Corporate Banner
Satellite Banner
Biologics & Bioprocessing
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Bright Future Ahead for Biopharmaceutical Contract Manufacturing, Says Frost & Sullivan

Published: Tuesday, October 01, 2013
Last Updated: Tuesday, October 01, 2013
Bookmark and Share
New market insight uncovers the latest technology trends and strategic approaches for biopharma CMOs.

Considerable growth opportunities lie ahead for biopharmaceutical contract manufacturing organizations (CMOs).

With blockbuster biologics worth over $100 billion due to lose patent protection by 2019, the global biosimilars market is projected to grow at a robust compound annual growth rate (CAGR) of 60.4 percent between 2012 and 2019.

A new market insight from Frost & Sullivan, Biopharmaceutical Contract Manufacturing, finds advances in bioprocessing technologies, as well as innovation in biopharmaceuticals production with transgenic plants and animals, stem cells and cloning, are likely to have a direct impact on the market.

“Due to the steep cost and long time needed to build, equip and validate a biomanufacturing facility, the majority of biopharmaceutical companies prefer leveraging the expertise of CMOs,” notes Frost & Sullivan Healthcare Senior Research Analyst Aiswariya Chidambaram.

Chidambaram continued, “CMOs have made substantial investments in infrastructure, technology, and personnel in recent years, and are capable of providing uncomplicated, timely, and cost-effective services. They are also well versed with regulatory compliances and work closely with regulatory agencies, thereby reducing time-to-market.”

Disposable technology is a key biomanufacturing trend and presents attractive opportunities for minimizing production costs, owing to its customizable design, enhanced productivity, and significant operational benefits.

Disposable equipment and single use bioreactors are considered a viable alternative to conventional stainless steel equipment, due to their flexibility, short start-up time, quick changeover between production campaigns, and absence of Clean in Place, Steam in Place, and large volumes of Water for Injection.

Single use technologies are specially designed for multi-product contract manufacturing with additional benefits, such as simple transfer of operations between sites and their ability of being easily expandable for larger volumes.

Advances in upstream and downstream processing technologies will also impact the industry. With 20 percent of biotech manufacturing costs accounting for upstream processing activities, and 40 percent for downstream ones, most companies and CMOs are gearing up to adopt new technologies to optimize efficiency.

In 2011 the global industry witnessed a 6.2 percent budget increase for integrating new technologies in upstream processing. Reduction of quality variability in the product - impurities such as aggregates, glycosylation variants, and so forth - and cell viability will be the key focus areas of upstream processing in biomanufacturing.

Downstream processing technologies follow two different trends specific to mAbs and recombinant proteins, specifically in the purification processes. In the next five years, exploration of alternative purification methods will be crucial for CMOs.

Advances in lyophilization and increasing applications of process analytical technology (PAT) will also attract attention. Innovations such as automated loading processes into the dryer in place of manual loading contribute to minimizing human error and maximizing productivity.

Also, manufacturers increasingly prefer the implementation of PAT and standardization of their processes, rather than relying on the validation of finished products. Near infrared spectroscopy (NIR) is one of the latest technologies which provides potential real-time control of cells in fermentation, specifically in mammalian cell culture processes.

The significant enhancement of purity levels and product efficiency are expected to drive the demand for this novel technology throughout the forecast period.

Mammalian cell-based contract manufacturing is expected to sustain the industry’s future expansion. This segment currently constitutes nearly two thirds of the sales revenue of the global biopharmaceutical contract manufacturing market and is anticipated to grow as high as 65 percent over the next five years, at a significantly higher rate than microbial cell-based contract manufacturing segment.

Increasing adoption of the Large Molecules model by big pharma companies will also boost prospects. Of the top 15 pharmaceutical companies, nearly 80 percent are expected to experience a net growth in their biologics portfolio.

The big pharma shift to large molecules will likely be led by monoclonal antibodies (mAbs) and is projected to grow at a CAGR of 10.8 percent from 2012 to 2017.

Companies will also increasingly outsource crucial operations and will seek to adopt an integrated/risk-sharing business model. The aim is to provide a “one-stop-shop” option for the biopharmaceutical companies where they can exploit the resources and expertise of the CMOs to reap maximum benefits, while they concentrate on their core capabilities and R&D activities.

Industry consolidation in the form of mergers, acquisitions and strategic alliances between CMOs, biopharmaceutical companies and technology providers are likely to increase, so as to gain access to newer geographies, niche product segments, and latest technologies. Targeting the right market niches will be crucial for long-term sustenance.

“As biopharmaceutical companies continue to focus on improving efficiency and productivity at lower costs” concludes Chidambaram, “CMOs are required to achieve the same internally through better integration of services and remaining at the forefront of technology.”


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,500+ scientific posters on ePosters
  • More than 3,700+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Can Regenerative Medicine be the Cure for Cancer and Other Deadly Diseases?
Change in regulatory frameworks and standards are essential to expedite approval and release of innovative products.
Thursday, June 19, 2014
Next-Generation Therapeutics for Infectious Diseases Conquer the Global Spotlight
Resistance to current drugs spurs treatment innovation in influenza, respiratory syncytial virus, chlamydia and gonorrhea.
Thursday, March 27, 2014
Molecular Farming Fits Need for Fully Functional Protein Therapeutics and Low-Cost Vaccines
Technology gains momentum through collaborations and licensing deals.
Monday, June 24, 2013
Frost & Sullivan Predicts Growth for the European Vaccines Market
Technology innovation and increasing focus on new vaccine development are likely to revolutionize the vaccine industry from prophylactic to therapeutic vaccines.
Friday, February 01, 2013
Scientific News
Less May Be More in Slowing Cholera Epidemics
Mathematical model shows more cases may be prevented and more lives saved when using one dose of cholera vaccine instead of recommended two doses.
NIH Launches Human RSV Study
Study aims to understand infection in healthy adults to aid development of RSV medicines, vaccines.
Flu Remedies Help Combat E. coli Bacteria
Physiologists from the University of Zurich have now discovered why the intestinal bacterium Escherichia coli (E. coli) multiplies heavily and has an inflammatory effect.
'Fountain of Youth' Protein Points to Possible Human Health Benefit
Patients with higher blood levels of growth factor have lower risk of cardiovascular problems.
Lemon Juice and Human Norovirus
Citric acid may prevent the highly contagious norovirus from infecting humans, scientists discovered from the German Cancer Research Center.
Study Backs Flu Vaccinations for Elderly
Brown University researchers found vaccines well matched to the year’s flu strain significantly reduce deaths and hospitalizations compared to when the match is poor, suggesting that vaccination indeed makes a difference.
Inciting an Immune Attack on Cancer Cells
A new minimally invasive vaccine that combines cancer cells and immune-enhancing factors could be used clinically to launch a destructive attack on tumors.
Protein Found to Play a Key Role in Blocking Pathogen Survival
Calprotectin fends off microbial invaders by limiting access to iron, an important nutrient.
Major Advance Toward More Effective, Long-Lasting Flu Vaccine
Collaboration shows vaccine candidate can produce powerful ‘broadly neutralizing antibodies’ in animal models.
Immune System: Help for Killer Cells
A study from the University of Bonn may show the way to more effective vaccines.
SELECTBIO

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,700+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!