Biopharmaceutical Contract Manufacturing Study Predicts Growth Through 2014

The demand for biopharmaceutical contract manufacturing services is expected to grow at 16 percent annually over the next five years. This is as biopharmaceutical business models shift toward more outsourcing of production requirements, as well as some large pharmaceutical companies choosing not to expand their internal capacities.

Industry expression yields have improved significantly, and technologies such as better expression systems, more efficient cell lines and improved media present new opportunities to improve productivity further.

The ninth industry study published by HighTech Business Decisions "Biopharmaceutical Contract Manufacturing 2009: Expanding Markets, New Capacities and Improved Performance" reports that current contractor capacity utilization is slightly lower than 2006 levels. This temporary decline in utilization results from a combination of previous investment in capacity, improved expression yields, and slow down in biotechnology investments because of the current financial markets. Over the next few years, demand is expected to grow as new biopharmaceuticals move through the clinical pipeline and become commercial products.

William Downey, president of HighTech Business Decisions, explains, “We interviewed 48 biomanufacturing and outsourcing directors of biopharmaceutical and biotechnology companies worldwide, and 29 biopharmaceutical contract manufacturers (CMOs). There is general consensus that the CMO industry as a whole will remain strong and grow, but the industry will undergo consolidations.”

The market for biopharmaceutical contract manufacturing is estimated to be US$2.6 billion in 2009, and long-term growth prospects remain strong through 2014.