Global Pharmaceutical Outsourcing of Manufacturing / Sales & Marketing to Exceed $30 Billion by 2011

New York, October 26, 2006 — The global contract manufacturing market, driven largely by high potency sterile drugs, protein-derived drugs, and specialized production methods, such as chiral chemistry, is expected to exceed $26 billion by 2011, according to the latest market research from Kalorama Information.

At the same time, outsourcing of sales and marketing is coming into vogue as pharmaceutical manufacturers adopt a “lean-and-mean” business model in an effort to stave off exorbitant R&D costs and shrinking sales from blockbuster drugs. The Contract Sales Organization (CSO) market will top $2.5 billion by year’s end according to Kalorama’s Pharmaceutical Outsourcing Opportunities Post-Launch, which anticipates that the market will surpass $5 billion by 2011, bringing the combined market value to more than $30 billion.

Traditionally, large pharmaceutical companies outsourced to CMOs solely to achieve efficiencies in cost, capacity, and time-to-market or to obtain a specific expertise not available in-house. Today, these factors still play a role, but the most dynamic CMO driver is rapidly becoming the unique, innovative, and state of-the-art processes and production technologies these companies offer.

Similarly, outsourcing sales and marketing to CSOs has become particularly advantageous to smaller pharmaceutical and biopharmaceutical companies who may not have the in-house sales and marketing expertise or the inclination to divert funds from R&D to build sales infrastructure.

“In the biopharmaceutical arena alone, when you consider that there are more than 250 clinical projects underway in the U.S. this year — a jump of 29% over last year — with 75% of the projects being in the Phase III and Phase II stages of development, it’s easy to see why the sheer number of biologics in the pipeline is creating this enormous market for outsourcing,” notes Anne Anscomb, the report’s author.

This Second Edition of Pharmaceutical Outsourcing Opportunities Post-Launch includes global market forecasts through 2011, market share of leading suppliers and in-depth company profiles, extensive background information on the overall pharmaceutical milieu as well as discussions on challenges facing the market. It can be purchased directly from Kalorama Information by clicking http://www.kaloramainformation.com/pub/1190864.html. It is also available at MarketResearch.com.

About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent market research for the life sciences. For more information, contact Tom Ehart at 240-747-3014 or tehart@marketresearch.com, or visit www.KaloramaInformation.com.