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Sample - Global Pharmaceutical Contract Manufacturing Market_Mordor Intelligence

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    GLOBAL

    Market Shares, Forecasts

    & Trends

    PH RM CEUTIC L 

    CONTR CT 

    M NUF CTURING M RKET 

    2015 - 2020

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    TABLE OF CONTENTS

    1. Introduction

    1.1 Research Methodology1.2 Key Findings

    2. Executive Summary

    3. Market Dynamics

    3.1 Market Overview

    3.2 Industry Value Chain Analysis

    3.3 Industry Attractiveness - Porter's 5 Force Analysis

    3.3.1 Bargaining Power of Suppliers

    3.3.2 Bargaining Power of Consumers

    3.3.3 Threat from new entrants

    3.3.4 Threat from substitute products

    3.3.5 Competitive rivalry within the industry

    3.4 Industry Policies

    3.5 Market Drivers

    3.5.1 Growing Innovative drugs

    3.5.2 Increasing investments in R&D

    3.6 Market Restraints

    3.6.1 In-house packaging

    3.6.2 Capacity Utilization Issues Affecting the Profitability of CMOs

    3.6.3 Increasing Lead Time & Logistics Costs

    3.7 Market Opportunities

    3.7.1 Huge Demand for Next-Generation Biological Therapies

    4. Pharmaceutical Contract Manufacturing Market Segmentation, Forecasts and Trends - by Type

    4.1 Active Pharmaceutical Ingredient (API) Manufacturing

    4.2 Finished Dosage Formulation (FDF) Development & Manufacturing

    4.2.1 Solid Dose Formulation

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    4.2.2 Liquid Dose/Semi-Solid Formulation

    4.2.3 Injectable Dose Formulation

    4.3 Secondary Market

    5. Pharmaceutical Contract Manufacturing Market Segmentation, Forecasts and Trends - by Region

    5.1 North America

    5.1.1 United States

    5.1.2 Canada

    5.2 Europe

    5.2.1 United Kingdom

    5.2.2 Germany5.2.3 France

    5.2.4 Italy

    5.2.5 Others

    5.3 Asia Pacific

    5.3.1 China

    5.3.2 India

    5.3.3 Japan

    5.3.4 Australia

    5.3.5 Others

    5.4 Latin America

    5.4.1 Brazil

    5.4.2 Mexico

    5.4.3 Argentina

    5.4.4 Others

    5.5 Middle East and Africa

    5.5.1 United Arab Emirates

    5.5.2 Saudi Arabia

    5.5.3 South Africa

    5.5.4 Nigeria

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    5.5.5 Others

    6. Global Vendor Market Share Analysis

    6.1 Pharmaceutical CMO Vendor Market Share

    6.2 API Outsourcing Vendor Market Share (Top 10 Market Players)

    7. Competitive Intelligence - Company Profiles

    7.1 Catalent

    7.2 Recipharm

    7.3 Jubilant

    7.4 Patheon

    7.5 Vetter7.6 Boehringer Ingelheim

    7.7 Pfizer CentreSource

    7.8 Aenova (Haupt)

    7.9 Famar

    7.10 Baxter Bio Pharma Solutions

    7.11 Lonza

    7.12 Biomeva

    7.13 Fareva

    8. Investment Analysis

    8.1 Recent Mergers and Acquisitions

    8.2 Investment Scenario and Opportunities

    9. Future of Pharmaceutical Contract Manufacturing Market

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    1.1 RESEARCH METHODOLOGY

    1.1.1 INTRODUCTION

    The research process adopted for this entire study is a highly structured two stage process: size

    estimation of the review period, and the market engineering for the forecast period of the global,

    country and segment-level data that lead to the Data Generation Process (DGP) for the studied

    variables. The size estimations were carried out through multiple bottom-up & top-down

    approaches. The bottom-up approach includes the examining of historical revenues of key players,

    studying the size of the applications, value and supply-chain analysis, end-user demand, which are

    then cross-validated by secondary and primary resources. The top-down approach is an astuteresearch process where the global market sizing is carried out through the secondary research,

    validated by primary industry experts.

