BioPharm International - February 2020

BioPharm-Outsourcing eBook

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Page 2 of 29 February 2020 BioPharm International eBook 3 Growth in Biologics Market Inspires Outsourcing CDMOs and CMOs will continue to invest in biopharmaceutical services and facilities as the bio/pharmaceutical industry looks to biosimilars and personalized medicine. B iologics, including cell and gene therapies, have continued their upward trend in the pharmaceutical industry in the past few years. Pharma companies are investing in these therapies, and FDA has been encour- aging the development of generic versions of already established biologics (1). Biologics, however, are costly to develop and manufacture, causing a variety of pharmaceutical companies to turn to contract devel- opment and manufacturing organizations (CDMOs). In response to this demand, CDMOs are continuing to invest in biopharmaceutical services and manufactur- ing facilities. "The industry is investing in an increasing number of API biologics (cell, gene, vaccine, and virus therapies), although this still accounts for a low proportion of CapEx [capital expenditure] projects in the period 2019–2025 (7%). The use of cell and gene therapies in the market is not well established, and the required manufacturing costs and level of expertise are high. CapEx projects involving API chemical or commercial solid-dose man- ufacturing as a percentage of total CapEx has decreased between the period 2016–2018 and 2019–2025," says GlobalData Analyst Adam Bradbury. Shiva Khalafpour, vice-president, head of Commercial Ma m ma l ia n a nd M ic robia l D eve lopme nt a nd Seventyfour - SUSAN HAIGNEY Partnerships for Outsourcing Cover Story

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