"Our expert analysis and our thinking on the issue that affect most in business"

Outsourcing in Pharmaceutical Industry

Outsourcing in Pharmaceutical Industry

What makes Outsourcing is the latest trend in the Pharma Industry?

Which is the fastest-growing segment or the “in thing” in pharmaceutical industry? It is nothing but CDMO- Contract Development and Manufacturing Organization; profoundly, it is known as outsourcing. Statistics prove that the sector is poised for sensational growth, evolution, and expansion. Obviously, this potential has received considerable attention from industry stalwarts.

What is outsourcing in pharmaceutical industry?

The primary drivers of the outsourcing sector are discovery, development of the product, characterization, clinical. Equally important are commercial production, supply chain and logistics, and regulatory support. In short, it is a robust cocktail of all business functions and marketing opportunities that drive the market valuation.

If you want to get updated information and guidance about the outsourcing opportunities in the pharmaceutical industry, then give a buzz to Dodder Engineering Consulting. It is a one-stop solution for all your needs.

Smaller the company, the more suitability it is for outsourcing!

Yes, there is a correlation between the size of the company and outsourcing. It is observed that small and medium-sized companies that have limited stakeholders and organizational barriers in decision-making have a more streamlined relationship with the outsourcing partner.

Large organizations have inherent structural complexities and there are many decision-makers and budget owners. They contribute to the procurement strategy, which is not aligned with the outsourcing activities.

The roadmap

What is outsourcing in pharmaceutical industry and what shape will it take in the coming decades? According to statistical analysis, the growth will be tremendous.  To satisfy the ever-increasing demands for outsourcing, the service providers continue to invest capital heavily. It is more evident in areas where there is a capacity bottleneck.

The biggest chunk of the outsourcing market is grabbed by commercial production. However, it is involved in all stages of the product development lifecycle.

Small outsourcing players are outperforming

Outsourcing has become an essential part of the development and manufacturing process in the pharmaceutical industry. Thus, the sector will perform with growth. Market penetration will increase further.

It has been observed that the biggest outsourcing players contribute less as compared to small players. The top ten companies hold 20 percent of the market share and the remaining 80 percent is outweighed by small companies.

What does it indicate? It indicates that there is tremendous scope for smaller companies in the coming decade. Since they have comparatively low barriers in the undifferentiated segments in the pharmaceutical industry, they can mark their presence.

M&A activity has considerably increased and touched record levels. Also, the competition for desirable assets has gone up. Large pharma companies are going to divest manufacturing assets so that they can reduce the manufacturing footprint.

Consultants like Dodder Engineering Consulting help their clients to assess the need for outsourcing.

Finally Say!

Pharmaceutical manufacturing process outsourcing has become a vital part of drug development and manufacturing. The sector is performing consistently better and it will penetrate further, and it will show an aggressive growth in the coming years. All forecasts and predictions talk positively about it. The outlook for 2021 seems to be positive.




"With our knowledge & tools, we can accomplish your goals"