Contract
for pharma facility
Saudi Arabia. Foster Wheeler AG has been awarded a conceptual and basic design contract by SAJA Pharmaceuticals for the expansion of a manufacturing facility in Jeddah.
SAJA, a joint venture between TAMER Industries and Japanese pharmaceutical companies, Daiichi-Sankyo Co Ltd and Astellas Pharma Inc, produces brand name as well as generic medicines for both the Saudi and other Middle East markets.
The contract provides conceptual and basic design services for a new research and development building, as well as the manufacture of small production lots for launching new products, a new oral solid dosing manufacturing and packaging facility, warehouse, quality control laboratories and an administrative building.
Foster Wheeler's work will be completed during May 2012. The contract value has not been disclosed.
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11:00 22/02/2012
Buoyant
market for contract manufacturing?
United Kingdom. Big pharma is increasingly viewing the outsourcing of pharmaceutical manufacturing as a way of focussing on its core competencies such as R&D.
Patent expiry of key blockbuster drugs
worth $45bn and biologics worth $30bn is expected to reduce capacity
utilisation rates of manufacturing facilities, making outsourcing a viable
option for pharmaceutical and biotech
companies.
New analysis from Frost &
Sullivan, entitled European pharmaceutical and biotech
contract manufacturing markets
, indicates that the European pharmaceutical contract manufacturing market attracted revenues of $10.02bn in 2011 and the estimates are that this will reach $20.75bn in 2018. Over the same period, European biotech contract manufacturing is likely to expand from $1.21bn to an estimated $2.67bn.
Frost & Sullivan Research Analyst Aiswariya Chidambaram says: "The
impact of the economic crisis, coupled with the poor performance of the
venture capital industry in Europe, has underlined the popularity of
contract manufacturing as it has become synonymous with cost-cutting and
the timely entry of products into the market." The analysis states that
utilisation rates of manufacturing plants are likely to reduce by half,
triggering the increase in outsourcing.
Currently, the major pharma companies contribute between 10 to 25 per cent of the total revenues of contract manufacturing organisations in Europe. Frost & Sullivan anticipates that this figure will rise to 40 per cent by 2013, and up to 50 per cent by 2018.
However, stringent regulatory requirements could place pressure on contract manufacturing organisations as the regulatory environment in Europe becomes progressively stricter because of contamination issues, safety compliance and drug recalls. There are significant fixed costs for these companies in gaining regulatory approvals.
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15:31 23/01/2012
