Biologic API manufacture stays in-house - BioPharma-Reporter.com

Capital expenditure at public pharma companies has increased by a compound annual growth rate (CAGR) of 4.7% between 2014 and 2018. When broken down further, large cap pharma companies account for approximately 75% of expenditure in 2018, according to information released by GlobalData.

Through the data analytics company’s research on capital expenditure, the suggestion is that ‘mega’ and large cap companies are choosing to invest considerable sums in their own manufacturing capabilities and facilities.

As a result, the market for contract development and manufacturing organizations (CDMOs) to provide outsourcing capabilities to the larger companies is proving difficult, GlobalData suggests.

The company further highlighted that a large number of pharma companies have invested heavily into projects focused on active pharmaceutical ingredient (API) biologics and injectable capabilities.

This type of capital expenditure is reflected in some of the moves by the larger companies in the field, such as Novartis decision to buyout the CDMO, CellforCure, it had partnered with to develop its chimeric antigen receptor (CAR)-T treatment, Kymriah (tisagenlecleucel), rather than continue to work together on a contract basis.

Rival company in the area, Gilead, also chose to invest in expanding its production capabilities for its own CAR-T treatment rather than look for an outsourcing partner. CEO, Daniel O’Day, explained that the decision had been made to ensure that the company could ensure a quick production turnaround time.

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