Europe Pharmaceutical Contract Manufacturing Market - Growth, Trends, Covid-19 Impact, And Forecasts (2022 - 2027)

Europe Pharmaceutical Contract Manufacturing Market - Growth, Trends, Covid-19 Impact, And Forecasts (2022 - 2027)

Europe Pharmaceutical Contract Manufacturing Market is expected to grow at a CAGR of 5.71% in the forecast period (2021 - 2026). The companies in the upstream industry are undergoing restructuring so as to focus more on R & D and added to this; stringent regulations on the pharmaceutical industry are compelling the companies to outsource the manufacturing of the drugs. Due to the outbreak of Covid-19, Europe Pharmaceutical Contract Manufacturing with facilities in China will be inpacted significantly as the country is the epicenter of the crisis. The generic medicines imported from India will also fall short of demand as Europe is the worst affected area due to the virus.

Key Highlights

• Nearly 50 national universities offer life sciences and biomedical engineering programs within Germany. German regulatory bodies impose price cut measures, which cause slower growth in the solid dose formulation segment.
• The global economic downturn, the euro crisis, patent expiration, the Mediator drug scandal, and the recent generic drug crisis have, profoundly, affected the pharmaceutical industry in the region. The pricing pressure created by government regulations has pushed the pharmaceutical companies to outsource to the emerging markets.
• Pharmaceutical companies are going for less number of vendors to take volume advantage and at the same time reduce logistics costs. Despite the existing evidence regarding cost savings and competences that can be accrued, many companies are reluctant to give up that control.

Key Market TrendsIncreasing Outsourcing Volume by Pharmaceutical Companies and Rising Investment in R&D will Drive The Market Growth

• Majority of the players are acquiring allied injectable manufacturing companies, to increase their manufacturing capabilities. For instance, in June 2019, Lyophilization Services of New England acquired the manufacturing facility of a sterile injectables manufacturing company in León, Spain. The site acquisition, by LSNE, is likely to extend its reach into the European market.
• Foreign players are using acquisitions as a strategy to expand their geographical reach. For instance, Recipharm bought Sanofi’s inhalation contract business and plant in the United Kingdom, for USD 60 million. In late 2019, the company acquired Consort Medical, to extend its capabilities in sterile injectable and inhalation drugs.
• UK pharmaceutical industry is one of the country’s major engines of innovation and research. The industry is spending billions of dollars on R&D, and employing a vast number of people, for highly skilled R&D roles.

Western Europe will Drive the Growth in the Market for the Forecast Period

• Germany is, likely, to remain the largest contract manufacturing market in Western Europe, both in terms of capacity and market share. One of the factors attracting pharmaceutical manufacturers to outsource production to this region is highly skilled and specialized employees, which is vital for manufacturing Highly Potent APIs (HPAPIs).
• Drug prices in France are lower compared to those in other European countries, as the French government reimburses a major portion of drug costs. Due to favorable reimbursement policies and higher margins, the injectables segment is expected to record higher growth rates over other FDF manufacturing segments.
• In the United Kingdom, the substantial growth of injectables in the CMO market is the result of strong IP regulations and expertise in the market, while solid, semi-solid, and liquid dose formulations face competition from the emerging markets.
• According to EUROSTAT, the pharmaceutical industry is the high technology sector with the highest added-value per person employed, significantly higher than the average value for high-tech and manufacturing industries. The pharmaceutical industry is also the sector with the highest ratio of R&D investment to net sales.

Competitive Landscape

The connected logistics market is a bit consolidated and consists of few players. In terms of market share, top companies have the control over the market. Major players include Fareva Holdings SA, Recipharm AB, Boehringer Ingelheim Group, Aenova Group, Famar SA, Lonza Group, among others.

• July 2021 - Catalent launched its breakthrough cell line development technology, GPEx Lightning. The GPEx expression platform is deployed through a glutamine synthase (GS) knock-out Chinese hamster ovary (CHO) cell line system and includes a novel gene insertion technology that can shorten drug substance development by up to three months.
• July 2021 - Thermo Scientific launched a new series of inductively coupled plasma optical emission spectroscopy (ICP-OES) instruments for food and beverage, consumer safety, industrial, environmental and pharmaceutical laboratories.
• January 2021 - LSNE Contract Manufacturing expanded its vial filling and lyophilization capacities by adding a new automated aseptic fill line. The multi-product fill line served to increase capacity and flexibility for manufacturing high-value APIs to meet the demand in drug product manufacturing driven by the Covid-19 pandemic.
• March 2020 - Lonza Group launched a new TheraPEAK SfAAV medium, to enhance and accelerate the production of Adeno Associated Virus (AAV) in Spodoptera Fuigiperda (Sf9) insect cells. It is specifically designed to support the development of safe, scalable, life-saving gene therapies

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Fareva Holdings SA
Recipharm AB
Boehringer Ingelheim Group
Aenova Group
Famar SA
Lonza Group
Cenexi 
Laboratoires Thissen SA
Almac Group

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