Description
After decades of sustained growth and profitability, the pharmaceutical industry has been positioned as one of the few recession proof industries based on its performance through multiple economical cycles. In recent years, there have been visible strains in the pharmaceutical business. With a downturn in fortunes, many pharmaceutical companies are searching for business solutions to streamline operations and cut costs as they strive to continue generating above-average shareholder returns.
Outsourcing has become an integral, ongoing element of pharmaceutical companies’ business strategy. In the past year, Kalorama Information has conducted studies on pharmaceutical outsourcing in both the drug discovery and drug development phases. In this current study, we take a look at outsourcing even later in the drug life-cycle: contract manufacturing and contract marketing and sales.
The use of third parties to develop and manufacture drugs was confined to providing access to resources not available internally or to providing resources during peak times. Today, however, outsourcing manufacturing is a first-line decision. It is estimated that the U.S. market for outsourced pharmaceutical manufacturing is growing at the rate of 10 to 12% annually. Pharmaceutical companies will continue to fuel much of this growth as they outsource an increasing number of products and services. Biotechnology companies, which have almost doubled in number during the past five years, also contribute to this trend as they seek ways of bringing their products to market without making capital investments in their own manufacturing facilities. Biopharmaceutical manufacturing, a complex and expensive operation, is a major factor in this market. The use of outsourced expertise and capacity in biopharma was one of the major areas of study in this project.
Contract manufacturing can be categorized into three broad areas: biomanufacturing, primary, and secondary manufacturing. Biomanufacturing includes manufacturing of protein-based biopharmaceutical products. Process development in biomanufacturing is complex and involves expertise molecular biology, purification and advanced chemistry. Primary manufacturing involves the custom manufacturing of pharmaceutical ingredients. This sector includes fine chemicals, APIs, custom chemicals and intermediates. Secondary manufacturing, from the point of view of our report, is concentrated on sterile manufacturing, which produces sterile injectable drugs, and specific oral drugs, which require lyophilization.
Historically, pharmaceutical companies maintained their own sales and marketing divisions. However, pharmaceutical companies and especially smaller developers are increasingly turning to contract sales force organizations to provide the extra market muscle they need. The result has been a strong market for companies supplying these services. CSOs offer several benefits for clients. They allow companies to economically reach physicians they would not ordinarily be able to call on, providing additional sales coverage tailored to a specific need, whether it is territorial or market segment in nature. This is the first study to examine and analyze the market for contract sales.
Table of Contents
Chapter One: Executive Summary
- Challenges Facing the Pharmaceutical Industry
- Strategies to Address Challenges
- Contract Manufacturing
- Biopharmaceutical Manufacturing
- Contract Primary and Secondary Manufacturing
- Market Analysis: Contract Manufacturing
- Contract Sales & Marketing
- Market Analysis: Contract Sales and Marketing
Chapter Two: Meeting the Challenges of a Changing Marketplace
- Challenges Facing the Pharmaceutical Industry
- Meeting Investor Expectations
- Erosion of Blockbuster Sales
- Increased Generic Competition
- Pricing Pressures
- Pipelines Slowing Compared to ROI
- Strategies to Address Challenges
- Mergers and Acquisitions
- Strategic Outsourcing
- Restructuring Manufacturing Operations
- Reducing the Size of In-House Sales Force
Chapter Three: Contract Manufacturing
- Industry Overview
- Major Drivers of Contract Manufacturing
- Key Competing Factors for Contract Manufacturers
- Biopharmaceutical Manufacturing
- Characteristics of Biopharmaceutical Manufacturing
- Types of Contractors Involved in Biomanufacture
- Biopharmaceutical Manufacturing Demand Increasing
- Is There a Biomanufacturing Capacity Shortage?
