Entry of Biopharmaceuticals and Specialized Processes such as Lyophilization Drives Market Expansion

The pharmaceutical contract manufacturing market is moving beyond providing traditional services, and is focusing on tapping the large demand for specialized niche technologies. CMOs have been building state-of-the-art facilities that rival those of pharmaceutical companies and are constantly upgrading them to enable novel manufacturing processes. The anticipated influx of biopharmaceuticals, especially oncology products and sterile injectables, is likely to create huge opportunities for specialized manufacturing technologies that are not available with pharmaceutical and biopharmaceutical companies. Lyophilization is another process that is in huge demand in the biopharmaceuticals segment, as it requires a high degree of automation.

Pharmaceutical companies are increasingly adopting the concept of ‘virtual pharma’, wherein they retain the marketing rights while outsourcing all manufacturing activities and related processes. This allows companies to deliver goods to the market at a faster rate than an internal plant would allow. "With CMOs offering development services, outsourcing offers pharmaceutical companies a better value proposition while ensuring growth," says the analyst of this research service. "The emergence of ‘virtual pharma’ as a successful, risk-sharing business model in comparison to the present big pharma, ‘blockbuster’ model is likely to be a major driver for the pharmaceutical contract manufacturing markets."