In a new report, Visiongain says contract manufacturing in the pharma industry will hit $64 billion by 2016 and more than double in the next 10 years. The manufacturing of final dosage forms is expected to grow fastest (CAGR 8.7%) - though making APIs still constitutes more than 71% of the total market.
US companies currently enjoy a 42% masrket share of contract manufacturing business, but this is expected to change as India and China are increasingly, successfully competing in this segment. The Asia and Pacific region is expected to grow by 9.6% annually over the next 5 years compared to an overall market rate of 6.7%.
While these emerging regions are expected to grow more rapidly in the next 5-10 years, analysts also expect that costs of labor and raw materials will rise over time dampening the rate of future growth. Markets can be expected to level out to a greater degree as the industry establishes its global footprint. See Pharmalot.
Posted by Bruce Lehr Aug 23rd 2011.