PharmSource Report Says Bio/Pharma Companies Prefer In-House Manufacturing

Global and generic bio/pharmaceutical companies will continue to prefer in-house manufacturing to outsourcing for the most strategic elements of their businesses, according to a new report Bio/Pharma CapEx Trends 2016 from PharmSource Information Services. In the new report, released on Sept. 27, 2016, PharmaSource says bio/pharma companies have spent over $150 billion for new plant and equipment in the past five years. PharmSource noted that captive capacity remains the largest impediment to faster growth of the contract manufacturing and development industry.

The PharmSource report reviews data from 520 publicly traded companies, along with the data of 140 announced manufacturing and R&D infrastructure investment projects. The data captures the bulk of industry capital spending and paints an illustrative picture of how companies are investing in facilities and equipment. This PharmSource report is an update to the previous analysis, Bio/Pharma CapEx Trends: Sponsor Spending on In-House Capacity Trounces Outsourcing, published in 2014. The updated version of the report can be found here.