Use of CMOs in Europe Forecasted to Sharply Increase

Conditions are ripe for an expanded use of CMOs in Europe, according to a Frost & Sullivan report recently highlighted in Pharmaceutical Technology. As blockbuster drugs come off patent manufacturing plant utilization rates are expected to decrease by half. Frost & Sullivan predicts that pharma and biotech companies will focus on strengthening core competencies, which leads to more outsourcing and the increased use of CMOs in the manufacturing mix.

The report forecasts “The European pharmaceutical contract manufacturing market could earn revenues of up to $20.75 billion in 2018, almost double that of 2011’s revenue when the market earned $10.02 billion. Over the same period, the European market for biotechnology outsourcing is forecast to grow from $1.21 billion to $2.67 billion.”

Interestingly the article notes that CMOs themselves run the risk of overbuilding manufacturing capacity as they grow to meet new demand. 

-- Geri Studebaker