PharmSource - Bio/Pharma CapEx Trends: Sponsor Spending on In-House Capacity Trounces Outsourcing

Investment in captive manufacturing capacity by bio/pharma companies is an indicator of the industry’s intentions with respect to outsourcing. Based on recent capital expenditure trends, it’s clear that bio/pharma companies would rather “make than buy.”

According to the latest PharmSource Trend Report, Bio/Pharma CapEx Trends: Sponsor Spending on In-House Capacity Trounces Outsourcing, bio/pharma companies invested $118 billion in facilities and equipment during the 2010-2013 period, an amount at least 10 times greater than what CMOs have invested in themselves. Global and generic bio/pharma companies, in particular, have invested heavily in new capacity, especially for biopharmaceuticals and in emerging markets.

Reasons to buy

Bio/Pharma CapEx Trends: Sponsor Spending on In-House Capacity Trounces Outsourcing analyzes recent trends in capital spending by bio/pharmaceutical companies and assesses the implications for the CMO industry. It tracks spending by major segments of the bio/pharma industry, with detailed information on investments by global and generic biopharma companies. It discusses the outlook for the next five years, analyzes why major bio/pharma companies continue to favor captive capacity and describes the continuing role of CMOs in the bio/pharma supply chain.

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