Strategic Analysis of Downstream Processing in Biopharmaceutical Production
Research Overview
Increased Demand for New Solutions Drives Biopharmaceuticals Market
Accounting for over forty percent of biopharmaceutical manufacturing costs,
downstream processing has been a long-standing market barrier. Low investment
due to a lack of interest by participants has resulted in a technology
bottleneck through a deficiency of specialized, high-throughput apparatus and
automation systems. Despite this setback, the biopharmaceuticals market is
expected to grow rapidly due to the lowering efficacy of existing drugs that is
increasing the demand for treatment of new diseases. To effectively exploit this
growing demand, industry focus is shifting towards technical specialization and
investments in automated systems. Innovative downstream processing technologies
are currently being developed to process new biopharmaceuticals.
Frost & Sullivanfs recent strategic analysis on downstream processing
in biopharmaceuticals production offers a comprehensive overview of downstream
processing technology dynamics and the market for contract manufacturing
organisations (CMOs).
CMOs Vital to Defeat High Cost of In-house Downstream Processing
As in-house downstream processing technologies are an expensive investment,
participants are outsourcing to CMOs. This is resulting in their gaining
prominence in the constantly evolving biopharmaceuticals market.
"Considered a key component of the biopharmaceuticals value chain, CMOs are
being used by biopharmaceuticals companies to source key intermediates and
active ingredients," says the analyst of this research. "The idea
behind this strategic move is to speed the development of new patented products
and decrease time-to-market while also providing the maximum cost efficiency and
highest possible level of innovation."
CMOs, mostly distributed across the United States, United Kingdom and
Germany, are currently investing heavily to develop their own facilities and
market leaders are offering integrated downstream processing solutions for
in-house use by major biopharmaceuticals companies.
Shift in R&D Focus Advantageous to the Global CMO Market
- A shift in R&D focus from upstream processing and drug discovery to
downstream processing ? which had earlier suffered from a lack of investment
and innovation ? is likely to benefit the world CMO market immensely.
"As the cost of installing or developing in-house downstream systems
and staying abreast of technology developments is an expensive proposition,
R&D and drug discovery firms are now outsourcing different stages of
manufacturing to CMOs. Those CMOs which invest in downstream processing
facilities are likely to benefit from this trend," says the analyst.
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