Biotechnology Companies Turn to Outsourcing and Partnerships Amid Stagnating Investment Funds

Strategic Insights -

As more than 1,300 biotechnology companies worldwide pursue their fortunes in the biopharmaceutical market, the majority are facing difficulties in building their own manufacturing facilities due to dwindling investment funds. Approximately 1,300 biotechnology companies are seeking to establish a presence in the biopharmaceutical market, but investment funds are decreasing, making it challenging for them to build their own facilities. Outsourcing and partnerships with large pharmaceutical companies are becoming increasingly essential for biotechnology companies. The trend of outsourcing is being driven by the need for high-quality good-manufacturing-practices (GMP) manufacturing capability, which can be accessed through partnerships with large pharmaceutical companies or by contracting with dedicated biopharmaceutical contract manufacturers.

Key Takeaways:

  • More than 1,300 biotechnology companies worldwide are seeking their fortune in the biopharmaceutical market.
  • Investment funds for biotechnology companies are decreasing, making it difficult for them to build their own manufacturing facilities.
  • Outsourcing is becoming an increasingly popular option for biotechnology companies, allowing them to maintain control and ownership of their products.
  • Approximately 20 contract manufacturers are currently operating, with more than half planning to expand services to meet growing demand.
  • Companies such as Celltech Biologics, Bio Science Contract Production Corp., Bio-Intermediar B.V., Goodwin Biotechnology, Baxter Biotech Group, and Alberta Research Group are expanding or planning to build new GMP manufacturing facilities.
  • Biotechnology companies such as Genzyme Corp., Immunex Corp., Repligen Corp., and Xoma Corp. are currently offering contract manufacturing services in their GMP facilities.
  • Dedicated biopharmaceutical contract manufacturers are planning for expansion, with six out of 20 companies interviewed planning to build new GMP manufacturing facilities.

Statistics:

  • 1,300+ biotechnology companies are seeking their fortune in the biopharmaceutical market.
  • 20 contract manufacturers are currently operating, with more than half planning to expand services.
  • 6 out of 20 companies interviewed are planning to build new GMP manufacturing facilities.
  • 54,000 square feet is the size of the new Bio Science Contract Production Corp. facility.
  • 76,000 square feet is the size of the new Celltech Biologics facility.
  • The U.S., Europe, and Canada are the target locations for expansion by biopharmaceutical contract manufacturers.

Sources:

  • BUSINESS WIRE, June 20, 1995
  • Technology Forecasters' study on the biopharmaceutical contract manufacturing industry.