Outsourcing Drug Manufacturing
The third part of a recent series from in-Pharma got me to thinking.
A world of outsourcing awaits – part III drug manufacturing:
The article basically states that there is over-capacity in the active pharmaceutical ingredients (API) mainly due to increasing capacity in India and China as well as a reduction in drug pipelines as well. I would add that there seems to be s shift from classical small molecules to either more involved new chemical entities (NCE’s) or biologics. Since biologics have much higher prices and better profit margins, more and more major pharmaceutical companies are expanding into biotech manly by acquisitions.
However, the area of final product (FP) or finish fill operations, seems to be going well with continued growth. Another area seeing growth are the so-called contract biomanunufacturing organizations (CMBOs). This area will be interesting to watch in the coming years and it may end up that these operations are more about growing to the point of being an attractive acquisition than in long term survival. I could be wrong, but that is what is currently looks like to me.
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