SOURCE: Kalorama Information

Kalorama Information

February 12, 2009 15:00 ET

Biopharma Driving Increase in Contract Pharmaceutical Manufacturing

NEW YORK, NY--(Marketwire - February 12, 2009) - The pharmaceutical manufacturing industry is evolving as new technologies such as biologics and sterile manufacturing take over, requiring specialized production and processes. The sheer numbers of biologics in the pipeline are driving drug makers to outsource specialized production rather than build new plants. Medical market research publisher Kalorama Information, in its new report, "Pharmaceutical Outsourcing Opportunities Post-Launch," estimates the market for contract manufacturing of prescription drugs will exceed $30 billion in 2008, which represents an increase of 10% from the prior year.

The two fastest growing sectors in the contract manufacturing market are biomanufacturing and secondary manufacturing. The expansion of biotech-derived protein and peptide drugs, antibiotics, and chemotherapeutic agents administered as sterile injectable drugs is creating a brisk business for sterile secondary contract manufacturing, as these processes are often not included in the core competency of pharmaceutical and biotech drug makers.

While the primary CMO sector, which includes active pharmaceutical ingredients and chemical intermediates, is plagued by overcapacity, reduced drug output and a highly competitive landscape, the secondary CMO sector is enjoying strong growth, thanks in large part to the robust demand for sterile manufacturing. As a result, many CMOs, such as Lonza, DSM, and Avecia, are expanding their capabilities to include biopharmaceutical facilities. They are also turning to smaller emerging drug companies for new business and must therefore change their business model, as their needs are different and they outsource many activities major drug companies do internally.

"Cost is important, but so are speed and flexibility," said Bruce Carlson, publisher of Kalorama Information. "Pharma companies that want to pursue specialized niches, complicated drug delivery and/or biologic drugs will have to contact a CRO."

Kalorama Information's new report, "Pharmaceutical Outsourcing Opportunities Post-Launch: Contract Manufacturing and Contract Sales and Marketing, 3rd Edition," provides a detailed review of the CMO and CSO markets, including challenges facing the changing marketplace, company profiles, and market size and forecasts through 2013, broken down by primary, secondary and biopharmaceutical manufacturing, by contract sales and marketing and by regions. For further information visit:

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Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. We routinely assist the media with healthcare topics.

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