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Biopharma's capacity crunch. (Current Research).(Statistical Data Included)

The McKinsey Quarterly

| August 06, 2002 | Mallik, Ameet; Pinkus, Gary S.; Sheffer, Scott | COPYRIGHT 1991 McKinsey & Company, Inc. (Hide copyright information)Copyright

A wolf stands at the door of the biopharmaceutical industry. Over the next few years, the industry will be hard pressed to meet demand for promising new protein-based therapeutics that are now emerging from the laboratories. Manufacturing shortfalls in physical capacity and talent could spell lost revenues for companies through the middle of the decade.

Among the most promising of the new drugs filling the pipelines of pharmaceutical and biotechnology companies are compounds produced by live, genetically modified microbial or animal cells. Over the next five years, the revenues generated by protein-based therapeutics are set to grow at 15 percent a year, about twice the rate of the rest of the pharmaceutical industry. Much of the demand is driven by monoclonal antibodies, a powerful class of therapeutic proteins that must be administered in extremely high doses and can currently be produced only in mammalian cell-culture facilities. Yet the current worldwide …

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