Queensland Life Sciences Industry Report 2012 (PDF, 3.5MB)

11.1.2 Contract Manufacturing
Half (48%) of the companies that outsource R&D engaged a
contract manufacturing organisation (CMO) during 2011. In 2009
only 33% of respondents reported that they had engaged a CMO.
Companies (15) spent a combined total of $46.2 million on CMO
services in 2011. The average expenditure on CMO services per
company was $3.1 million and the median was $129,000.
The top five countries in which CMO suppliers were located were
Australia, USA, China, India and Malaysia (Figure 39). In 2009, the
top five CMO supplier locations were Australia (46%), USA (21%),
China (6%), United Kingdom (6%) and New Zealand (6%).
Figure 39: Location of CMO suppliers utilised by QLS organisations
(18 respondents)
Figure 40 illustrates the location of CMOs by the proportion of
expenditure incurred in each location. Where multiple countries
were specified, the company’s expenditure was assumed to be
split evenly.
While Australia comprised 34.4% of CMO engagements, it made
up only 11.3% of expenditure. By contrast, China and India
accounted for 15.6% and 12.6% of engagements, respectively,
but were responsible for 29.8% and 27.6% of expenditure. This
could imply that larger projects or more costly R&D activities
are being outsourced to companies in China and India rather
than in Australia.
Figure 40: Location of CMO suppliers according to the proportion
of expenditure by QLD companies (15 respondents)
11.1.3 Contract Research
18 companies (out of 36 respondents; 50%) indicated that they had
used a contract research organisation (CRO) during 2011. Of these,
15 spent a total of $11.8 million, with an average of $790,000 and
median of $458,000. By comparison, 29% reported that they had
engaged a CRO in 2009 and spent an average of $657,600 each.
The 18 companies nominated 27 countries in which CRO service
suppliers were located. The top three locations for CROs utilised
by companies were Australia (40%), USA (22%) and the UK (18.5%).
India, Russia, the European Union and the United Arab Emirates
were also represented.
Figure 41: Location of CRO suppliers utilised by QLS organisations
(38 respondents)
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