Although a majority of respondents (62%) reported that their companies had an increase in sales in 2008, this level was down from 2007, when 76% reported an increase, and 2006, when 79% reported a gain. And for 2009, only 61% of companies expect to realize a sales increase.
CMOs also had a slight decline in capacity utilization for 2008, when the survey reported an average capacity utilization among respondents of 72.7%. This level compares with 76.2% in 2007 and 75.7% in 2006.The outlook for contract API manufacturing is still positive, but expectations are lower. Seventy-five percent of respondents expect more projects to be outsourced during the next three years. This level is down from the 80% in 2007 that felt that outsourcing was going to increase near term, but up from the 70% in 2006 that projected an increase.
So what is the bottom line? Despite downward indications, a majority of CMOs still expect sales gains in 2009, a fortunate development given the uncertain economy and difficulties other industries face.
Patricia Van Arnum is a senior editor of Pharmaceutical Technology. Read Patricia’s blog posts atPharmTech Talk