Article: Biologics: overcapacity concern rears its head.(Cover Story)

Contract manufacturing firms have been investing heavily in biologic drug production in the past few years to offset the slump in demand for small-molecule pharma intermediates. Companies including Akzo Nobel, Avecia, Cambrex, Dow Chemical, Degussa, DSM, and Lonza have spent heavily building biologics capacity and acquiring biomanufacturing firms in anticipation of a wave of new drug approvals that experts forecast would require upwards of 1 million liters of new contract biologics capacity.

However, delays in the launch of some biologic drugs coupled with continued investment in new plants may be leading to short-term overcapacity in the biologics sector. Lonza ...

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