CMO Industry Growth Unsustainable According to Report

A report published on Sept. 1, 2015 by PharmSource states that, despite an increase in the number of product approvals, growth of the bio/pharmaceutical contract manufacturing sector is projected to slow down. The report states that shrinking product volumes, fewer opportunities for facility acquirement, increasing efforts to control drug costs, and high levels of capital investment by biopharma companies are contributing to the slow growth.

PharmSource states that the contract dose manufacturing industry generated $16.8 billion in revenues for 2014, due in part by the acquisition of facilities. Out of 221 companies, 16 account for 50% of industry revenue. According to the PharmSource, however, “although contract manufacturing of bio/pharmaceutical finished dose forms grew at twice the rate of the overall industry during the 2012–2014 period, contract manufacturing organizations (CMOs and CDMOs) and their investors should be alerted that recent growth rates are unlikely to be sustainable.”

Source: PharmSource