HighTech Report Shows Rising Demand for Bio-CMO Services

The biopharma contract manufacturing market has grown at a compound annual rate approaching 10% during the past three years, according to HighTech Business Decisions forecasts, and the market will reach $2.8 billion this year. In response to this higher demand, many CMOs are adding new capacity. HighTech Business Decisions projects total biopharma contract production capacity to increase 15% during the next two years.
 
In the recently published industry study, “Biopharmaceutical Contract Manufacturing 2014: Improving Markets, Services, and Technologies,” CMOs expect the industry to grow at 10% per year over the next few years, with even greater demand for production services using mammalian cell culture technology. This increase in demand for outsourcing services will improve capacity utilization rates, which has been below optimal levels the past few years.
 
William Downey, president of HighTech Business Decisions, said, “We extensively interviewed 50 executives at pharmaceutical and biotechnology companies, as well as 23 respondents from contract manufacturing organizations worldwide. The pharmaceutical and biotechnology companies are increasing their spending for outsource biopharmaceutical manufacturing services. We see a trend towards greater use of CMOs by large pharmaceutical and biotechnology companies, which is having a positive effect on this market.”