API Outsourcing is Mixed - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

API Outsourcing is Mixed
Contract manufacturers of APIs and intermediates report gains, but express caution.


Pharmaceutical Technology
Volume 33, Issue 3, pp. 14


Patricia Van Arnum
Reduced expectations sum up the mood of contract manufacturing organizations (CMOs) of active pharmaceutical ingredients (APIs) and intermediates, according to a recent survey by the Synthetic Organic Chemical Manufacturers Association (SOCMA). SOCMA, the US-based trade association representing custom and batch manufacturers, released the results of its annual business survey at InformEX, which was held in San Francisco in late January. SOCMA conducted the survey Nov. 13–Dec. 22, 2008.

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

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
What role should the US government play in the current Ebola outbreak?
Finance development of drugs to treat/prevent disease.
Oversee medical treatment of patients in the US.
Provide treatment for patients globally.
All of the above.
No government involvement in patient treatment or drug development.
Finance development of drugs to treat/prevent disease.
23%
Oversee medical treatment of patients in the US.
14%
Provide treatment for patients globally.
7%
All of the above.
47%
No government involvement in patient treatment or drug development.
9%
Jim Miller Outsourcing Outlook Jim MillerOutside Looking In
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerAdvances in Large-Scale Heterocyclic Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler New Era for Generic Drugs
Sean Milmo European Regulatory WatchSean MilmoTackling Drug Shortages
New Congress to Tackle Health Reform, Biomedical Innovation, Tax Policy
Combination Products Challenge Biopharma Manufacturers
Seven Steps to Solving Tabletting and Tooling ProblemsStep 1: Clean
Legislators Urge Added Incentives for Ebola Drug Development
FDA Reorganization to Promote Drug Quality
Source: Pharmaceutical Technology,
Click here