Biopharmaceutical Contract Manufacturing: HighTech Business Decisions' New Report Indicates Improving Demand for Outsource Services

The biopharmaceutical contract manufacturing market has grown at a compound annual rate approaching 10% over the last three years. The market for biopharmaceutical contract manufacturing services will reach US$2.8 billion this year. HighTech Business Decisions forecasts this market to grow at similar rates over the next five years. Responding to this higher demand, many biopharmaceutical contract manufacturing organizations (“CMOs”) are adding new capacity. HighTech Business Decisions projects total biopharmaceutical contract production capacity to increase 15% over the next two years.

In HighTech Business Decisions’ recently published industry study “Biopharmaceutical Contract Manufacturing 2014: Improving Markets, Services, and Technologies,” CMOs expect the industry to grow at 10% per year over the next few years. The demand for production services using mammalian cell culture technology will grow at a faster pace than the overall industry growth rate. The increase in demand for outsource services will improve industry capacity utilization rates, which had been below optimal levels over the past few years.

William Downey, president of HighTech Business Decisions, explains, “We extensively interviewed 50 executives at pharmaceutical and biotechnology companies, as well as 23 respondents from contract manufacturing organizations worldwide. The pharmaceutical and biotechnology companies are increasing their spending for outsource biopharmaceutical manufacturing services. We see a trend towards greater use of CMOs by large pharmaceutical and biotechnology companies, which is having a positive effect on this market.”

Detailed analysis the biopharmaceutical contract manufacturing market and practices is documented in HighTech Business Decisions’ latest report. This 900-page report with 260 summary data tables and charts provides in-depth analysis of the dynamic factors affecting the biopharmaceutical contract manufacturing industry, including, product demand, batch and tank size requirements, CMO selection, new equipment purchases, changes in outsource spending, capacity forecasts, contract terms, and much more.

About HighTech Business Decisions

HighTech Business Decisions is a market research and consulting firm specializing in biopharmaceutical contract manufacturing. The company has been producing in-depth public reports and customized benchmarking, market analysis and customer loyalty programs for 18 years. Visit us at www.HighTechDecisions.com