    In this report, for analyzing the future

    trends for the studied market during the

    forecast period, we have incorporated

    rigorous statistical and econometric

    methods, further scrutinized by secondary,

    primary sources and by our in-house

    experts supported through our extensive

    data intelligence repository. The market is

    studied holistically from both demand and

    supply-side perspectives. This is carried outto analyze the end-user and producer

    behavior patterns in the review period that affect the price, demand and consumption trends. As the

    study demands analyzing the long-run nature of the market, the identification of factors influencing

    the market is based on the fundamentality of the market that is studied. Through secondary and

    primary research, the factors that are endogenous & exogenous in nature are identified, and they are

    transformed to quantitative data through data extraction and further applied for inferential purpose.

    MarketEngineering

    SecondaryResearch

    PrimaryResearch

    EconometricModelling

    Value-SupplyChain

    Analysis

    ExpertValidation

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    Study Structure

    Data Extraction Process

    Data Corroboration

    Analysis

    (Econometric ForecastModelling + Secondary

    Research + Expert)Verification)

    InferenceData Generation Process

    (DGP) and Forecasts

    Info-graphical andComprehensive

    Presentation of Inferencesand Estimates

    Technology /

    Market

    Identification

    Market Definition Segmentation

    Key Countries /

    Regions

    Mapping of Key

    Players

    Value / Supply

    Chain Analysis

    Identification of

    Exogenous

    Factors

    Recent Market

    Developments

    / Competitive

    Landscaping

    Validation of Market

    Size Estimates

    Consumer

    Behaviour Analysis

    Market Dynamics

    Market Structure

    Anal sis

    Top-Down

    A roach

    Bottom-Up

    Approach

    Segment

    and Region-

    wise MarketSize

    Forecasting

    Market Share

    Market StructureCompany

    Profiles

    Porter’s Five

    Forces Analysis

    Competitive

    LandscapeMarket Sizing

    1.1.2 RESEARCH DESIGN

    Sample | Global Pharmaceutical Contract Manufacturing Market Mordor Intelligence

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    1.1.3 STUDY TIMELINE

    Research Phase 1st Week 2nd Week 3rd Week 4th Week 5th Week

    Technology / Product / Market

    Identification

    Internal Expert-Assessment and

    Approval of the Study Content

    Secondary Research

    Discussion Guide

    Primary Surveys

    Econometric Modelling

    Expert Validation

    Report Writing

    1.1.4 STUDY PHASES

    1.1.4.1 SECONDARY RESEARCH

    The first phase of the research process was an extensive secondary research and identification of

    the related intelligence from our data repository on the study market. Secondary data was compiledfrom various database such as industry bodies, associations, journals, company annual reports,

    white papers and research publications by recognized industry experts, paid data sources and other

    published literature. Data regarding the business plans and strategies of the companies were

    derived from the recent annual/investor reports of key industry players for qualitative comparisons

    and analysis; financial data of these companies sourced primarily from Industry Association & Stock

    Exchange Filings to maintain a standard benchmark.

    SecondaryResearch

    PrimaryResearch

    DiscussionGuide

    EconometricModelling

    ExpertValidation

    DataTriangulation

    ReportWriting

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    1.1.4.2 DISCUSSION GUIDE

    The next phase was preparing an exhaustive discussion guide. The primary purpose of this phase is

    for extracting qualitative information regarding the market from key industry leaders. Information

    collated from the discussions was further carried out for quantitative analysis. This document helps

    in identifying the major market segments, market factors such as drivers, restraints, challenges, key

    economic factors, interaction between the players, supply-value chain structure, bottom-up and top-

    down nature of the market, competitive landscape, recent long-run and short-run strategic

    developments, and market shares of the key players. This guide aids in deciding the scope and

    deliverables of the study in terms of the requirement of the market. 

