Tuesday, July 9, 2013

White Paper: Challenging Outlook for Contract Manufacturers

We're excited to announce a new content partnership!  We're teaming up with Datamonitor Healthcare to bring you their latest research and insights into the clinical trials field!

Venture Capital Spending on Biotech
When it comes to contract manufacturers in the clinical field, ten companies account for one third of the total business in the industry while the remaining tends to be typically accounted for by small to midsized firms.  It is predicted that this sector will continue to grow as Pharma companies look to save money in-house and cut their fixed costs.  With this being the case, competition is rising and the lack of barriers to entry in the market mean more companies are getting into the contract manufacturing market.

In today's featured white paper, another very interesting point that author and analysis George Green brings up is the shifting trends of the capitol injected into the market by venture capitalists.  After suffering from a steep setback in 2008, venture capitalists have only just started in re-investing in biotechs.  Green also notes that the money is going to proven biotechs and those who have established products.  As investments are growing, so is the investment in the research and development which is driving clinical supply and process development demand.

Read the complete white paper Challenging Outlook for Contract Manufacturers, download it here.

What this industry hasn't seen, Greene points out, is a string of mergers and acquisitions, much like the rest of the industry.  Do you see this as a factor that will come up in the next few years?

1 comment:

John Decker said...

This is an interesting article. I did not know there were not that many small firms in the contract manufacturing industry. Since it is an important part of chemical distribution, it sort of makes sense that big companies run the show. I have been trying to learn more about certain products that companies package and formulate. I noticed that Custom Polymer is one that a lot of people work on.