Expanding Japanese pharmaceutical manufacturing into a world-class business. - Japan CMO Association

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OVERVIEW
Overview
Greetings
Organization
Principles

Greeting of the Japan CMO Association (JCMOA)

CMOs will take an important position in the pharmaceutical industry undergoing significant changes and innovation.

Our Association, established in November 2010, started with 18 member companies. We have grown to have 28 companies with the respective Committees actively working on their assigned activities. Additionally, many pharmaceutical companies have created a CMO management department, increasing the visibility of CMOs. Currently 30% of the production volume of pharmaceutical products is manufactured by CMOs.

In the past few years, however, the pharmaceutical industry entered a period of unprecedented changes and innovation. CMOs are largely affected by trends in domestic innovator-drug companies, foreign-affiliated innovator-drug companies, generic-drug companies, and OTC medicine companies. We do not think the current level of success will continue. CMOs must develop new strategies.

From now on, more innovator-drug companies will specialize in research and development, pharmaceutical-information provision, and the marketing of new drugs, especially anticancer and biological and antibody drugs, thereby downscaling and consolidating factories that require substantial investments and costs. Generic-drug manufacturers will become more careful about capital investments in their factories because of drug-price revisions and the increase in development costs. We believe that the entire pharmaceutical industry will accelerate into specialization.

The strengths of CMOs in the pharmaceutical industry are the wide range of technological capabilities, the ability to provide a stable supply, and the high quality of our products, which have been fostered through contract manufacturing commissioned by many pharmaceutical companies. CMOs, therefore, are the professionals of manufacturing. Making use of these strengths, not just in Japan, we eye the possibility of expanding overseas in the near future. In terms of drug legislation, we would like to reach out to the government to shorten the manufacturing transfer period and standardization of the rules.

The Association intends to let CMOs increase their presence in the pharmaceutical industry and take the most important position as a contractor of drug manufacturing. In addition, we would like to contribute to the good health of citizens and revitalization of the Japanese economy as a group in the pharmaceutical industry.

JCMOA Chairman Shuichi Ando

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