Analyst: CMOs to prosper as biopharma reduces network sharing – BioPharma-Reporter.com

Biopharma firms are no longer offering spare capacity to rivals, according to an analyst, who says the trend is benefiting large CMOs.

Across the biomanufacturing world, “contract manufacturing capacity is tightening,” Jefferies analyst David Windley said in a note yesterday, due in part to “Biopharmas no longer offering out their excess capacity to each other.”

Along with reductions in internal capacity leading to a growth in outsourcing, such trends come as a benefit to contract manufacturing organisations (CMOs) “because they allow it to be more selective in the projects accepted,” he added, which “should also result in greater pricing power.”

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