    1.1.4.3 MARKET ENGINNERING AND ECONOMETRIC MODELLING

    The next phase was market engineering, which involved analysing the collected data, market

    breakdown and forecasting. Macro and micro economic indicators, which were exogenous and

    endogenous in nature were identified through causal and correlation analysis. They were further

    analyzed with the study variable for deriving the statistical inferences on the study market. A

    structural forecast model was developed in the process and the most statistically reliable model

    was considered for the forecasting purpose. Such attained data points were verified by the process

    of data triangulation which includes expert opinions and primary sources, to validate the numbers

    and arrive at close estimates. Following data validation, the analysts begin to write the report. They

    garner insights from data and forecasts, which were then drawn to visualize the entire ecosystem in

    a single report.

    1.1.4.4 EXPERT VALIDATION

    The final phase before the report writing was the expert validation, where, the estimated and

    projected values through data triangulation were cross-validated through market experts or the key

    industry people. They were senior researchers, consultants, Directors, CFOs, and CEOs. The cross-

    validated estimates were finally approved by the in-house experts

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    3. MARKET OVERVIEW

    3.1 OVERVIEW

    Contract manufacturing refers to outsourcing of certain production activities to third party

    vendors, wherein pharmaceutical companies give the chemical formula of the drug to be

    manufactured to the pharmaceutical contract manufacturers.

    The market for contract manufacturing in pharmaceutical sector is one the fastest growing

    markets. It is estimated that, the market will present significant opportunities in the next few

    years. Contract manufacturing market is witnessing high growth as the pharmaceutical

    companies are focusing more on R&D of the drugs, instead of manufacturing the formulated

    drug to stay competitive in the market.

    Most of the revenues of outsourcing market come from contract manufacturing, because of

    its widespread adoption and increasing popularity. There has been an increase in pressure

    on pharmaceutical manufacturers to cut down manufacturing cost of their products. Under

    this scenario, contract manufacturing turns out to be a strategic option. Contractmanufacturing can offer benefits, such as better product quality, cost reduction, and

    reduced in time to market.

    The global pharmaceutical contract manufacturing market was valued at $58 billion in 2014

    and is projected to reach $84 billion in 2020, at a compound annual growth rate of 6.4% over

    the forecasted period. The companies in the upstream industry are undergoing restructuring

    in order to focus more on R&D. On the other hand, stringent regulations on thepharmaceutical industry are compelling the companies to outsource drug manufacturing to

    contract manufacturers and focus on their core business processes.

    This kind of manufacturing technique also helps companies to focus more on marketing

    activities and R&D by minimising the efforts and time being invested in manufacturing

    process. The market is quite consolidated with big players having major share. Some of the

    trend that are estimated to exert positive influence onto the market are patent expiration of

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    major therapeutic brands, growing demand for generic drugs, and adoption of novel

    manufacturing technologies.

    Solid dose formulation, by type of dose formulation, constituted more than XX% of the

    overall pharmaceutical contract manufacturing market in 2014. This is attributed to lower

    cost of manufacturing, patent compliance, and ease of maintenance. The segment is

    expected to grow at a CAGR of 3.66% over the forecast period, while injectable dose

    segment will register highest CAGR of XX.XX% over the next five years.

    In 2014, the U.S. was the major market for pharmaceutical contract manufacturing,

    while India is estimated to be the fastest growing market, owing to its cost competitivenessand quality manufacturing capabilities. Pharmaceutical companies are opting for less

    number of vendors to take volume advantage and at the same time, reduce logistics costs.

    They are increasingly relying on contract manufacturing, research, and packaging services

    to fulfill their basic needs and specialized competencies. Companies are striving to minimize

    costs and reduce the product development time, without affecting their efficiency and

    productivity.

