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Biopharma Outsourcing to Witness Phenomenal Growth over Next 10 Years

By ESOutlook

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In a span of next 10 years, Biopharma sector is expected to witness a rise in the outsourcing of API manufacturing. This estimation has come from the demand of API production for bio-similar resulting with their patent expiration, according to Mashael Zaidi from market research group Visiongain. He has estimated the worth of global contract biotech API manufacturing to be $4.01 billion for the present year, which is more than the value estimated in 2014, i.e. $3.72 billion. The demand for bio-outsourcing is expected to be generated by the US and EU, more specifically from the UK, Germany, France, Italy, and Spain, whereas India and China are expected to develop in the global market owing to the strict national regulations laid for them. The investments for emerging biological drug production markets such as Brazil, Russia, India, China, South Korea, and Singapore will continue to pour in from companies.

The mammalian cell culture is expected to remain a major factor in the projected growth for biopharma industry as it accounts for over half of the contract manufacturing organisation (CMO) revenues. And, it is expected to remain a major contributor to the bio-outsourcing deals for the next ten years as per the projections by Visiongain. The production of monoclonal antibody therapies directs the demand for mammalian cell demand. The growth of the existing biologic scenario will ensure that companies dependant on API manufacturers will ensure the production capability.

The growth of biotech CMOs will also depend on biologics, bio-similar development, orphan drug development, and next generation antibody therapies for the next ten years and will enable the global market to attain an annual growth rate of high single digit compound.

Big Pharma in the years ahead would be cutting the costs, and outsourcing would be a viable option to cut the cost of resources put in production and this lowered cost would also help the drug makers deal with the pricing pressures and make profits. Besides, the outsourcing scenario will also enable the small companies to gain expertise and to enter the global space, which is otherwise not so convenient. Biopharma sector also expects more strategic partnerships between CMOs and drug companies for capacity, technology, and expertise as to hold capacity and technology together for both is expensive. Thus, having an alliance with each other would minimise the risks involved such as overcapacity, explained an industry expert.

He also added, “Our analysis shows the biotech API manufacturing services market will achieve high revenue growth over the forecast period to 2025. Interest in that field grows, as it is cost-saving to outsource compared with building new facilities or investing in biotechnologies.”  

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