What’s driving consolidation in the pharmaceutical contract services industry?
By Editorial Team for CPhI Worldwide Special - Fintan Walton, CEO of PharmaVentures
在制药研发迅速加速并且全球供应连锁店受到审查的一年中，合同服务需求很少如此浮出水面。随着CPHI在全球范围内的临近，活动组织者Informa Markets与Pharmaventures首席执行官Fintan Walton博士进行了交谈，他的CPHI全球会议会议介绍了收购和合并背后的驱动力，以及哪些类型的设施，技术和公司类型最需要.
你能给当前系统的概况吗ical contract services market?
FW：在过去的10 - 15年中，CDMO景观的增长已经大大增长。有两个关键的驱动力，首先是制药公司将其更多制造外包的举动，其次是生物技术公司的出现，这些公司采用了依赖外包的虚拟业务模型。Pharma外包为他们提供了灵活性，也可以访问创新的制造工艺。从历史上看，制造业（尤其是在中国和印度）最初集中于低成本的小分子药物。但是，我们现在看到的是更多新颖的药物，生物药物和细胞和基因疗法，这些疗法引入了新的制造挑战。
A particular recent example is the emergence of COVID-19 vaccines that have utilized mRNA technology and so CDMOs with these skill sets are potentially in a very powerful position, especially as some pharmaceutical companies don’t have these manufacturing technologies.
An additional factor is the fact that pharma companies will often get better efficiencies through contract manufacture than trying to undertake it in-house. All these factors mean we are seeing tremendous growth in contract services, which is driving very high EBITDA multiples for the best companies.
FW: The main driver of acquisitions is still to build a much more diverse company, with broader capabilities. Therefore new technologies play a key role, for example, gene therapies, but it is also often overseas companies looking for a foothold in new regions. Then from the big pharma side, we continue to see a divestment out of manufacturing, and selling to the CDMOs. This is often where they have facilities they no longer use, and from a CDMO perspective these are often ideal targets for acquisition as the valuations are likely to be lower and there are often guaranteed contracts that go with the sale.
Do you think the industry is too fragmented at the moment in terms of CROs and CDMOs?
FW: That’s a good question; whether it’s too fragmented. Fragmentation is more often a good problem because you’ve got more competition. So, from a customer point of view, the more options you have the better, and the more you can negotiate on price. However, from a CDMO’s point of view consolidation reduces the competition, increases efficiencies and therefore increases profits. Thus, you can capitalize as best you can on that growth. There are two types of consolidation that I see going on in the industry: one is consolidation of similar types of organizations, so CDMOs buying CDMOs and getting bigger in the CDMO space; and then an alternative type is companies acquiring different services. For example, you get companies like Thermo Fisher buying both CROs and CDMOs to create something much larger and potentially synergistic. I think my own view on this is that we’re going to see a lot more services players doing more acquisitions, so that means CROs buying CDMOs or CDMOs buying CROs in order to increase the services that they can provide.
FW: Catalent have been very active on the acquisitions front in the cell and gene therapy space, acquiring both MaSTherCell and Paragon Bioservices in the past two years. They have been acquiring companies very frequently as they are looking to make their pharmaceutical services as broad as possible. Another deal that really caught my eye was the private equity company EQT’s purchase of Swedish manufacturing company Recipharm recently for over $2 billion. Recipharm is now expanding rapidly through acquisitions.
Do you think we will see the larger CDMOs ensuringthat they have their manufacturing sites located in the three major continents (i.e. just in case a pharma customer has a preference on manufacturing location)?
What do you think will happen in the next 5 years; do you think the CDMO industry will be dominated by much large players?
FW: Yes I think you will see that. But with such strong demand, I do also envisage new CDMOs emerging, as we know of individuals, companies, and private equity houses that are aligning to grow in that space–everybody’s seeing this as an opportunity.
For further information about PharmaVentures visit www.pharmaventures.com