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    Competitive Rivalry between ExistingPlayers

    Sustainable competitive advantage throughinnovation

    Competition between online and offlinecompanies

    Level of advertising expensePowerful competitive strategy

    Firm concentration ratio

    Degree of transparency

    Threat of New Entrants

    Government policy

    Capital requirements

    Economies of scale

    Economies of product differences

    Product differentiation

    Switching costs or sunk costs

    Access to distribution

    Industry profitability (Market CAGR)

    Bargaining power of Buyers

    Buyer concentration to firm concentratratio

    Degree of dependency upon existing chof distribution

    Bargaining leverage, particularly in induwith high fixed costs

    Buyer switching costs relative to firmswitching costs

    Buyer information availability

    Force down prices

    Availability of existing substitute produ

    Threat of Substitutes

    Buyer propensity to substitute

    Relative price performance of substitute

    Buyer switching costs

    Perceived level of product differentiation

    Number of substitute products available in themarket

    Quality depreciation

    Availability of close substitute

    Bargaining Power of Suppliers

    Supplier switching costs relative to firmswitching costs

    Degree of differentiation of inputs

    Impact of inputs on cost or differentiation

    Presence of substitute inputs

    Strength of distribution channel

    Supplier concentration to firm concentrationratio

    3.3 PORTERS FIVE FORCE ANALYSIS

    PORTER’S FIVE FORCES FRAMEWORK (MODEL SAMPLE) 

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    Porter’s Five Forces model studies the five identified competitive forces that shape every

    industry & every market to determine the intensity of competition, and hence the profitability

    & attractiveness of the industry. The objective of growth strategy should be to adapt to

    these competitive forces in a way that improves the position of the organization. This study

    includes an exhaustive Porter’s Five Forces framework incorporating the factors influencing

    each force to analyse the market from a microeconomic perspective.

    In the study, the Porter’s five forces is analyzed considering the factors influencing   each

    force and quantifying the factors through primaries and quantitative analysis. The quantified

    factors are further mapped to derive the impact of each force on competitive dynamics.

    0

    2

    4

    6

    8

    10Government policy

    Capital requirements

    Economies of scale

    Economies of product

    differences

    Product differentiation

    Switching costs or

    sunk costs

    Access to distribution

    Industry profitability

    (Market CAGR)

    *Threat of New Entrants: The analysis for this force is carried out by considering several influencing

    factors such as government policy, capital requirements, economies of scale, economies of product

    differences, product differentiation, switching costs, sunk costs, access to distribution and industry

    profitability. Following the quantification and rating of each factor, the data is scrutinized to derive the

    impact of the force on the market dynamics on a scale of low-high-medium.

    *Sample Example

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    3.5 MARKET DRIVERS

    3.5.1 GROWING INNOVATIVE DRUGS

    Pharmaceutical companies are focusing on R&D to bring in innovative and advanced drugs

    into the market and thus, are outsourcing the manufacturing to third party vendors. Over the

    past few years, the industry was mainly focused on growth models that are focused on

    launching a cheap generic version of brand innovator drug by pharmaceutical

    manufacturers. It is estimated that, the industry should focus on innovation and emerging

    markets. Companies are investing heavily on innovation as the fund flow into

    pharmaceutical sector is increasing because of growth in other sectors.

    US Food & Drug Administration’s Centre for Drug Administration and Research (CDER) has

    approved 41 novel new drugs in 2014. In the last decade, CDER has approved an average of

    25 new drugs an year. The numbers in 2014 is more than the average number approved

    annually compared to last decade.

    Number of Innovative Drug Approvals (2005-2014)

    Source: US Food and Drug Administration

    There are close to 5,000 new medicines alone in the US pharmaceutical market that is

    currently in development stage, which is more than in any other country in the world. The US

    market is producing chemically derived drugs because of extensive R&D and clinical trials in

    2022

    18

    2426

    21

    30

    39

    27

    41

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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    both humans and animals. The innovator relies on patents and other forms of intellectual

    property rights to justify the investment required for bringing a product in the market.

    Several large multinationals produce the majority of innovative pharmaceuticals globally,

    but they have come to rely more heavily on research performed by industry partners,

    including smaller, innovative manufacturers.

