Home | Welcome to Contract Pharma   
Last Updated Tuesday, September 30 2014
Print RSS Feed

Report States CMOs Should Ramp Up Marketing Efforts



Published November 21, 2013
Related Searches: Contract Manufacturing CMO Pharma Biopharma
Recent customer research from Frost & Sullivan's Competing in the Global Contract Manufacturing Market reports that the global contract manufacturing market is growing steadily with firms allocating as much as 4% of annual revenues for CMO services, with a likely markup to 11% in the next three years. On average, firms partner with six CMOs. However, overall satisfaction and likelihood of contract renewal is relatively low, at around 40 to 50% across all product types, according to the report. To minimize vendor switching, the research suggests CMOs should invest in marketing efforts through outlets such as tradeshows, conference booths, and recommendations from colleagues.
 
The research is based on a survey of 312 global decision-makers from pharma and biopharma firms, and reveals that of all parameters used in CMO agreements and selection, volume commitments ranks as the most important, followed by manufacturing capacity and site transfer capabilities. Survey respondents also indicated that overall quality, clean regulatory track record, and confidentiality/security were the primary factors considered when selecting a CMO.
 
"While packaging, logistics and clinical trial supply are the most prevalent services currently being outsourced, organizations are particularly keen to leverage CMOs' capabilities of outsourcing drug delivery technology services in the near future," said Frost & Sullivan customer research global director Tonya Fowler. "Thirty-seven percent of respondents also stated they were likely to partner with a CMO that functioned as an external consultant, mainly in cases where they required manufacturing consulting."
 
Based on the report, pharma and biopharma companies have shown a preference for CMOs operating in their region and those with improving geographic reach and expertise. However, they are unlikely to outsource R&D due to competitive intelligence concerns and CMOs' inability to hire key staff. The report goes on to state that, of the top 15 CMOs, Baxter BioPharma Solutions , Boehringer Ingelheim, and Pfizer CentreSouce have been identified as charging the highest premiums but also offering the most comprehensive range of services.
 
"It is important for CMOs to keep all these preferences and perceptions in mind to formulate robust strategies to effectively compete in the market and increase the level of satisfaction and loyalty among customers," added Ms. Fowler.


blog comments powered by Disqus
Receive free Contract Pharma Direct emails
Sign up now to receive the weekly newsletter, and more!

Enter your email address:
Follow Contract Pharma On