25 September 2009 20:13 [Source: ICIS news]
By Feliza Mirasol
NEW YORK (ICIS news)--Strong demand for biotechnology-derived drugs, or biopharmaceuticals, will drive growth and competition in the contract biologics manufacturing arena, industry consultants said on Friday.
“The revenues from biotechnology drugs continue to grow and are expected to pass 10% of the total worldwide pharmaceutical market. The increase in demand for biologics continues to drive the industry for contract manufacturing services,” said William Downey, president of US consulting firm HighTech Business Decisions (HTBD).
The demand for biopharmaceutical contract manufacturing services is expected to grow at a compound annual growth rate of 16% over the next five years to $5.4bn (€3.7bn) from $2.6bn in 2009, according to HTBD.
Growth is driven by a shift in biopharmaceutical business models toward more outsourcing of production requirements and the fact that some large pharma companies are choosing not to expand their internal capacities, Downey said.
Two key parameters driving future demand for biomanufacturing capacity at contract manufacturing organisations (CMOs) and elsewhere are process yields - which continue to increase industry-wide - as well as approval and market penetration rates for potential blockbusters, according to Patti Seymour, senior consultant at US-based BioProcess Technology Consultants (BPTC).
“Actual future industry-wide capacity utilisation will depend heavily on these two parameters,” Seymour said.
“We forecast industry-wide utilisation of mammalian bioreactor capacity [captive plus contractor] to grow from our estimate of just under 50% utilisation of existing capacity in 2007 to approximately 73% of the approximately 4m litres of installed capacity expected to be on line by 2013,” she said.
BPTC projects an increase in total biologics capacity from 2.3m litres in 2008 to just over 4m litres by 2013, Seymour added.
Major contract biologics manufacturers include Switzerland’s Lonza, Netherlands-based DSM, France’s Groupe Novasep and Germany’s Wacker and Boehringer Ingelheim.
($1 = €0.68)
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