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European CMO Markets Spurred by Rise in the Number of Biologicals - Contracted services in the pharmaceutical industry are increasing due to challenges such as declining R&D productivity, increasing generic penetration, spiralling development costs and pipeline woes
European CMO Markets Spurred by Rise in the Number of Biologicals

 

NewswireToday - /newswire/ - London, United Kingdom, 2008/05/27 - Contracted services in the pharmaceutical industry are increasing due to challenges such as declining R&D productivity, increasing generic penetration, spiralling development costs and pipeline woes.

   
 
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The sharp rise in the number of biologicals paralleled by the expertise and cost savings offered by contract manufacturing organisations has underlined their appeal.

New analysis from Frost & Sullivan (pharma.frost.com), European Pharma/Biotech Contract Manufacturing Markets: A Strategic Outlook, finds that contract manufacturing and outsourcing (CMO) has evolved to include services ranging from dosage form design, process optimisation and commercial stage manufacturing to packaging, logistics and marketing support.

"Heightened focus on core competencies and the increasing number of biologicals will be the key drivers in the European CMO market," notes Frost & Sullivan Senior Research Analyst Sumanth Kambhammettu. "The technical expertise and cost savings offered by CMOs will make them an attractive proposition to most pharma/biotech companies even as the demand for generics and biosimilars boosts revenue potential."

CMOs in Europe will benefit from the growing number of biologicals set to arrive in the market over the next five to six years. First-generation products, such as antibodies targeting cancers, and protein therapeutics are driving the current demand. In 2005 and 2006 respectively, 19 and 23 new drugs were approved.

However, rising competition from Indian and Chinese CMOs, the dearth of fully integrated CMOs and tighter regulations are some of the major challenges that market participants can expect to encounter.

"The past few years have seen the emergence of moderate competition from Indian and Chinese CMOs," explains Kambhammettu. "Indian CMOs, in particular, have been aggressively pursuing acquisitions to boost capacities. In addition, increased regulatory requirements in Europe and a shortage of CMOs offering end-to-end services are likely to restrict growth."

European CMOs must leverage low-cost contract manufacturing markets such as India and China to enhance their efficiencies. Moreover, similar to North American service providers, European CMOs should adopt a dynamic approach and provide more value-added services such as packaging, logistics and marketing support.

Since the European Union (EU) presents a more diverse environment than the North American market, knowledge of local regulatory requirements and the dynamics of local pharmaceutical industries in each EU member country will be critical to success.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the European pharma/biotech contract manufacturing markets, then send an email to Patrick Cairns, Corporate Communications, at pcairns_pr[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

European Pharma/Biotech Contract Manufacturing Markets: A Strategic Outlook is part of the Pharmaceutical and Clinical Diagnostics Growth Partnership Services Programme, which also includes research in the following markets: Contract Research Organisation (CRO) Markets in Europe, Australian Contract Research Organisation (CRO) Markets, U.S. Drug Discovery Contract Research Organisation Markets, China Contract Research Organisation (CRO) Market, Southeast Asia Contract Research Organisation (CRO) Market, Advantages and Disadvantages of Increasing Pharmaceutical R&D Outsourcing to India and China and Drug Discovery Outsourcing Markets in India and China. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

European Pharma/Biotech Contract Manufacturing Markets: A Strategic Outlook - M1C3

 
 
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European CMO Markets Spurred by Rise in the Number of Biologicals

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Publisher Contact: Patrick Cairns 
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