According to a recent report by Kalorama Information, the global pharmaceutical outsourcing of manufacturing is expected to exceed $26 billion by 2011.
Outsourcing of sales and marketing is also become popular among companies to offset R&D costs and decreased sales. It is expected to add another $5 billion to the manufacturing outsourcing market, pushing the total past $30 billion, the report says.
Companies are increasingly looking towards outsourcing for manufacturing for the state-of-the-art processes and production technologies available. Companies have been outsourcing marketing because they lack the expertise or the funds, the report notes.
“In the biopharmaceutical arena alone, when you consider that there are more than 250 clinical projects underway in the U.S. this year – a jump of 29 percent over last year – with 75 percent of the projects being in the Phase III and Phase II stages of development, it’s easy to see why the sheer number of biologics in the pipeline is creating this enormous market for outsourcing,” said Anne Anscomb, the report’s author.
Kalorama Information is a division of MarketResearch.com and supplies independent market research for the life sciences.