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The Falling Graph of Dose Contract Manufacturing

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One could witness slow revenue growth of Dose Contract Manufacturing Organizations in 2019. Expectations were high on its revival in 2020, but unfortunately, things haven’t been the way they should be. On the contrary, the revenues have depleted further adding to the woes of organizations coming under the gamut of dose contract manufacturing. Apparently, the US, in particular, would be the most affected by the falling numbers due to the fact that it has the highest number of dose contract manufacturing facilities in the world.

When we shift our focus slightly towards Active Pharmaceutical Ingredients (API’s), a startling fact awaits us. Both large & small molecule API segments have bettered their performance as compared to their previous year’s achievements. API’s tend to benefit from the first stage of drug development itself. Some clinical trials use only API’s instead of other clinical formulations that are available in the first phase.

The US today has 118 CMO facilities, followed by India, France, Germany, Italy and the UK. India’s position as a destination for dose facilities is extremely impressive as there are many CMO’s that have a good penetration among the domestic market. Although, this year saw supply chain disruptions initially as the Indian Government restricted the export of 26 API’s as well as finished dose drugs due to COVID-19. However, these curbs now stand lifted.

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