The CMO industry is currently growing strongly (globally high single digits, with some specialist subsectors in double digit grow) http://resultshealthcare.com/insight/pharma-biotech-2017/ fuelled by pharma and biotech’s strategy of outsourcing and continued growth in demand for pharmaceuticals (both innovative and generic). However, the industry has continued to be fragmented with no dominant players. There are many historical and practical reasons for this which we have detailed in our white paper on this sector. Yesterday’s announcement that the Carlyle Group and GTCR are to acquire AMRI http://ir.amriglobal.com/releasedetail.cfm?ReleaseID=1029167 following on from Thermo Fisher’s acquisition of Patheon (announced last month http://news.patheon.com/press-release/corporate/thermo-fisher-scientific-acquire-patheon-leading-contract-development-and) confirms both the long term growth potential of the sector and the opportunity for consolidation.
There have been several drivers for consolidation over the years to create companies with very significant market share through M&A, however no clear winner has emerged from these efforts. It will be interesting to see if this is the start of a new attempt to produce a few players of very significant scale in this sector.