    3.6 MARKET RESTRAINTS

    3.6.2 CAPACITY UTILIZATION ISSUES AFFECTING THE PROFITABILITY OF CMOS

    Capacity constraints are still a problem in the pharmaceutical industry, and almost six in tenbio manufacturers are facing minor constraints at some stage of manufacturing. Capacity

    utilization information is important for planners and investors, as they determine whether

    capacity will be available for the production of pipeline drugs that may be reaching approval.

    The bio-pharma segment tends to aggressively avoid unanticipated high production

    demands that can create a capacity crunch. But, CMO appears to be less afflicted by

    significant constraint issues than bio-therapeutic developers. Because of higher demand,

    CMO capacity utilization rates have increased drastically, due to higher production levels,

    and steps that CMO’s have taken to balance supply with demand.

    CMOs express less overall capacity constraint concerns compared to product developers, as

    they are not contracted by clients to assume tasks requiring manufacturing capacity beyond

    what they can deliver. One significant factor has been improved efficiencies at the CMOs

    that cannot be matched as rapidly with most developers. This is being witnessed both inupstream, and downstream operations, and is partly due to the larger number and variety of

    products being manufactured by CMOs. Improvements in bioprocessing generally occur first

    at CMOs. One such instance of efficiency in upstream operations being implemented at

    CMOs is the increased usage of single-use bioreactors. Instead of three days to turn around

    a bioreactor, the time has been reduced to a day. By eliminating time-consuming cleaning

    and validation it can provide more runs per year. This has an immediate effect on capacity

    utilization.

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    3.7 MARKET OPPORTUNITIES

    3.7.1 HUGE DEMAND FOR NEXT GENERATION BIOLOGICAL THERAPIES

    The initiation of regulatory procedures for entry of Biosimilars in the US market has created

    a significant deal of opportunity in the CMO industry. The organizations in the European

    union as well as the US are expecting a 15% rise in the demand due to biosimilars projects

    during various development phases. In 2014, Novartis’ Sandoz occupied the first biosimilar

    position in the US, when biosimilar drug of Amgen’s Filgastrim has been approved by FDA.

    Even though there are hindrances for the biosimilar CMO success based on the value chain,

    the CMOs involving in the same are seeing lucrative opportunities towards the future.Comparatively, first biosimilar in European union started with monoclonal antibody (mAb), a

    Johnson & Johnson’s Remicade version and product by Celltrion and Hospira. The accepted

    biosimilars llike biologics for treating growth hormones and treatment for chronic diseases

    were significant among them. The companies in Europe such as Sandoz, Stada, Hospira and

    Teva are dominating the biosimilar acceptance with almost 70% of the approvals. Based on

    the varying differences between drug product supply and drug substance, only 10% are

    utilizing the CMOs for Active Pharmaceutical Ingredient (API), whereas about 30% are using

    the CMOs for fill and finish.

    There exist certain products that are losing patent rights during the forecast period

    including monoclonal antibodies and proteins used in the treatment of chronic diseases and

    cancer. Most of these products in clinical development are distributes among the global

    biopharma giants, medium sized companies and emerging competition. Biosimilars are alsoraising the hopes for the injectable CMOs, thereby augmenting the expectations of the

    industry. The strategy of the CMOs towards the end of the forecast period is to develop a

    plan to build expression technologies that provides a scope to deliver APIs on time as well

    as to strengthen their analytical abilities. The demand for the biosimilars will create a

    competitive environment in the CMO industry and stall the CMOs exiting the market due to

    various constraints. 

