Contract Manufacturing is in great demand globally; especially in the pharmaceuticals & biotech sector. It involves outsourcing the manufacturing of certain pharmaceutical products that are required in higher demand. Also the pandemic has led to the growing global demand for certain medical aid to tackle COVID-19. Therefore, several countries like India, China and others are targeted to outsource manufacturing.

Pharmaceutical Contract Manufacturing

Based on the competition in the market not to forget the increasing global demands and cost, many pharma companies prefer to outsource manufacturing. Because, along with just manufacturing, the outsource centres also handle core functionalities for manufacturing for their respective companies at the global level. These include activities like research, innovation, development, branding and marketing.

Trends & Factors

The demand for biologics, generics and biosimilars are believe to increase over the next few years. It is estimated that CAGR for biologics is believed to increase by 9.1% in the year 2023. The CAGR for biosimilars like amoxicillin and potassium that are manufactured highly in India, are believed to increase by 40% in 2023.

But, due to the complex requirements for manufacturing along with having a capital intensive nature of business, many companies won’t be able to supply the growing demand. Thus, pharma businesses continue to depend on CMO (Contract Manufacturing Organization) since they provide an agile approach of manufacturing; right from primary packaging, testing, cartriding, assembling to secondary packaging. A similar approach is followed for both commercial pharma products as well as clinical products. Therefore to streamline the global supply chain and timely meet the global market expectations, relying on CMOs will continue.

Manufacturing Cost Reduction

Every medicine & drug company requires a huge sum to setup a production plant, manpower, engineers, etc. Larger the size of the company larger is the cost spend on setup & to manufacture the products. This increases the chances of such companies to outsource since contract manufacturing saves the cost over them. It enables them to invest into outsourced based manufacturing at a quite low cost.

Offering a wide range of pharma drugs, biosimilars, generics, medical devices, etc. pharmaceutical contract manufacturing in India is known to provide a low cost manufacturing with quality assurance. This also stands as one of the reasons why the pharmacy industry continue to rely on CMO in the long run.

According to Outsourced Pharmaceutical Manufacturing White Paper Results, 2020 Healthcare – Nearly 80% of all pharma products are outsourced for manufacturing globally and 20% of newly approved drugs & medicines are outsourced.

Meeting Quality Standard

Being into the pharmacy sector, it is important to maintain quality standards for every medical products & devices being manufacturing under its brand name. Despite the high demand for pharma drugs, medicines & products globally, companies don’t have to settle for a low quality standard. The pharma manufacturer in India or other countries that offer contract manufacturing have the ability to provide supreme quality of products that matches the global demands.

Reference

https://resultshealthcare.com/wp-content/uploads/2019/11/Outsourced-Pharmaceutical-Manufacturing-2020-White-Paper_Results-Healthcare.pdf

https://kemwellbiopharma.blogspot.com/2018/12/why-pharmaceutical-industry-will.html

https://www.epmmagazine.com/opinion/q-a-west-pharmaceuticals-the-essentials-of-contract-manufact/#:~:text=Due%20to%20the%20capital%2Dintensive,for%20commercial%20and%20clinical%20production

2 Replies to “Why the Pharmaceutical Industry Will Continue to Rely On Contract Manufacturing”

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