New Delhi, Nov 26
Contract manufacturing revenues in the pharmaceutical finished dose sector witnessed a significant slowdown over the past financial year, according to a report on Tuesday.
Pharmaceutical contract manufacturing is when a company hires a third-party to produce drugs for them.
The report by GlobalData, a data and analytics company, showed that challenging market conditions, driven by drug pricing pressures, regulatory shifts, and geopolitical tensions, have reshaped the landscape.
This offers both hurdles and opportunities for contract manufacturing organizations (CMOs) to adapt and innovate amidst global generic shortages, reveals the report. It showed that the slowdown marks a sharp contrast to the rapid growth seen in 2020-22.
“Many commercial dose manufacturers have experienced low growth, with difficult business conditions generated by drug pricing and reimbursement constraints, the Inflation Reduction Act of 2022, and geopolitical conflicts. Despite the ongoing challenges in the geopolitical landscape, inflation is declining, and biotech funding is showing signs of recovery, giving hope for higher growth in future years,” said Adam Bradbury, Pharma Analyst at GlobalData.