Outsourcing: Biologics Manufacturing: The CMO Advantage - The biologics CMO market—especially in mammalian cell culture—is still relatively undeveloped and represents a significant opportu

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Outsourcing: Biologics Manufacturing: The CMO Advantage
The biologics CMO market—especially in mammalian cell culture—is still relatively undeveloped and represents a significant opportunity.


BioPharm International
Volume 20, Issue 2

CONCLUSION

As this analysis shows, contract manufacturing organizations (CMOs) can play an important role in the biotech industry and can help create a potentially valuable investment. Based on our research, the CMO market is relatively undeveloped, especially in mammalian cell technologies, and represents a significant opportunity. However, sizable capital requirements and long set-up times for a manufacturing plant to begin operations often create barriers to entering this market.

However, we believe that a company with significant financial clout, an appetite and ability to take on risk, and the reputation and ability to recruit top talent, can be well positioned to lead the biologics CMO market. With adequate scale and superior operations, such a company could very well dominate the CMO market and potentially realize high economic returns.

Jayant Lakshmikanthan is a senior consultant at Deloitte Consulting LLP, 415.783.5288,

REFERENCES

1. Ransohoff TC, Mittendorff II RE, Levine HL. Forecasting industrywide capacity requirements. In: Advances in Large-Scale Biopharmaceutical Manufacturing and Scale-Up Production. Washington, DC: ASM Press and the Institute for Science and Technology Management; 2004 Oct.

2. Business Insights. The biogeneric market outlook: an analysis of market dynamics, growth drivers and leading players. Rockville, MD:Business Insights; 2005.

3. Tulsi B. Bugs punch the clock as next protein manufacturers. Drug Discov Devel. 2004 Jun.

4. Citigroup report. Lonza Group AG. London: Citigroup: 2005 Sept.

5. CIBC World Markets Biotechnology Coverage Universe, 2005.

6. Malik A, Pinkus G, Sheffer S. BioPharma: capacity crunch. McKinsey Quarterly, 2002 Aug 17;#2 special edition: Risk and Resilience.


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