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Trends in Biopharmaceutical Contract Manufacturing

corresponding

WILLIAM DOWNEY 
HighTech Business Decisions, 3150 Almaden Expressway, Suite 222, San Jose, California 95118, USA 

Abstract

Over the past decade, the demand for biopharmaceutical contract manufacturing services grew at a compound annual rate of 13% per year. During this time, pharmaceutical and biotechnology companies have increasingly relied on contractors for the production of their biologic drug substances. There are many reasons for pharmaceutical and biotechnology companies to use contract manufacturing organizations (CMOs) to produce their biologic drug substance, including limit risks, reduce the overall investment required to bring a new drug product to market, gain access to markets or technologies, and greater flexibility. In the future, large pharmaceutical and biotechnology companies will increasingly rely on CMOs for the production of their biopharmaceutical drug substances. As a result of these trends, the market for biopharmaceutical contract manufacturing services is expected to reach $3.1 billion by 2016.


INTRODUCTION
Over the past decade, the demand for biopharmaceutical contract manufacturing services grew at a compound annual rate of 13% per year. The source of this growth results from several underlying factors, including, the growth of the biopharmaceutical drug market, the increase in the number of biopharmaceutical development projects, and the increase use of contract manufacturing organizations (CMOs) by the pharmaceutical and biotechnology industry for the production of their biopharmaceuticals. The recent recession, the slow economic recovery, and the lower approvals rates for new molecular entities dampened the demand for biopharmaceutical contract manufacturing services in 2010 and 2011. In response to these changes, there has been some consolidation