Uptick or Sustainable Growth? - Pharmaceutical Technology

Latest Issue

Latest Issue
PharmTech Europe

Uptick or Sustainable Growth?
Contract manufacturers report improving business conditions, but will they continue?

Pharmaceutical Technology
Volume 34, Issue 3, pp. 14

Patricia Van Arnum
Cautiously optimistic. That is the phrase that I heard repeatedly from the attendees and exhibitors at Informex USA, the exhibition of contract manufacturers held Feb. 16–19 in San Francisco in characterizing the market for contract manufacturing of small-molecule active pharmaceutical ingredients (APIs) and intermediates. So what is causing the caution, and what is causing the optimism?

Many suppliers report seeing an uptick in business during the past several months and an improvement in booked orders for 2010. They attribute the gains in part to better financing flow into the emerging pharmaceutical sector, which was hit hard by the financial crisis and economic downturn. Tighter credit and reduced funding were problematic for small- to mid-sized drug companies and their suppliers as development projects were eliminated, put on hold, or proceeded in a more step-wise fashion. Although many suppliers see an improvement from their customers in securing funding, the crucial question is whether recent gains will be sustainable.

A recent Pharmaceutical Technology poll conducted before Informex confirms this sentiment. Only 14% of respondents regarded improved credit and financing flow to the emerging drug sector as the most significant issue for determining the health of contract API manufacturing in 2010. Instead, respondents ranked two other conditions as the most significant: the global economic recovery (the choice of 37% of respondents) and competition from contract manufacturers in emerging market (the choice of 29% of respondents).

So what is the bottom line? Market conditions are better, but for how long remains to be seen.

Patricia Van Arnum is a senior editor of Pharmaceutical Technology.


blog comments powered by Disqus
LCGC E-mail Newsletters

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

Which of the following business challenge poses the greatest threat to your company?
Building a sustainable pipeline of products
Attracting a skilled workforce
Obtaining/maintaining adequate financing
Regulatory compliance
Building a sustainable pipeline of products
Attracting a skilled workforce
Obtaining/maintaining adequate financing
Regulatory compliance
View Results
Eric Langer Outsourcing Outlook Eric LangerBiopharma Outsourcing Activities Update
Cynthia Challener, PhD Ingredients Insider Cynthia Challener, PhDAppropriate Process Design Critical for Commercial Manufacture of Highly Potent APIs
Jill Wechsler Regulatory Watch Jill Wechsler FDA and Manufacturers Seek a More Secure Drug Supply Chain
Sean Milmo European Regulatory WatchSean MilmoQuality by Design?Bridging the Gap between Concept and Implementation
Report: Pfizer Makes $101 Billion Offer to AstraZeneca
Medicare Payment Data Raises Questions About Drug Costs
FDA Wants You!
A New Strategy to Tackle Antibiotic Resistance
Drug-Diagnostic Development Stymied by Payer Concerns
Source: Pharmaceutical Technology,
Click here