The 30 leading CMOs will account for more than a third of the pharma contract manufacturing market in 2013

Friday 30 August 2013, Amsterdam

Between 2008 and 2012, many leading contract manufacturing organisations (pharma CMOs) struggled for revenue growth. In that period, revenue for the top five developed-market CMOs grew with a CAGR of just 0.9%. We forecast stronger growth for these market leaders between 2013 and 2023, with revenue growing at a higher rate than for the contract manufacturing market as a whole. Throughout that period Catalent Pharma Solutions will be the world’s leading CMO, accounting for more than 3.5% of the market annually. These findings appear in Pharma Leader Series: Top Pharma Contract Manufacturing Organisations (CMOs) 2013-2023, published in June 2013.

Although US and European CMOs dominate the contract manufacturing market in 2013, visiongain forecasts faster growth for emerging-market leaders. For companies such as Shandong Xinhua Pharmaceutical and Dr. Reddy’s Laboratories, demand from domestic pharmaceutical companies and, increasingly, foreign drug developers will drive growth. Between 2012 and 2017 revenue for emerging-market leaders will grow with a CAGR above 10%. In developed markets, CMOs with expertise in biopharmaceutical drug manufacturing, such as Boehringer Ingelheim BioXcellence, will experience fastest revenue growth.

This new report profiles 30 leading CMOs operating in developed and emerging pharmaceutical markets. For each of the leading companies, the report provides an overview of the service portfolio, an analysis of recent financial performance and developments in the sector. The report also identifies strengths, weaknesses, opportunities and threats facing each company in this market for the period 2013-2023. We forecast contract manufacturing revenues for 23 of the 30 market leaders. The report analyses how each of the leading companies is responding to trends from the pharmaceutical industry and other events in healthcare.

Richard Lang, a pharmaceutical industry analyst, said: “The pharma contract manufacturing market is fragmented, with many CMOs in each region offering similar services.  A clear strategy for growth for the market leaders in the coming decade is differentiation, adopting novel technologies to meet the changing demands of the pharmaceutical industry. Many highlight antibody-drug conjugates (ADCs) as an opportunity for growth, for example.

“Trends that will become increasingly important for CMOs towards 2023 include the development of biologics, as well as increased interest in biosimilar drug development in the US and EU. CMOs will also need to be aware of growth in rapidly emerging markets - many are choosing to open new facilities in BRIC countries. To increase market share, though, these companies must ensure that their services are easily differentiated from their competitors, while still covering the needs of drug developers.”

Pharma Leader Series: Top Pharma Contract Manufacturing Organisations (CMOs) 2013-2023 analyses 30 leading companies in that market. The report adds a range of Pharma Leader Series and Medical Device Leader Series reports, assessing the prospects of top companies in healthcare.