Pharma contract manufacturing revenues to reach $64.07 billion in 2016, says Visiongain

The global contract manufacturing sector will generate revenues of $64.07 billion in 2016, according to a new report for business information group Visiongain. Manufacturing of finished dosage forms will drive revenue growth, with the market expected to increase at a compound annual growth rate (CAGR) of 8.7% between 2010 and 2016. From 2011 to 2021, revenues for this industry will more than double, according to the study, titled Pharmaceutical Contract Manufacturing: World Market Outlook 2011-2021.

Active pharmaceutical ingredient (API) manufacturing remained the largest market sector in 2010, accounting for 71.1% of the total market. API manufacturers in India and China will achieve increasing demand for their services, Visiongain's market analysis shows. Demand for generic and highly potent APIs will drive growth in this market from 2011 to 2021.

Richard Lang, pharmaceutical industry analyst at Visiongain, said: "The global pharmaceutical contract manufacturing industry will benefit from a continued move to strategic outsourcing by the pharmaceutical industry. That industry will look more to long-term relationships with a few selected CMOs as the decade goes on. Becoming a full-service CMO or specializing in a niche area will best allow contract manufacturers to take advantage of these strategic partnerships."