Cost Savings Still the Number One Reason Behind 60% of Outsourced Pharma and Bio Manufacturing

Cost Savings Still the Number One Reason Behind 60% of Outsourced Pharma and Bio Manufacturing
While there is normally more than one factor behind the decision of a pharmaceutical or biopharmaceutical organisation to outsource its global manufacturing, it seems the ever-important cost-saving potential remains among the main attraction
 
FOR IMMEDIATE RELEASE

PRLog (Press Release) - May 25, 2011 - The growth of global contract manufacturing

A recent Pharma IQ survey conducted with key members of the pharma and biopharma community revealed that, while 54.5 per cent of organisations outsource less than half of their global manufacturing, 18.2 per cent currently use outsourcing for at least 91 per cent of their output. These basic findings support a recent report by Global Industry Analysts (GIA), which predicted that the global pharmaceutical contract manufacturing market would reach a total value in excess of $40.7 billion (£24.4 billion) by 2015.

Why outsource global pharmaceutical production?
The analysts at GIA suggested that key factors driving such expansion included soaring demand for new drugs, increasing need for R&D productivity and efficiency, as well as the desire to make cost savings where possible. The report also noted the fact that many pharma and biotech companies simply lack sufficient manufacturing capabilities internally. In fact, the Pharma IQ research found that 70 per cent of organisations cite lack of internal capacity as the number one reason for outsourcing some or all of their production.

 

 

To access this report in full please click here: www.gpcmevent.com/media

 

Suggested Articles

Six pharmaceutical execs are set to head to Washington next week for pricing hearings at the House Committee on Oversight and Reform. 

After sifting through the data, one analyst figures the latest Opdivo-Keytruda showdown in kidney cancer might come down to commercial execution.

Biogen is giving former chief finance officer Jeff Capello a multimillion-dollar cash payment plus other severance benefits.