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    4. PHARMACEUTICAL CONTRACT MANUFACTURING MARKET

    SEGMENTATION, FORECASTS, AND TRENDS - BY TYPE

    Pharmaceutical Contract Manufacturing Market Forecast (2014-2020) – By Type – 

    $ Billion

    Type 2014 2015 2016 2017 2018 2019 2020 CAGR%

    Active Pharmaceutical

    Ingredient (API)

    XX XX XX XX XX XX XX XX.XX%

    Final Dosage Formulation

    (FDF)

    XX XX XX XX XX XX XX 8.20%

    Secondary XX XX XX XX XX XX XX XX.XX%

    Total 58.00 XX XX XX XX XX XX 6.37%

    Source: Mordor Intelligence Analysis

    4.1 ACTIVE PHARMACEUTICAL INGREDIENT (API) MANUFACTURING

    The rise in the demand for abbreviated new drug applications (ANDA) and rise in filing drug

    master files (DMF) from Indian companies have fuelled the growth of API market. Most of

    the companies in this industry are increasingly focusing on the development of biological

    APIs, which is driving the API market. General prescription drugs have the major share in API

    ingredients when compared to OTC drugs.

    The market for Active Pharmaceutical Ingredient (API) was valued at $XX billion in 2014, and

    is estimated to reach $XX billion by the end of 2020, at a projected CAGR of XX.XX% during

    the forecast period. API was accounted for a market share of XX% of the pharmaceutical

    CMO market in 2014.

    Other factors driving the growth of API market includes stringent government initiatives in

    healthcare sector, innovation in biologics and high potency API, and rise in the incidence of

    cancer and age-related diseases. However, strict European regulatory policies might hinder

    the growth in API market. Captive manufacturers are currently leading the API market;

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    however, it is slowly losing the market share to contract manufacturers towards the end of

    forecast period. This is due to the complex and expensive in-house manufacturing of API

    and rise in competition from emerging players in this industry.

    North America is dominating the API market due to its wide reach in R&D including

    therapies and drugs. High growth in this region is attributed to increasing demand for

    biologics and specialty drugs, increasing government focus on generic drugs, and

    technological developments. The Asia-Pacific region is estimated to grow at the highest rate

    and is expected to be the most lucrative market during the forecast period. The availability

    of generic manufacturers is significantly driving growth in this region. Additionally,

    increasing incidence of cancer and increasing number of contract manufacturing

    organizations are also driving growth in this region. The major trend in this market is

    development of High-Potency API (HPAPI), which is influenced by the innovation in

    oncology, clinical pharmacology, and rise in demand for hormonal therapeutics.

    Active Pharmaceutical Ingredient Market Forecast (2014-2020) – $ billion

    Source: Mordor Intelligence Analysis

    2014 2015 2016 2017 2018 2019 2020

    SAMPLE FIGURE

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    5. PHARMACEUTICAL CONTRACT MANUFACTURING MARKET

    SEGMENTATION, FORECASTS AND TRENDS - BY REGION

    One of the significant changes outsourcing space has undergone is the evolution of

    strategic contract manufacturing. Traditionally, the contract manufacturing involved a

    vendor–customer equation. However, recently this traditional concept is being phased out,

    and contract manufacturers are forming alliance with drug formulating companies for

    greater profit margins. CMOs have become the primary choice for pharmaceutical

    companies, attributing to intensive capital requirement and complexity of manufacturing.

    Biopharmaceutical manufacturing is turning out to be a huge opportunity for CMOs.

    Especially in developed markets such as North America and Europe, CMO is growing at

    almost twice the growth rate of the pharmaceutical industry. One major setback for CMO

    industry is the conversion of contract manufacturing capacity to captive/in-house capacity.

    This can occur due to either the acquisition of facilities and companies, or just by a

    company no longer offering their additional capacity to the contract market. Even though

    these acquisitions have marginal impact, acquisitions such as Pfizer’s acquisition of Hospira

    could be disruptive. Large global companies outsource only about 1/3 rd of their production

    to CMOs, and with additional investments to expand the facilities, CMOs globally are going

    to face a challenge.

    The global market for pharmaceutical CMO was valued at $58 billion in 2014 and is

    estimated to reach $84 billion by 2020, growing at a CAGR of 6.37%. In 2014, North America

    held the major share of the market with a share of XX%, followed by XX and XX with sharesof XX% and XX% respectively. In terms of growth, Asia Pacific is estimated to witness the

    highest growth, due to the presence of emerging markets such as China, India and Japan.

