Rising interest of Big Pharma creates huge growth potential for outsourcing firms, says Frost & Sullivan

Increasingly, big pharma is viewing the outsourcing of pharmaceutical manufacturing as a strategic move that would enable them to focus on their core competencies such as R&D. At the same time, the patent expiry of key blockbuster drugs worth $45 billion and biologics worth $30 billion is expected to reduce the capacity utilization rates of their manufacturing facilities, thereby making outsourcing a viable option for pharmaceutical and biotech companies.

New analysis from Frost & Sullivan, titled European Pharmaceutical and Biotech Contract Manufacturing Markets, finds that the European pharmaceutical contract manufacturing market earned revenues of $10.02 billion in 2011 and estimates this to reach $20.75 billion in 2018. Over the same period, the European biotech contract manufacturing market is set to expand from $1.21 billion to an estimated $2.67 billion.

CMO use synonymous with cost-cutting