, which is estimated to be ... at a CAGR of 7% over the forecast period. Mobile ... more than US$ 100 Mn in 2017 over 2016. The ...
(Date:4/19/2017)... April 19, 2017 The Global Effective ... to 2022 report has covered and analysed the potential of ... on market size, shares and growth factors. The report identifies ... and opportunities in the global market. ... Browse 152 Tables and Figures, 6 Major Company ...
Breaking Medicine Technology:
(Date:4/27/2017)... ... April 27, 2017 , ... The ... Rewards, and Recognition: A Nudge Guide," a groundbreaking analysis of how behavioral economics ... takeaways to apply immediately to IRR programs, the report highlights proven behavioral economics ...
(Date:4/27/2017)... ... April 27, 2017 , ... Last night, Christine Collins ... the Year for her extraordinary compassion and lifelong dedication to serve others. Since ... caregivers for the prestigious award each year – identifying a CAREGiver who has ...
(Date:4/27/2017)... ... , ... Are you investing in the safety of your friends and family? ... summer. While most of us assume this type of accident will never happen to ... are taking the time to learn how to respond effectively or prevent these accidents ...
(Date:4/26/2017)... (PRWEB) , ... April 26, 2017 , ... Journal ... adults. It can have severe consequences to overall dental health, including complications with speech, ... often turn to dental implants to replace lost teeth. As the number of tooth ...
(Date:4/26/2017)... ... April 26, 2017 , ... Elisabete Miranda, president and ... by Enterprising Women magazine as one of its 2017 Enterprising Women of the ... Winners have demonstrated that they have fast-growth businesses, mentor or actively support other ...
Breaking Medicine News(10 mins):