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news.Pharmaceutical, biotechnology, generic drug and contract manufacturing companies are increasingly seeking to outsource their manufacturing to contract manufacturing organizations (CMOs) to keep costs down, as many biologics command relatively high prices and require complex and expensive manufacturing processes, according to global management consulting firm Scientia Advisors.
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Scientia Advisors has released a review report titled ‘Assessing the Biopharmaceutical Market: Promises and Challenges.’ According to it the revenue growth for the small molecule drug segment has slowed and would begin to decline within three years as numerous blockbuster drugs go off patent and are replaced by less expensive generic substitutes.
Harry Glorikian, managing partner of Scientia Advisors, said: “With the market for biologic drugs growing much faster than that of drugs based on chemical compounds, pharmaceutical, biotechnology, generic drug and contract manufacturing companies are repositioning and forming new alliances in order to succeed in a rapidly changing landscape.”
“Numerous biologic therapies with total revenues of $37bn will have lost patent protection by 2017, promising considerable opportunity in biosimilars (government-approved new versions of branded biopharmaceutical products following patent expiration).
“As a result, pharmaceutical, generic drug, and contract manufacturing companies are joining forces to enter the biosimilars space. To be successful, they must take into account the considerable technical, competitive, and regulatory hurdles that will be involved.”