Camelot PHARMA Management Radar on Contract Manufacturing Outsourcing (CMO)

  • Bi-annual survey among almost 100 executives from globally active pharmaceutical companies based in 16 countries and spread over four continents
  • Despite a positive assessment of the current business climate and an increasing number of products in the pipeline, the global pharmaceutical industry is continuously cutting costs using contract manufacturing organizations (CMOs)
  • By 2020, around one third of all European activities in API production, formulation and packaging will be outsourced – one third of surveyed companies plan to source more than half of their European sales volume from CMOs located outside of Europe
  • Outsourcing decisions have professionalized: More than 70 percent of respondents’ companies have formalized and standardized processes for make-or-buy decisions
  • CM Outsourcing is not considered beneficial for all products and areas: Experts see a clear decrease in effort for production and logistics, but an increase in administrative areas such as planning, legal or procurement

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