Once a friend now an enemy: Over zealous EU regulators could hamper the CMO market, says analyst

By Natalie Morrison

- Last updated on GMT

Related tags: Regulation

The European CMO industry could be blocked by over complex layers of regulation, says Frost & Sullivan analyst Aiswariya Chidambaram.

In part II of our pod series based on Chidambaram’s report ‘European Pharmaceutical and Biotech Contract Manufacturing Markets’, she predicted European contract manufacturing organisations (CMOs) could see a revenue boost from $10bn in 2011, to $20.75bn in 2018.

However, although stringent regulations in the region are an attraction for pharma firms looking to trust a firm with their outsourced work, she says the soaring costs of it could soon drag down the market’s progress.

She said: "The emerging markets like India and China are growing at robust rates compared to developing markets. These markets are becoming more technically well-equipped and become more and more WHO (World Health Organisation) compliant.

“With all these processes in place most the pharma companies are trying to establish their facilities in the emerging markets.”

Still with well established quality control processes, Chidambaram feels there is still a place for European CMOs, and that the market should focus on what it does best – complicated products​.

“When we talk of manufacturing of highly regulated products or complicated products like biopharmaceuticals, I still say companies prefer to outsource to the developed markets like the US and indeed, Europe," ​she added.

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