The CMO Market Outlook: Emerging markets, key players and future trends

Falling productivity and patent expiries are placing increasing pressure on pharmaceutical companies to reduce fixed costs, including large manufacturing facilities. Sponsors are turning to contract manufacturing organizations (CMOs) in search of time and cost savings, and as a way to flexibly manage outsourced manufacturing.

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The contract manufacturing market was worth $22.2 billion in 2009 and will reach $33.7 billion by 2014. Biopharmaceutical manufacturing is the fastest growing industry segment.

Sale of captive facilities, cost pressures, the rising number of products in development and the growth of the biopharmaceuticals industry are all driving the CMO market.

Strategic outsourcing often entails establishing longer and deeper relationships with a limited number of providers. Many sponsors are selling their own facilities in order to reduce fixed costs.

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