GLOBAL PHARMACEUTICAL CONTRACTING REVENUE TO REACH $361 BILLION IN 2016 Wellesley, Mass.

In a recent release, CONTRACT PHARMACEUTICAL MANUFACTURING, RESEARCH AND PACKAGING: GLOBAL MARKETS (PHM043D) from BCC Research (www.bccresearch.com), global pharmaceutical contracting revenues totaled nearly $218 billion in 2011 and are expected to reach nearly $361 billion in 2016, increasing at a compound annual growth rate (CAGR) of 10.6%. The global market for pharmaceutical contracting can be broken down into four segments contract manufacture of over-the-counter (OTC) drugs and nutraceuticals, contract manufacture of bulk and dosage form drugs, contract research, and contract packaging. The OTC drug and nutraceutical segment accounted for nearly $128 billion in 2011 and is expected to grow at a CAGR of 10.9% to reach nearly $215 billion in 2016. The bulk and dosage form drug segment held a value of $53.4 billion in 2011 and is expected to increase at a CAGR of 10.1% to reach $86.3 billion in 2016. The research segment was worth $30.2 billion in 2011 and should be worth $50.5 billion in 2016, a CAGR of 10.8%. The packaging segment, worth $6.4 billion in 2011, should be worth $9.3 billion in 2016, a CAGR of 7.8%. The current pharmaceutical industry is highly influenced and aided by contract manufacturers, packagers, and researchers. New state-of-the-art facilities as well as specialized expertise and capabilities have granted contract manufacturers a large share in the pharmaceuticals industry. With increasing competition among generic brands as well as drug patent expirations, pharmaceutical companies are relying increasingly on contract manufacturers to meet consumer demand. Other reasons why more contract manufacturers are being utilized include rising research-anddevelopment costs, waning patent life, a decrease in overall drug discoveries, and increasing regulatory pressures. The trend in the industry is toward pharmaceutical companies consolidating their functions and focusing on basic or specialized functions while outsourcing the rest of their functions to contract manufacturing companies. Since the market for pharmaceutical contract manufacturing, research, and packaging is dependent on the pharmaceutical market, as the pharmaceutical market increases, so does the contract manufacturing market.

This study examines the areas of market growth in pharmaceuticals contract manufacturing, research, and packaging from the point of view of manufacturers and users. Strategic decisionmakers at biochemical and biotechnology companies, physicians, pharmaceuticals and biopharmaceuticals companies, and related research companies will find value in this study. In addition to PHM0043D, BCC has released PHM103A, PHM104A, and PHM105A, three reports that respectively cover the North American, European, and the rest of the worlds pharmaceutical contracting markets in further detail. SUMMARY FIGURE GLOBAL PHARMACEUTICAL CONTRACT MANUFACTURING AND CONTRACT RESEARCH ORGANIZATIONS REVENUE, 2009-2016 ($ BILLIONS)

Source: BCC Research Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC, 49 Walnut Park, Building 2, Wellesley, MA 02481, Telephone: 866-285-7215; Email: editor@bccresearch.com as the source and publisher, along with report number, which can be found in the first paragraph of this release. Thank you.