- Alternative Methods of Producing Biopharmaceuticals
- Transgenic Products in Clinical Trials
- Contract Biopharmaceutical Manufacturing
- Major CMOs Expanding Operations to Manufacture Biologics
- Contract Primary And Secondary Manufacturing
- Contract Primary Manufacturing
- Outsourcing of Fine Chemicals Slowing
- Asian/Indian Threat
- Ramping up the Technology Toolbox to Gain a Competitive Edge
- Chiral Technologies
- Oligonucleotides and Peptides Capabilities
- Specialized Niches Offer Opportunity
- Exploring Other Growth Opportunities
- Contract Secondary Manufacturing
- Demand for Sterile Manufacturing Capabilities on Increase
- Business is Brisk for Contract Package Manufacturing
- Market Analysis: Contract Manufacturing
- Contract Primary Manufacturing
- Niche Markets Remain Stable
- Strategies to Maintain Profitability in a Sluggish Market
- Contract Primary Manufacturing Market and Forecast
- Contract Primary Manufacturing Market Share
- Contract Secondary Manufacturing
- Gaining Market Share Through Acquisitions and Collaborative Agreements
- Contract Secondary Manufacturing Market and Forecast
- Contract Secondary Manufacturing Market Share
- Contract Biomanufacturing
- Contract Biomanufacturing Market and Forecast
- Contract Biomanufacturing Market Share
Chapter Four
- Contract Sales & Marketing
- Contract Sales Organizations
- Government Regulations Regarding Sales and Marketing
- Drivers of Outsourcing Sales & Marketing
- Broad-based Portfolio of Marketing and Sales Services
- Maximize Efficiency of Sales and Marketing
- Speed and Flexibility
- Provide Sales Team to Companies with No In-House Sales/Marketing Expertise
- Selecting A CSO
- Services Offered by CSOs
- Integrated Sales Force Recruitment, Training and Management
- Implementation Services
- Technical Support Service
- Data Center Services
- Call Center Services
- Hardware Support Services
- Training and Educational Services
- Product, Sample and Literature Fulfillment
- Telemarketing
- Brand/Portfolio Analytics and Forecasting
- Strategic and Tactical Planning
- Strategic Consulting
- CSO Client Contracts
- Improving Sales Force Effectiveness Through Technology-Based Solutions
- E-detailing
- Virtual Live e-Detailing
- Scripted e-Detailing
- Physician Portal e-Detail
- Customer Relationship Management
- Mobile Technology
- Outsourcing CRM-Related Services
- Information Management
- Business Intelligence & Analytics
- Commercial Operations
- Market Analysis: Contract Sales and Marketing
- Industry Characteristics
- Market Environment
- CSO Market and Forecast
- CSO Market Share
- Strategies for Gaining Market Share
Chapter Five: Contract Manufacturing Company Profiles
- Albemarle Corporation
- History and Lines of Business
- Contract Manufacturing
- Financial Information
- Avecia, Inc.
- History and Lines of Business
- Contract Manufacturing Services
- GMP Manufacture
- Financial Information
- Bachem Holding Ag
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Baxter Pharmaceutical Solutions LLC
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Ben Venue Laboratories
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Bioreliance Corporation
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information:
- Biovectra DCL
- History and Lines of Business
- Contract Manufacturing Services
- Boehringer-Ingelheim
- History and Lines of Business
- Contract Manufacturing
- Financial Information
- Cambrex Corporation
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information:
- Cardinal Health Contract Manufacturing
- History and Lines of Business
- Contract Manufacturing and Packaging Services
- Financial Information:
- Chesapeake Biological Laboratories
- History and Lines of Business
- Contract Manufacturing Services
- DPT Laboratories, Ltd.
- History and Lines of Business
- Contract Manufacturing Services
- DSM Pharmaceuticals, Inc.
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Degussa AG
- History and Lines of Business
- Contract Manufacturing
- Financial Information
- Dowpharma
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Draxis Health, Inc.
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information:
- Genzyme Pharmaceuticals
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Girindus AG
- History and Lines of Business
- Contract Manufacturing Services
- Glatt Air Techniques, Inc.
- History and Lines of Business
- Contract Manufacturing Services
- HollisterStier Contract Manufacturing
- History and Lines of Business
- Contract Manufacturing Services
- Hospira One 2 One
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Laureate Pharma
- History and Lines of Business
- Contract Manufacturing Services
- Lonza Group Ltd
- History and Lines of Business
- Contract Manufacturing Services: Lonza Biologics
- Analytical Services
- Financial Information
- Lyne Laboratories
- History and Lines of Business
- Contract Manufacturing Services
- Mallinckrodt Pharmaceuticals
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Patheon, Inc
.
