Emerging bio/pharma companies are benefitting from a surge in financing from venture capital, initial public offerings and secondary offerings. Given the fertile financial environment as well as growth in early-phase pipeline efforts contract bio/pharma development, manufacturing and research organizations can expect a business surge for at least the two next years.
PharmSource Information Services Inc. outlines this prediction as well as justifications for it in a new trend report titled CDMO and CRO Outlook: Robust Market Conditions Augur Growth, More M&A Activity Ahead. PharmSource is a premier leader in market intelligence for the global contract bio/pharma industry.
“The bio/pharma industry’s need for new products, and the likelihood of the continued need for monetary stimulus in the macroeconomic environment, should provide a steady flow of new funding for an extended period,” said Jim Miller, PharmSource’s founder and president and the report’s lead author. “The current environment is driving higher volumes and better pricing, but most CDMOs will be constrained by their capacity to handle all of the opportunities.”
Miller cautions that there are risk factors that CDMO and CRO executives must be aware of, including facility and personnel challenges that may likely increase administrative costs as well as constrain capacity and spur greater merger and acquisition activities.
In developing the report, PharmSource’s experts researched data for financing-dependent companies that do not generate sufficient revenue to fund research and development activities internally. Rather, these companies rely on external financing, including venture capital and initial and secondary public offerings. Funding from such external sources doubled in the first half of 2014 versus 2013, to almost $17 billion, according to the PharmSource report.
PharmSource (pharmsource.com) is the recognized authority of unbiased knowledge about the global bio/pharmaceutical contract services industry. The company’s proprietary publications, databases, research tools and analyses inform buyers and sellers of bio/pharma contract services about industry trends, activities and partnership opportunities. Since 1996, CMOs, CDMOs and CROs worldwide have looked to PharmSource for critical information delivered with timeliness and integrity. Learn more online.