Around 50% of senior players in the drug manufacturing industry are optimistic about economic recovery between Q3 2009 and Q2 2010, according to a new report.
The new "Global Drug Manufacturing Industry Outlook to 2010" report by ICD Research, a Progressive Media company, indicates that the current period of cost pressures and accumulated losses is not likely to carry through to 2010 and that recovery should be expected.
Drug manufacturers, CMOs, CROs and suppliers have all indicated optimism for revenue growth in the drug manufacturing over the next 12 months.
Of these 70% expected an increase or stability in revenues, which are likely to be related to an increase in demand from the end consumer segment as well as buoyant provider capacity expansion plans.
The majority of drug manufacturers (42% of drug manufacturers and 27% of CMOs and CROs) are expected to increase their procurement spend on various products and services over the next 12 months.
Only 36% of drug manufacturers and 41% of converters are looking to decrease spend with the rest keeping purchasing levels neutral.
The report indicates that the areas most conspicuous for increased spending will be in the active pharmaceutical ingredients and intermediates, clinical trials and development services, contract manufacturing, biotechnology equipment and materials and packaging materials and containers sectors.
The ICD research sample is based on a survey of 559 senior drug manufacturing industry professionals conducted during April and May 2009.