Europe Pharmaceutical Contract Manufacturing Market Size

Europe Pharmaceutical Contract Manufacturing Market Analysis

Europe Pharmaceutical Contract Manufacturing Market is expected to grow at a CAGR of 5.71% in the forecast period. The companies in the upstream industry are undergoing restructuring to focus more on R & D. Additionally, stringent regulations on the pharmaceutical industry are compelling the companies to outsource the manufacturing of the drugs.

• Nearly 50 national universities offer life sciences and biomedical engineering programs within Germany. German regulatory bodies impose price-cut measures, which cause slower growth in the solid dose formulation segment. Moreover, companies that are well-established locally try to tap into the global share by increasing their production pipeline, and the effective way to do that is by outsourcing their manufacturing operations, thereby boosting the CMO market in the country.
• The global economic downturn, the Euro crisis, patent expiration, the Mediator drug scandal, and the recent generic drug crisis have profoundly affected the pharmaceutical industry in the country. The pricing pressure created by government regulations has pushed pharmaceutical companies to outsource to emerging markets.
• Pharmaceutical companies are going for fewer vendors to take volume advantage and, at the same time, reduce logistics costs. Despite the evidence regarding cost savings and competencies that can be accrued, many companies are reluctant to give up that control.
• Stringent regulatory requirements can hinder the growth of the market. The EU regulations mandate all pharmaceutical manufacturers to comply with the EU Good Manufacturing Practices (GMP) if they want to supply products to the EU. Then manufacturers and importers must be authorized and registered by a competent authority from a member state. The manufacturers and importers are regularly inspected by an EU competent authority or other approved authority to check compliance with the EU GMP.
• This process applies wherever the manufacturer is located. The importer ensures compliance with the GMP when a separate company imports products. The EU legislation governing pharmaceutical products is compiled in the publication 'The Rules Governing Medicinal Products in the European Union.
• Due to the outbreak of Covid-19, Europe Pharmaceutical Contract Manufacturing with facilities in China was impacted significantly as the country was the epicenter of the crisis. The generic medicines imported from India also fell short of demand as Europe was the worst affected area due to the virus.