Industry Trends & Challenges
The life Sciences industry holds immense importance in the Covid and post Covid era. Drug development and allied sciences will see a surge in business across all verticals. In such a scenario it is important to note that many companies across industries have already been outsourcing either parts or the entire Supply Chain to specialized partners. This has brought in several benefits such as increased Value, Scale, Flexibility and Reduced Operational Costs.
In the life sciences Industry, smaller to mid-market companies tend to outsource everything from clinical research to supply chain management like contract research organizations (CRO, contract packagers (CPO), contract manufacturing organizations (CMO) and third-party logistics providers (3PLs) and also reverse logistics including Charge backs & Rebate processing. In fact a report suggests that with the growing demand for generic medicines and biologic's, the capital-intensive nature of the business, and the complex manufacturing requirements, many pharmaceutical companies have identified the potential profitability in contracting with a CMO (contract manufacturing outsourcing) for both clinical and commercial stage manufacturing. The CMO Market is estimated to grow at 4%, during the period of 2020-2025. While the entire global bio pharmaceutical third party logistics market size was estimated at USD 86.37 billion in 2018 and is projected to expand at a CAGR of 4.9% over the forecast period of 2019-2025.
With an efficient Outsourcing model, Life Sciences companies can better focus on their core competency of Development & Launch of New Drugs or Devices to market.