Published Date : Feb 19, 2016
Hoping to achieve improved efficiency in capacity, time to market, quality, and cost, a number of pharmaceutical and medical companies have been outsourcing manufacturing operations to third party contract manufacturers. This trend of outsourcing also enables companies to gain expertise in specific business areas they might not be specialized in or services that are not available in-house. The demand for outsourcing certain operations is also spurred by cost benefits, the need to focus on one’s core capabilities, the increase in cost pressure, and the growing focus on marketing and research and development. By reducing the time spent on manufacturing operations, companies can focus solely on its core competencies. As a result, the global contract manufacturing market has been exhibiting remarkable potential. This market is fueled by the growth of the medical device industry, the rise in regulatory concerns, and the surging demand from emerging countries.
Lucrative Growth Opportunities for Medical Device Contract Manufacturing
The global health care contract manufacturing organization market offers a host of services such as medical device contract manufacturing and pharmaceutical contract manufacturing. The segment of pharmaceutical contract manufacturing comprises manufacturing of active pharmaceutical ingredients, manufacturing of final dose formulations, and packaging. Among these, final dose formulation manufacturing is anticipated to witness the strongest growth in the coming years.
The manufacturing of pharmaceutical ingredients holds immense opportunities for growth owing to the impending expiration of patent of leading drugs. This has propelled manufacturers of generic drugs to the front of the pharmaceutical industry. The demand for generic drugs, as a result, is projected to rise substantially over the next few years, leading to a surge in research and development investments from life science companies. The market for health care contract manufacturing organizations is anticipated to gain impetus by 2019, expanding at a healthy 14.30 per cent compound annual growth rate.