Big bio/pharma would rather ‘make than buy,’ says PharmSource

Global and generic bio/pharmaceutical companies will continue to prefer in-house manufacturing to outsourcing for the most strategic elements of their businesses, according to PharmSource Information Services, Inc.

A premier leader in market intelligence for the global contract bio/pharma industry, PharmSource details its analysis in a just-issued trend report, Bio/Pharma CapEx Trends: Sponsor Spending on In-House Capacity Trounces Outsourcing.

Jim Miller, the founder and president of PharmSource, is the report’s lead author. He said that based on detailed research and analysis of the financial investments bio/pharma companies are making in their captive manufacturing capacity, it’s clear that companies would rather “make than buy.”

“Capital expenditure trends are an indicator of the industry’s propensity to outsource its manufacturing requirements,” he said. “Our analysis of recent spending indicates that global and generic bio/pharma companies are not likely to embrace contract manufacturing to any greater degree than they have in the past 10 years.”

In developing the report, PharmSource’s experts researched financial data for nearly 250 publicly traded companies, along with a data set of 84 announced manufacturing and R & D infrastructure investment projects. Miller said the data captures the bulk of industry capital spending and paints a representative picture of how companies are investing in facilities and equipment.

This PharmSource report complements its 2012 trend report, Are CMOs Losing the Make-versus-Buy Battle? It is considered required reading for CMO executives and strategic decision-makers who follow the global CMO industry, including dose and API manufacturers. 

PharmSource is the recognized authority of unbiased knowledge about the global bio/pharmaceutical contract services industry. The company’s proprietary publications, databases, research tools and analyses inform buyers and sellers of bio/pharma contract services about industry trends, activities and partnership opportunities. Since 1996, CMOs, CDMOs and CROs worldwide have looked to PharmSource for critical information delivered with timeliness and integrity. Learn more at www.pharmsource.com.