The global contract manufacturing organisations (CMO) market has been forecast to increase at a compound annual growth rate (CAGR) of 11% over the next five years, increasing from a valuation of $26 billion in 2010, to hit a market value of $59.9 billion by 2018.
The global market for pharmaceutical contract manufacturing witnessed robust growth in recent years, and the future continues to hold tremendous prospects for the industry.
A contract manufacturing organisation is an organisation that serves the pharmaceutical industry and provides clients with comprehensive services from drug development through manufacture.
Services offered by CMOs include, but are not limited to: pre-formulation, formulation development, stability studies, method development, pre-clinical and Phase I clinical trial materials, late-stage clinical trial materials, formal stability, scale-up, registration batches and commercial production.
Outsourcing to a CMO allows the pharmaceutical client to expand its technical resources without increased overhead. The client can then manage its internal resources and costs by focusing on core competencies and high-value projects while reducing or not adding infrastructure or technical staff.
The US represents the largest region within the contract manufacturing market, closely followed by Europe.
However, future growth in the market is expected to emanate from developing regions, such as Asia-Pacific. The Japanese contract manufacturing market alone is projected to register a CAGR of 12.8% through to 2015.
Contract manufacturing in India and China is forecast to expand at a CAGR of 20% through to 2011. Big Pharma are increasingly outsourcing manufacturing to low cost destinations due to cost and margin pressures, and India and China offer skilled manpower and a robust manufacturing infrastructure.
For more information on the contract manufacturing organisations market, see the latest research: Contract Manufacturing Organisations Market
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