Cover Image
Market Research Report

PharmSource - M&A in the Contract Manufacturing Industry: Implications and Outlook - 2018 Edition

Published by GlobalData Product code 765959
Published Content info 52 Pages
Delivery time: 1-2 business days
Back to Top
PharmSource - M&A in the Contract Manufacturing Industry: Implications and Outlook - 2018 Edition
Published: December 19, 2018 Content info: 52 Pages

Mergers and Acquisitions of companies and facilities have been a high profile feature of the pharmaceutical CMO industry in current times. Acquisition deals consistently receive high profile coverage in industry news media, with questions surrounding valuations, strategic intent and which companies are potentially next targets continuously debated in the industry.

There were 130 acquisitions of service providers during the three-year period from 2015-2017. The majority of acquisitions targeted contract manufacturing organizations (CMOs) that focused on APIs-small molecule, dose, and analytical services. Nearly 70% of acquirers of services companies were strategic acquirers, that is, they were operating companies rather than investment firms. A few services companies changed hands as a consequence of the purchase of their parent company, while several CMOs were acquired by bio/pharma companies seeking to secure product supply.

More than half of acquirers were public companies, although 36% of company acquisitions were by PE firms or by CMOs owned by PE firms, with a high level of influence on the industry. Companies with complex technologies, including biologics manufacturing, are likely to be sought-after targets, as well as CMOs with specialized capabilities. However, in the coming years, M&A activity will be hindered by higher interest rates, uncertain trade and investment policies, high valuation expectations, and sizeable debt loads carried by some of the most active acquirers.

The report "PharmSource - M&A in the Contract Manufacturing Industry: Implications and Outlook - 2018 Edition", analyzes merger and acquisition (M&A) activity in the pharmaceutical contract manufacturing industry during the period 2015-2017. The services considered in this report are contract manufacturing of active pharmaceutical ingredients (APIs) and finished dose products, associated analytical services, and packaging. Contract research providers were excluded.


  • Helps bio/pharmaceutical manufacturing, development, and supply chain executives understand the implications of M&A activity on their supply base and sourcing options.
  • Helps executives at CMOs and associated contract services companies and investors to recognize the significance of M&A activities for the competitive dynamics of the industry and how company strategies must change to address the altering market.
  • To gain insights that might enable predictions of the nature and implications of M&A activity in the next three to five years.

Reasons to buy

This 52-page report gives important, expert insight you won't find in any other source. 28 tables and figures throughout the report illustrate major points and trends. This report is required reading for -

  • CMOs: market trends, strategic planning, competitive intelligence, performance benchmarking
  • Bio/Pharma: supplier performance benchmarking, market trends, competitive intelligence
  • Private equity and Stock analysts: target identification and analysis, portfolio company performance benchmarking.
Table of Contents
Product Code: GDPS0024MAR

Table of Contents

1. Executive Summary 4

2 Objectives and Methodology 5

3 Overview of M&A Activity 2015-2017 6

  • Target Characteristics 7
  • Acquirer Characteristics 11

4 Segment Close-Ups of M&A Activity, 2015-2017 15

  • Dose Manufacturing 15
  • API - Biologic 18
  • API - Small Molecule 19
  • Analytical Services 21
  • Formulation and Clinical Supplies Manufacturing 24
  • Packaging 26

5 Valuations 27

6 Facility Acquisitions 29

7 What It Means 36

8 The Outlook for M&A in the Manufacturing Services Industry 39

9 Notes on Methodology 41

10 Appendix 42

  • Service Acquisitions 2015-2017 42
  • Bibliography 49
  • Primary Research - Key Opinion Leaders Cited in this Report 49
  • About the Authors 50

List of Tables

  • Table 1: CMO Services Businesses Acquired as Part of Larger Deals, 2017 6
  • Table 2: Company Acquisitions by Target Service and Size, 2015-2017 9
  • Table 3: Company Acquisitions by Target Service and Ownership, 2015-2017 9
  • Table 4: Company Acquisitions by Target Market Scope and Size, 2015-2017 10
  • Table 5: Most Active Acquirers, 2015-2017 13
  • Table 6: Company Acquisitions of Dose Manufacturers, 2015-2017 16
  • Table 7: Company Acquisitions of API - Biologic Manufacturers, 2015-2017 19
  • Table 8: Company Acquisitions of API - Small Molecule Manufacturers, 2015-2017 20
  • Table 9: Company Acquisitions of Analytical Services, 2015-2017 22
  • Table 10: Company Acquisitions of Formulation Manufacturers, 2015-2017 25
  • Table 11: Company Acquisitions of Contract Packagers, 2015-2017 26
  • Table 12: Services Deals with Known Transaction Value and Multiples, 2015-2017 27
  • Table 13: Facility Acquisitions by CMOs, 2015-2017 33
  • Table 14: Most Active Acquirers, 2015-2017 36
  • Table 15: Acquisitions by PE Firms, 2015-2017 37
  • Table 16: Potential Targets: API - Biologic (Non-Cell and Gene Therapy) Service Providers 39
  • Table 17: Potential Targets: API - Biologic (Gene and Cell Therapy Only) Service Providers 40
  • Table 18: Service Acquisitions, 2015-2017 42

List of Figures

  • Figure 1: Company Acquisitions by Target Service Offering, 2015-2017 7
  • Figure 2: Company Acquisitions by Target Revenues, 2015-2017 8
  • Figure 3: Company Acquisitions by Target Ownership, 2015-2017 8
  • Figure 4: Acquisition Targets by Sophistication of Capabilities 11
  • Figure 5: Number of Acquisitions by Acquirer's Core Business 12
  • Figure 6: Number of Acquisitions by Acquirer Ownership 13
  • Figure 7: Number of Acquisitions by Principal Acquirer Motivation 14
  • Figure 8: Dose Forms Manufactured by Acquired Dose Manufacturers 15
  • Figure 9: Pharma CMO Facility Acquisitions, 2015-2017 30
Back to Top