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Injectable Dose Formulations Highly Impact Global Pharmaceutical Contract Manufacturing Vendor Revenues
Date:8/28/2013

t for more than 50 percent of their revenue. Coupled with huge tax incentives and lower inventories for low-volume products, this creates immense pricing pressures for CMOs.

Currently, the US and Europe are major markets for outsourcing finished dose formulations and sterile preparations, while Asian CMOs are preferred destinations for active pharmaceutical ingredients, intermediates and generics. However, given the immense cost benefits, Asian CMOs, like in India, China and Singapore, will likely emerge as favorable destinations, particularly for solid dose formulations.

To maintain a competitive edge amidst stiff competition, CMOs are striving to provide a greater value proposition for clients by engaging in early life-cycle stage projects and establishing long-term relationships. Promoting additional services such as formulation improvements, alternate dose forms, real-time order tracking, and logistics support will also be necessary to attract new customers.

"Consolidation in the form of acquisitions and strategic alliances to gain access to new, emerging markets and niche segments will be crucial for both small and large CMOs," concluded Chidambaram. "Large CMOs can broaden their geographic presence, while small CMOs can leverage the technical expertise and resources of large CMOs to enlarge their footprint."

Global Pharmaceutical Contract Manufacturing Market is part of the Life Sciences Growth Partnership Service program. Frost & Sullivan's related research services include: Global CRO Market: Quantitative Assessment, Generic Pharmaceuticals Market – A Global Analysis, US CRO Markets – Key therapeutic Areas, European CRO Markets – A Strategic Analysis. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market
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