    The region is projected to grow at a CAGR of XX% over the forecast period 2014-2020,

    followed by XX and XX.

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    Global Pharmaceutical CMO Market - Forecast ($ billions)

    Pharmaceutical CMO Market Share by Region (2014 

    Source: Mordor Intelligence

    2014 2015 2016 2017 2018 2019 2020

    North America Europe APAC Latin America Middle East & Africa

    SAMPLE FIGURE

    North America

    Europe

    APAC

    Latin America

    Middle East & Africa

    SAMPLE FIGURE

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    7. COMPANY PROFILES

    7.4 PATHEON

    7.4.1 COMPANY OVERVIEW

    Founded in 1974, Patheon Inc. is a pharmaceutical company, with its corporate head offices

    in Durham, North Carolina with 4,000 employees. Patheon is a contract development and

    manufacturing services providing products for pharmaceutical companies. Patheon

    competitors in the contract manufacturing include Baxter and cardinal health, which are

    based in USA.

    Patheon is transforming the way pharmaceuticals are made with a simplified, end-to-end

    supply chain solution for pharmaceutical and biopharmaceutical companies of all sizes.

    Drug substances and drug products, Development and manufacturing, Small and large

    molecules, Sterile, oral solid and softgel dosage forms are the services offered. Patheon

    offers a comprehensive range of services spanning all phases and scales that is wider and

    deeper than that of any other CDMO.

    Patheon gives even the smallest pharma and biotech companies’ instant access to a fully

    integrated global network of facilities across North America, Europe, Asia and Australia. This

    includes eleven for commercial-scale finished dosage forms, four for API process

    development and manufacturing, four for biologics, and ten for pharmaceutical

    development.

    7.4.2 PRODUCT & SERVICES

    Products Description

    Oral Solids With more than 40 years of experience and a remarkable range of

    conventional and specialized oral solid dose form options, the company offers

    to expand options with innovative combinations of these forms and a variety

    of controlled-release technologies. All these choices are executed with the

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    expansive scientific resources and expertise to rapidly develop successful

    formulations for even the most complex APIs including highly potent

    compounds and controlled substances.

    Steriles The company offers extensive sterile pharmaceutical product development

    capabilities, including world-class expertise in lyophilization. With Patheon

    there is access to state-of-the-art commercial-scale GMP manufacturing for

    prefilled syringes and cartridges. Ready-to-use dosage forms enable self

    administration of parenterals that once required a clinical visit. As the

    healthcare industry seeks to move treatments into the home, Patheon is

    investing in capabilities that will keep you ahead in the evolving marketplace.

    Softgels Most patients, especially children and seniors, prefer softgels. With Patheon,

    there is access to a broad palette of shapes, sizes and colors, as well as

    unique chewable, topical and suppository options.

    7.4.3 COMPANY FINANCIALS (IN US$ MILLION)

    Year Total revenue Gross profit Operating income

    2013 1023.1 249.1 33.9

    2012 749.1 159.3 36.9

    7.4.4 RECENT DEVELOPMENTS

    Date Recent development

    September

    2015

    Patheon unveiled its new brand identity, reflecting the company’s leadership

    position in the pharmaceutical services industry, and the difference it makes in

    the lives of patients. The new brand positioning centers around an updated

    brand promise based on the fundamental belief that the world would be a

    healthier place if tomorrow’s medicines were made available today. 

    July 2015 Ardian Acquires Exclusive Synthesis (ES) And Maleic Anhydride Intermediates

    & Specialties (IM) Business From DPx Holdings B.V.

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    July 2015 LIVIA Group, a German-based industrial holding, has entered into an

    agreement to acquire the Capua manufacturing facility and associated

    employees from Patheon, a leading global provider of outsourced contract

    development and manufacturing (CDMO) services for the pharma and

    biopharma industries.

    March

    2014

    Patheon has merged with royal DSMs pharmaceutical products business to

    form DPx in a $2.65bn (€1.9bn) deal.

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