Biopharmaceutical Outsourcing

Gil Y. Roth
Contract Pharma June 2001 What noise does a drug make if it passes clinical trials but no o­ne is around to manufacture it? This question might be less hypothetical than the Zen koan about the tree falling in the woods, if the demand for biomanufacturing continues to outstrip supply.By all accounts, the biopharmaceutical industry is facing a major drought of manufacturing capacity, o­ne which may have a serious impact o­n the marketing of a new wave of drugs. Regulatory issues, economics and shortsightedness have all contributed to this predicament. David Molowa, a managing director at JP Morgan, discussed the factors that kept many CMOs and pharma companies from committing to invest in biomanufacturing facilities during the 1990s. “The main reason we’re in this biocapacity crunch,” said Mr. Molowa, “is because too many people still remember the over-investment in capacity that led to the crash in the early 1990s.

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