Biopharmaceutical contract manufacturing market expected to rise 10.6 percent

A new report has predicted that the biopharmaceutical contract manufacturing market will grow at a compound annual growth rate (CAGR) of 10.6 percent. Future Market Insights (FMI), who compiled the report, say that the market will see this significant growth in the forecast period from 2017 to 2027.

The report also says that the North American biopharmaceutical contract manufacturing market is expected to expand at a CAGR of close to 10 percent. It is projected to remain as the main sink market for revenues.

The study highlights Europe as continuing to remain as the main source market for biopharmaceutical contract manufacturing services. Potential margins for biopharmaceutical contract manufacturing companies are better in Europe as compared to the US, says the report.

However, FMI found that the increasing demand and availability of large sterile spaces required for biopharmaceutical contract manufacturing in countries such as China means that the biopharmaceutical manufacturing industry will have significant growth in Asia.

The report states that globally, biopharma companies have spent over US$50 billion in the past five years on new plants and equipment.

According to the report, biopharmaceutical contract manufacturing organisations are finding strong opportunities within biosimilar and biologics manufacturing. Rising focus on cost-effective biopharmaceutical contract manufacturing and the popularity of biosimilars along with the existence of patent cliff of blockbuster biologic drugs is expected to boost the growth of the biopharmaceutical contract manufacturing market.

Biopharmaceutical companies reducing operating costs by outsourcing R&D and commercialisation of biologic drugs to biopharmaceutical contract manufacturing companies could also encourage the growth of the biopharmaceutical contract manufacturing market during the forecast period, claims the report.