Global Markets for Contract Pharmaceutical Manufacturing, Research and Packaging: Focus on Europe

Report Highlights

• The global pharmaceutical contract manufacturing and contract research organizations revenue reached at $196.5 billion in 2010, it will further grow to $217.9 billion in 2011 and is projected to reach at $360.6 billion by 2016, increasing at a compound annual growth rate (CAGR) of 10.6%.
• The European contract manufacturing market for OTC and nutritional products was valued at about $46.0 billion in 2010 and is projected to reach approximately $51.3 in 2011 and it will further grow to $86.5 billion by 2016, at a compound annual growth rate (CAGR) of 11%.
• The contract research market revenue for Europe in 2009 was $5.8 billion, which reached $6.3 billion in 2010.  This market is expected to reach at $6.9 billion in 2011 and it will further grow to $10.5 billion by 2016, at a compound annual growth rate (CAGR) of 8.7%.

INTRODUCTION

STUDY OBJECTIVE

The objective of BCC Research in conducting this study is to provide an overview of the current situation and future capabilities of the global pharmaceutical contract manufacturing, research, and packaging markets.  The study provides a global as well as a regionally specific market overview.  The report emphasizes the current and future outlook of the pharmaceutical contract manufacturing market, with a comprehensive analysis of the overall pharmaceutical and biotechnology outsourcing industry. 

The current report discusses and outlines the current capabilities as well as the needs of the pharmaceutical contract manufacturing, research, and packaging markets.  In addition, it discusses company and market strategies to further enhance the market.  The report includes the different types of contract manufacturing and, more specifically, the services offered by global contract manufacturers, researchers, and packagers.  The report also discusses the methods best used to identify an effective contract manufacturer as well as the advantages of contract manufacturing and outsourcing.  The report highlights the need for project management, provides market forecasts for different aspects of contract manufacturing specific to each region, and examines the role of market leaders in the industry.  Regulatory requirements and new developments in the market are also discussed in the report.

The report encompasses the revenues gained from contract manufacturing in each specific market and in each specific region.  Sales analysis was performed on specific categories of drugs and dosage forms including API/bulk drugs and solid, liquid, and semisolid dosage forms.  Sales analyses were also performed on revenues gained from contract packaging and contract research.  The sales figures discussed are for the examined period of 2009 to 2011.  Sales figures were also forecast for the following 5-year period from 2011 through 2016.

Over-the-counter (OTC) drugs, nutritional drugs, and drug delivery products are discussed in a separate section of this report.

REASONS FOR DOING THIS STUDY

The majority of pharmaceutical companies are now using contract manufacturing, research, and packaging services.  To save costs and product development time while simultaneously being effective, efficient, and productive, pharmaceutical companies are relying on contract manufacturers to fulfill many basic as well as specialized competencies.  This study discusses the different types of contracting companies, their roles, and the share of the market they claim.  New developments and new technologies warrant the issuing of this report, which is an important resource for anyone analyzing the discussed markets.

Trends in outsourcing and new emerging markets for outsourcing are providing a new look to the market and greater options to pharmaceutical companies.  The industry is seeing an increase in outsourcing as contract manufacturers, researchers, and packagers provide cheaper options as well as region-specific suppliers.  The new state-of-the-art packaging facilities as well as expensive research facilities and capabilities of research organizations are enhancing the overall growth of the contract manufacturing industry.  Contract manufacturers are providing pharmaceutical companies with expertise in all forms that the companies do not have available in-house.

INTENDED AUDIENCE

This study examines the areas of market growth in pharmaceuticals contract manufacturing, research, and packaging from the point of view of manufacturers and users.  Strategic decision makers at biochemical and biotechnology companies, physicians, pharmaceuticals and biopharmaceuticals companies, and related research companies will find value in this study.  

SCOPE OF THE STUDY

The scope of this study encompasses the contract manufacturing, research, and packaging markets.  BCC analyzes each market and its applications for contract manufacturing by its need for outsourcing, regulatory environment, technology involved, market projections, and market share.  Technological issues include the latest trends and developments. 

METHODOLOGY

Both primary and secondary research methodologies were used in preparing this study.  BCC conducted a comprehensive literature search, which included technical newsletters and journals, and many other sources.  Data were collected through interviews and correspondence with various analytical, chemical, pharmaceutical, and contracting experts.  Market sizing estimates and projections were based on estimates such as the current number of end users, potential end users, mergers and acquisitions, and market trends.

INFORMATION SOURCES

Many companies within the industry were surveyed to obtain data for this study.  Included were manufacturers and end users of pharmaceuticals through contract manufacturing and research.  Data were gathered from various industry sources.  BCC spoke with officials and physicians within the industry, and consulted newsletters, company literature, product literature, and a host of technical articles, journals, indexes, and abstracts.  Exhaustive investigations of databases by key terminology were completed.  In addition, data were compiled from current financial, trade, and government sources.

ABOUT THE AUTHOR

The study has been carried out by a team of professionals in the biotechnology industry.  The project manager for this project is Shalini S. Dewan, who holds a master’s degree in pharmaceutical chemistry and has over 14 years of industry experience.  Among the research topics she has covered are studies on compounds of potential pharmaceutical interest from ibuprofen and 2-naphthyl acetic acid.  Shalini was awarded a Gold Medal by the Prime Minister of India for her work and has worked with top companies in India and in the U.S.  Some of her other reports with BCC are Reagents of Chromatography; Spectroscopy, an Enduring Market; Advanced Drug Delivery Systems; Orthopedic Drugs, Implants, and Devices; Imaging Reagents; Regulatory Industry; Dynamic Sera, Media, and Reagents Used in Biotechnology; Contract Pharmaceutical Manufacturing, Research, and Packaging; Chiral Technology: Global Markets; Autacoids, and Related Drugs; Contraceptives; Liver Disease Treatments: The Global Market; Hormone Replacement Therapies and Other Hormone Therapies: Global Markets; Cardiovascular Medicine: Diagnostics, Drugs, and Devices; Cancer Therapies: Technologies and Global Market; and Medical Imaging Reagents and Analysis Equipment.

The lead consultant for this project was Ms. Taruna Chhabra, who holds a bachelor’s degree in biology and is a member of the National Honor Society for Biological Sciences. 

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DISCLAIMER

The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or its use.