Companies and Markets
Call us on +44 (0) 203 086 8600
Market Research A to Z | Company Profiles A to Z | RegisterRegister | Contact UsContact Us | Shopping Basket Shopping Basket
+44 (0) 203 086 8600 Call us on

Global CMO market to cut costs by outsourcing production to Asia

Industry Sector

Healthcare and Medical

Published

5 November 2012

Author

Mike King

Type of News

Market

The global contract manufacturing organisations (CMO) market has been forecast to increase at a compound annual growth rate (CAGR) of 11% through to 2018, reaching a market value of $59.9 billion. The industry is set to grow steadily, due to increasing levels of pharmaceutical outsourcing and generic manufacturing.

CMOs are set to progressively become more and more popular, as Western pharmaceutical companies outsource production to Asian countries in a bid to cut costs. Overall cost of drug manufacturing is up to 50% cheaper in India than in Western countries, which is pushing Big-Pharma abroad.

CMOs provide independent manufacturing services for pharmaceutical and biotechnological markets. CMOs have evolved from initially providing basic manufacturing services to providing a wide range of services that suit the demand of the market and the outsourcers, they are equipped with the required expertise, resources, technologies and tools as a viable option to save cost and time.

Major CMOs offer upstream and downstream manufacturing functions equally; and, in addition to manufacturing in biopharmaceutical production, they also offer clinical trials, logistics, packaging, and even marketing.

The US CMO market is the largest market for pharmaceutical contract manufacturing, having generated approximately $10.7 billion in revenues in 2011. The industry is then expected to grow at 7% to 9% until 2016.

The expansion of the CMO market is being driven by the steady growth of the US pharmaceutical industry, as well as increased outsourcing of large pharma companies that are focusing on core competencies to improve profit margins. The US will continue to face a challenging economic environment in the near future.

The priority of these points of competition will shift slightly depending on segment of the industry. Price will be a significant factor in determining contracting for solids, but quality and proprietary platforms become more important in sterile manufacturing services.

For more information on the global CMO market, see the latest research: Global CMO Market

Follow us on Twitter @CandMResearch

Visitor Comments

All posts are pre-moderated and must obey the house rules.

Change Currency

GBP
USD

Change Currency

GBP
USD

Use our research skills: Get free support

Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support

December Discounted Prices: Contact us to ask about our special discounts available in December

For the last month in 2014 we are offering discounted prices on a selection of new reports. Please contact us on 00 44 (0) 203 0868600 or via email (click here to email) to ask about prices and special discounts.

Available during December and the run-up to Christmas; Discounted prices on a selection of our reports.

Find all the research at the best prices. Great promotions being offered during December!

We are offering our clients substantial savings on the best research available during December. Please contact us either via emailor by calling our team to discuss your specific research needs on Tel: 00 44 (0) 203 0868600. We look forward to being able to find you the research you require at good prices.

Accessibility
Close

Contrast settings

Text size settings