Contract Manufacturing Organizations (CMO) in Eastern Europe - Inconsistent Demand and Competition from Asia Raises Concerns

28 Oct 2010 • by Natalie Aster

London – The market report “Contract Manufacturing Organizations (CMO) in Eastern Europe - Inconsistent Demand and Competition from Asia Raises Concerns” by GBI Research predicts that the Eastern European contract manufacturing market is poised to grow at a healthy Compound Annual Growth Rate (CAGR) of 13% to reach $5.6 billion by 2016, from $2.4 billion in 2009. The factors driving this growth are the availability of low-cost skilled labor, better infrastructure and government policies, better Intellectual Property Rights (IPR) protection and an increasing uptake of biologics and generics. However, competition from low-cost Asian CMOs is a major challenge for Eastern European CMOs. The report highlights Poland and Czech Republic as major CMO destinations in Eastern Europe and also analyzes key events and trends affecting CMOs.

Report Details:

Contract Manufacturing Organizations (CMO) in Eastern Europe - Inconsistent Demand and Competition from Asia Raises Concerns

Published: Oct, 2010
Pages: 95
Price: US$ 3,500.00

Report Sample Abstracts:

Eastern European CMO Market is Poised for Impressive Growth

The CMO market in the Eastern Europe is expected to do well in the coming few years. The market is likely to grow at a rate faster than that for the overall global CMO market. GBI Research finds that the CMO market in Eastern Europe will grow at a CAGR of 13% over the period 2009-2016. The factors driving the growth are availability of low-cost skilled labor, better infrastructure and government support for CMO market, increase in the uptake of generics, superior IPR protection and increased uptake of biologics and biosimilars.

Eastern Europe Offers Better IPR Protection Compared to Other Emerging CMO Destinations

GBI Research finds that most of the countries in Eastern Europe offer superior IPR protection compared to other emerging CMO markets. The Eastern European nations have strong Intellectual Property (IP) protection and enforcement frameworks and witness fewer instances of IPR violation, unlike their Asian counterparts who lack a proper IPR protection and enforcement framework and witness more instances of IPR violation. Better IPR protection and enforcement frameworks in Eastern Europe are one of the key drivers for outsourcing to Eastern Europe.

Poland and Czech Republic are Currently the Most Attractive CMO Destinations in Eastern Europe

GBI Research finds that most of the prominent CMOs operating in the region are located in Poland and the Czech Republic. On the country-by-country analysis conducted by GBI Research these two countries rank higher than most of the other Eastern European nations. Better infrastructure, geographical proximity to the Western European markets, the availability of low-cost skilled labor and government support are some of the key reasons for the attractiveness of these countries for carrying out CMO business.

Competition from Low-cost Asian CMOs is a Point of Concern for Eastern European CMOs

Asian CMOs pose a major challenge to Eastern European CMOs, due to their cost advantage and improving service portfolio. CMOs from China produce generic Active Pharmaceutical Ingredients (APIs) and finished dosages at very low-costs and are focusing on biologics manufacturing. Indian CMOs specialize in API and generics manufacturing and can also offer end-to-end service to their clients at a competitive price. These CMOs are also looking for long term contracts from major pharmaceutical companies and are improving their service portfolio to cater to the needs of their clients. The Asian CMOs are also benefiting from growing domestic demand in the emerging drug markets of China and India. The service portfolio of Eastern European and Asian CMOs is quite similar and competition from Asian CMOs will be a major hurdle for growth in the Eastern European CMO market.

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