- History and Lines of Business
- Contract Manufacturing Services
- Financial Information
- Rhodia Pharma Solutions
- History and Lines of Business
- Contract Manufacturing
- Financial Information
- Wellspring Pharmaceutical
- History and Lines of Business
- Contract Manufacturing Services
Chapter Six: Contract Sales and Marketing Company Profiles
- Cardinal Health Contract Sales and Marketing
- History and Lines of Business
- Contract Sales and Marketing
- Financial Information
- Dendrite International, Inc.
- History and Lines of Business
- Contract Marketing and Sales Support Services
- Financial Information
- Innovex
- History and Lines of Business
- Contract Sales and Marketing Services
- Financial Information
- Medical Affairs, Marketing & Communications
- History and Lines of Business
- Contract Marketing and Market Research
- Late Phase Development Studies
- Pre-Launch and Post-Launch Services
- Meeting Management and Publication Services
- Financial Information
- OnCall
- History and Lines of Business
- Contract Sales Services
- Marketing Services
- PDI, Inc.
- History and Lines of Business
- Contract Sales and Marketing Services
- Financial Information
- Ventiv Health U.S.
- History and Lines of Business
- Contract Sales and Marketing Services
- Financial Information
Appendix A: Company Directory
List of Exhibits
Chapter One: Executive Summary
- Exhibit 1-1: Respondents’ Biopharmaceutical Manufacturing Operations
- Exhibit 1-2: Percent Companies Outsourcing at Least Some Manufacturing Production, 2003 And 2008, by System
- Exhibit 1-3: A Selection of CMOs Increasing Sterile Manufacturing Capacity Company, Location, Square Feet Added, and Investment
- Exhibit 1-4: Global Contract Manufacturing Market by Type Primary, Secondary, Biomanufacturing 2002-2010
- Exhibit 1-5: Global Contract Sales Organization Market 2000-2010
Chapter Three: Contract Manufacturing
- Exhibit 3-1: Manufacturing Operations Contracted byPharmaceutical and Biotechnology Companies
- Exhibit 3-2: Contract Manufacturing Subsidiaries of Pharmaceutical and Biotechnology Companies Competing in the Outsourcing Market
- Exhibit 3-3: Respondents’ Biopharmaceutical Manufacturing Operations
- Exhibit 3-4: Sales of Select Biopharmaceuticals on the Market
- Exhibit 3-5: Percent Companies Outsourcing at Least Some Manufacturing Production, 2003 and 2008, by Manufacturing System
- Exhibit 3-6: Selected CMOs Expanding Biomanufacturing Capacity, 2000-2004, Company, Location, Square Feet Added, and Investment
- Exhibit 3-7: Manufacturing Processes Developed for Top Ten Blockbuster Drugs by Indian Companies
- Exhibit 3-9: Global Contract Manufacturing Market by Type Primary, Secondary, Biomanufacturing 2002-2010
- Exhibit 3-10: Global Contract Primary Manufacturing Market 2000-2010
- Exhibit 3-11: Contract Primary Manufacturing Market Share 2003
- Exhibit 3-12: A Selection of CMOs Increasing Sterile Manufacturing Capacity Company, Location, Square Feet Added, and Investment
- Exhibit 3-13: Global Contract Secondary Manufacturing Market, 2000-2010
- Exhibit 3-14: Contract Secondary Manufacturing Market Share 2003
- Exhibit 3-15: Global Contract Biomanufacturing Market 2000-2010
- Exhibit 3-16: Contract Biomanufacturing Market Share 2003 by Leading Competitor
Chapter Four: Contract Sales & Marketing
- Exhibit 4-1: Return on Investment per Dollar Spent for the Top 14 Pharmaceutical Companies 1998-2001
- Exhibit 4-2: Key Contract Sales Organization Solutions to Maximize ROI
- Exhibit 4-3: Global Contract Sales Organization Market 2000-2010
- Exhibit 4-4: Contract Sales Organization Market Share by Leading Competitor 2003
