Global Contract Manufacturing Trends


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  • Japan is th best India the weakest
  • Global Contract Manufacturing Trends

    1. 1. Global Contract Manufacturing Trends Rhenu Bhuller GVP, Pharmaceuticals & Biotechnology Frost & Sullivan Pharma Contract Manufacturing, Singapore 25-26th October 2010
    2. 2. Agenda 2 3 4 5 1 Global Pharmaceutical Market Trends The Global CMO Market Drivers and Challenges Future Trends and Opportunities The Healthcare World is Changing
    3. 3. The Healthcare World is Changing
    4. 4. <ul><li>Cost Containment </li></ul><ul><li>Reimbursement changes </li></ul><ul><li>“ Pay for Performance” </li></ul><ul><li>Comparative effectiveness </li></ul>The Healthcare World is Changing <ul><li>National HC spend more than $100B </li></ul><ul><li>Expanding medical coverage – 500M rural population </li></ul><ul><li>$1B direct hospital investment by 2012 </li></ul><ul><li>Quality & service-related press focus </li></ul><ul><li>Patient “right to choose” in draft NHS charter </li></ul><ul><li>NHS quality charter </li></ul><ul><li>Quality accounts need to be published </li></ul>U.S. Reform China build-out U.K. <ul><li>Cost Challenge </li></ul><ul><li>Access Challenge </li></ul><ul><li>Quality Challenge </li></ul>
    5. 5. Demographics Drive Access Concerns Globally... <ul><li>China </li></ul><ul><li>1,300 Million population </li></ul><ul><li>3 Million hospital beds </li></ul><ul><li>2.2 beds/1000 people </li></ul><ul><li>1.4 doctors/1000 people </li></ul><ul><li>60,396 hospitals </li></ul><ul><li>Japan </li></ul><ul><li>127 Million population </li></ul><ul><li>1.8 Million hospital beds </li></ul><ul><li>9.9 beds/1000 people </li></ul><ul><li>2.7 doctors/1000 people </li></ul><ul><li>7,785 hospitals </li></ul><ul><li>India </li></ul><ul><li>1,100 Million population </li></ul><ul><li>0.8 Million hospital beds </li></ul><ul><li>0.7 hospital beds/1000 people </li></ul><ul><li>0.6 doctors/1000 people </li></ul><ul><li>13,896 hospital </li></ul><ul><li>Australia </li></ul><ul><li>27 million population </li></ul><ul><li>0.213 Million hospital beds </li></ul><ul><li>7.9 hospital beds / 1000 people </li></ul><ul><li>2.5 doctors/ 1000 people </li></ul><ul><li>1,317 hospitals </li></ul><ul><li>Korea </li></ul><ul><li>48 Million population </li></ul><ul><li>0.283 Million ho spital beds </li></ul><ul><li>5.5 hospitals beds/1000 people </li></ul><ul><li>1.7 doctors/1000 people </li></ul><ul><li>997 Hospital </li></ul><ul><li>Taiwan </li></ul><ul><li>23 Million population </li></ul><ul><li>0.136 Million hospital beds </li></ul><ul><li>5.9 beds per 1000 of the population </li></ul><ul><li>1.6 doctors /1000 people </li></ul><ul><li>556 hospitals </li></ul>Source: Frost & Sullivan
    6. 6. The Balance Between Young and Old Is Shifting <ul><li>In 2000, 10% (606 million) of the global population was aged 60+ </li></ul><ul><li>By 2050, this will be more than 21% (2 billion) </li></ul><ul><li>75% of those aged 60+ have one chronic condition - 50% have two or more chronic conditions </li></ul>
    7. 7. Global Pharmaceutical Market Trends
    8. 8. Global Pharmaceutical Market . . . A USD880 billion market in 2011 driven by emerging markets
    9. 9. However . . . pharmaceutical R&D productivity declines
    10. 10. The Global CMO Market
    11. 11. Outsourcing across the industry value chain
    12. 12. Pharmaceutical Contract Manufacturing Market Segmentation
    13. 13. Global Pharmaceutical Contract Manufacturing Markets expected to be a USD 40 billion market by 2014 US – stable, but reducing global share to 35% India – among fastest growing markets, exceeding 10% of global volumes by 2012
    14. 14. Global comparisons
    15. 15. Drivers and Challenges in CMO
    16. 16. Market drivers
    17. 17. Recessionary Environment Restraints CMO Expansion Plans to Meet Demand Risks Associated with Safety Issues Threaten Manufacturers Consolidation in Biopharmaceutical Industry Could Result in Cutbacks on Number of Service providers Increasing Competition from Emerging Regions Threatens US Share of CMOs Technology Developments Require Continuous Capital Expenditure from CMOs Market challenges Source: Frost & Sullivan.
    18. 18. CMO = cost, competency are key drivers
    19. 19. Future Trends & Opportunities
    20. 20. Emerging Trends
    21. 21. Emerging Opportunity Areas
    22. 22. Existing CMO business model
    23. 23. Emerging CMO Business Model
    24. 24. Partner of choice: The 3 C’s drive choice
    25. 25. Industry Best Practices 2 3 1 Conversion of brand awareness to brand preference Customer focused alignment of services Growth built on the strength of long standing relationships
    26. 26. Key Collaborations: India
    27. 27. Key M & A’s: India
    28. 28. Indian Contract Manufacturing Services Market: Drivers, Restraints and Challenges
    29. 29. [email_address] Thank you