From its beginning in the early 90s, contract manufacturing is growing rapidly due to a internal shift for contract manufacturers, developing their focus on R&D rather than purely product fulfilment. Contract manufacturing refers to the outsourcing of product manufacturing to third parties to save on setup and inventory costs.
The rising costs in India and China gave new venues to European CMOs and as a result European pharmaceutical market is growing at a 9.15% CAGR from 2016. While Active Pharmaceutical Ingredients (API) will remain in demand, the final product will be the next in demand. The European pharmaceutical contract manufacturing is mainly dealing with solid and liquid dose formulation and injectable in the European countries such as Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Netherlands, Norway, Sweden, Switzerland and the United Kingdom.
While in Europe diseases such as diabetes, rheumatoid and arthritis were on the rise recently. The trend resulted in European governments cutting on budget costs. This move forced the European contract manufacturers (CMOs) moving to over-the-counter (OTC) products instead of facing the stringent drug regulations in Europe. Resultantly, the European CMOs have moved to nutraceutical and functional foods. This shift has given rise to new technologies required for delivering such products such as soft gels and stick packs.
The second-largest contract pharmaceutical contract manufacturing market in Europe is different from other regions for its business model. However, European countries are still ahead of the world in contract manufacturing with shifting its focus to generic drugs which are rapidly growing in Europe. On the technology fronts, European CMOs are far ahead of the world with the options to providing a diverse range of technologies such as automation and flexible manufacturing plants to accommodate the need of the clients in future. The adoption of automation such as robotics to avoid exposure of humans to high-potency drugs. Automation may also help increase productivity, reliability and consistency of the manufacturing facilities and ultimately the contract manufacturers.
Currently, the European CMOs are involved in manufacturing of biopharmaceutical products including sterile injectable. In Europe, around 20 to 30% of contract manufacturers are serving biopharmaceutical products to its clients. For the treatment of tumours, the manufacturing of cytotoxics will remain in the market despite new drugs for the treatment of cancer.
We have a list of top contract manufacturers in Europe for you;