Increasing competition in the healthcare sector has impelled major companies to concentrate on the reformation of their business strategies along with the emphasis on product manufacturing, development, design, and marketing, reports Transparency Market Research in a new study. In this regard, contract manufacturing outsourcing has become a major need for the manufacturers of pharmaceuticals and medical devices as they strive to retain their position in the market. The top three companies in the global healthcare CMO market acquire approximately 17.2% of the global revenue with Catalent Pharma Solutions Inc. leading. The company was trailed by Lonza Group and Boehringer Ingelheim GmbH.
As the global healthcare CMO market is extremely fragmented with only a few companies dominating the market, the leading companies in this segment have taken up dominant competitive strategies, strong acquisition strategies, and high product development to maintain their lead in the market. Due to the availability of similar technologies and low product differentiation, the competitive rivalry in the market is expected to rise. Moreover, leading companies are investing on research and development projects to maintain a high level of competitive rivalry.