In its latest market report, “CPhI US Pharma Market 2022 and Beyond,” the industry organization shares a range of predictions for the coming months, including rapid advances in treatment innovations, process technologies, and macro changes. These advances, according to the findings, likely will lead to a post-pandemic surge in activity across the US pharma industry.
Regarding supply chain and manufacturing impacts, the CPhI report set a stage for sustained growth in the US. The document spells out high-value manufacturing as prime for expansion, particularly with cell and gene therapy, biologics, and viral vector capacity (in demand across the short and medium term.
Additionally, experts contributing to the report pinpointed a large pocket of pent-up demand for dealmaking and predicted a significant amount of collaboration and partnering over the next 18 months. Companies that strike early and establish partnerships, the report surmises, are most likely to see the best prospects and take advantage of the majority of post-COVID growth.
Anthony Pombal, brand director Americas at Informa Markets said as CPhI works toward the open of its hybrid CPhI North America hybrid industry event (scheduled August 10-12), the industry is entering an “incredibly important time” for pharma companies’ business prospects.
“The hybrid event will facilitate pharma manufacturing companies and offer them a well-needed environment to source new technologies, advance new therapies and drug development and learn about the latest trends in pharma,” Pombal said.
“CPhI US Pharma Market 2022 and Beyond” was compiled by an assemblage of independent industry experts, who predicted reshoring on the horizon will most acutely benefit contract development and manufacturing organizations (CDMOs) as well as organizations working in high-value manufacturing. This activity reportedly is leading to a large acquisitional demand for prime US facilities and companies, with EBITA’s of over 20x forecast in the year ahead.
However, regarding the manufacturing of active pharmaceutical ingredients, the report suggests the US will remain in alignment with overseas production centers in China and India, excepting cases of the most critical supplies or in high-margin areas (such as with high-potency active pharmaceutical ingredients, or HPAPIs).
Report contributor Bikash Chatterjee, CEO of Pharmatech Associates, said of the mergers and acquisitions scene, “In 2020, more than 40% of the mergers and acquisitions in the US were CDMOs. In terms of where you need to put your energies in the US, cell and gene therapy is going to continue to grow, and there are a couple of areas that make complete sense: so if I had $100,000,000, I’d go out and buy a CDMO tomorrow.”
Peter Shapiro, senior director of drugs and business fundamentals with GlobalData, said, “There are opportunities for the US to lead in particular for advanced biologicals, but there are also medium- and long-term opportunities for manufacturers capable of manufacturing mRNA-based vaccines and therapies, as well as vector manufacturing for recombinant vector vaccines, gene therapy, and gene-modified cell therapy.”
The report also mentions that adding to the prospects for US manufacturers, capital (approximately USD 10b) from Operation Warp Speed was designated to increase development and manufacturing capacity domestically. This infusion of funds is likely to further stimulate advanced therapy medicinal products (ATMPs) and the approval of the two mRNA vaccines has validated an entirely new approach to vaccine delivery.
“It’s going to be the most exciting 10 years for US pharma; there is no question about it,” Chatterjee commented. “I think it’s going to be unbelievable in terms of the innovation we are going to see; this applies from new drugs and therapies to advanced manufacturing techniques for cell and gene therapies and continuous processing.”
For larger pharmaceutical companies, the increasingly competitive manufacturing landscape might mean well-documented strategic partnerships, in addition to pre-booking reserve capacity in advance of any need. Consequently, the report anticipates deeper partnerships, as well as the ability to demand longer contracts and more favorable terms.
In addition to access to manufacturing capacity continue to competitive, access to qualified, talented staff also will be a challenge. Keeping that competition in mind, the report advises, salaries for R&D scientists, in-house manufacturing personnel, and outsourcing partners likely will rise.
CPhI North America is scheduled August 10-12 in person, and online July 26 to August 6. For more information, visit www.cphi.com.
