Manufacturing and supply agreements have long been present in the pharmaceutical industry, as companies have sought external expertise for manufacturing and supply of finished product.
Manufacturing and supply deal making has shown steady and high levels in frequency since 2009.
According to Current Agreements life science deals and alliance database, there have been over 850 manufacturing deals and over 1,100 supply deals in the last four years.
Figure 1: Manufacturing and supply partnering since 2009
Source: Current Agreements, 2013
A manufacturing agreement is when a party is contracted to manufacture product or intermediates on behalf of another party.
A supply agreement is when a party is contracted to supply product or intermediates to or on behalf of another party.
A popular method of contracting out the manufacture of products or intermediates to a third party provider is through manufacturing and supply deals.
This approach has often been used by a number of the biopharma companies especially big pharma companies.
The leading top pharmaceutical companies that out source manufacturing include Sanofi (19 deals), Novartis (13 deals), GlaxoSmithKline (12 deals) and Pfizer (9 deals) in the past four years.
Similarly the leading top pharmaceutical companies that out source supply include GSK (24 deals), Pfizer (17 deals), Roche, Sanofi (15 deals) and AstraZeneca (13 deals) in the past four years.
The following figure provides an overview of manufacturing and supply deals by each of the top pharma companies.
Figure 2: Top bigpharma manufacturing and supply partnering 2009-2012
Source: Current Agreements, 2013
Signing manufacturing and supply agreements is predominantly at the latter stages of development, ie. when already marketed, in order to obtain additional production capacity and/or market efficient distribution.
However the figure below illustrates that the manufacturing and supply element also take splace from discovery through to late clinical stage. This probably reflects a companies seeking additional support and resources to maximize manufacturing and supply capacity for clinical trial supply or in readiness for market launch.
Figure 3: Manufacturing and supply deals signed at various phases of development 2009-2012
Source: Current Agreements, 2013
Top manufacturing and supply deals
Below is a list of high value deals since 2009 in manufacturing and supply dealmaking.
Figure 4: Top 4 high value deals for manufacturing partnering since 2009
Source: Current Agreements, 2013
Figure 5: Top 4 high value deals for supply partnering since 2009
Source: Current Agreements, 2013
The data in this article was abstracted from the Manufacturing and Supply Partnering Terms and Agreements report, which provides comprehensive understanding and unprecedented access to the manufacturing and supply agreements entered into by the world’s biopharma companies. In addition the report provides details of deals broken down by deal type, therapy focus, and company A-Z. The report provides a detailed understanding and analysis of how and why companies enter manufacturing and supply deals.
Sources
The above information has been abstracted from the following resources:
- Manufacturing and Supply Partnering Terms and Agreements report
- Current Agreements life sciences partnering, M&A and financing deals database
Related
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