Pharmaceutical Update: CMO market expanding within pharmaceutical industry

Oct. 1, 2016

The contract manufacturing organization (CMO) market has begun expanding services into early stage drug development, complex technology transfers and flexible capacity supply in order to create higher success in the market.

Growing CMO market changing to influence pharmaceutical industry

The contract manufacturing organization (CMO) market has begun expanding services into early stage drug development, complex technology transfers and flexible production capacity supply in order to create higher success in the market. This move should allow pharmaceutical companies greater optimization of manufacturing capacity. Growth opportunities for CMOs are available by:

  • Enhancing technical capabilities
  • Amending business models (including risk sharing)
  • Exploring early-stage production, virtual biotech and out-licensing
  • Manufacturing biologics and biosimilars and high-potency active pharmaceutical ingredients

Detracting from opportunities are breach of patent and IP information concerns, manufacturing control loss concerns and in-house manufacturing expansions.

Counterfeit pharmaceuticals on the rise globally

Grand View Research’s Pharmaceuticals and Food Anti-Counterfeiting Technologies Market Analysis points to a growing need for anti-counterfeiting devices as a result of increased global counterfeiting, especially in China which produces 70 percent of counterfeit customs seizures. Counterfeit pharmaceutical incidences have risen by 90 percent in the last decade. Studies by the World Health Organization estimate the cost of pharmaceutical counterfeiting at $75 billion as of 2010.

Open-SCS Group makes progress on serialization standards

The Open Serialization Communication Standard (Open-SCS) Group has made progress in its drafting of a core set of industry-wide serialization standards. Currently, the Open-SCS Group is creating communication specifications between Level 3 and Level 4 layers.

In partnership with the OPC Foundation, the group is comprised of vendors and global pharmaceutical manufacturers including Johnson & Johnson, Pfizer and Abbott. The end goal is to "develop an open source standard in the Packaging Serialization Global Name Registry and an associated set of subscription-based work products." The organization was developed last year, and the standard will be free to all when complete.

Rwandan pharmaceutical market damaged by material & utility shortages

A new survey commissioned by Rwanda’s National Industrial Research and Development Agency (NIRDA) titled “Research and Technology Assessment” found 46 percent of companies in the pharmaceutical and chemical industries report there are not enough raw materials available. Power and water outages are common in the country, substantially limiting production capacity. Availability of skilled labor is also a problem for businesses in the region, as 65 percent of companies reported difficulty finding qualified employees.

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