European manufacturing facilities are gaining ground in the global race to support new drug launches, as biopharma companies increasingly turn to outsourced partners to diversify supply chains, access specialized technologies, and accelerate time-to-market.

 

Outsourced dose manufacturing for innovator drugs and biosimilars approved in the US and Europe (the EU and UK) has historically shifted between the two regions. 

 

However, the balance has now moved decisively toward Europe, with European facilities capturing a growing share of manufacturing contracts over the past two years, according to GlobalData, a leading intelligence and productivity company.

 

Data from GlobalData’s Drug By Manufacturer Database shows the gap widened significantly in the latest full-year figures, with the first half of 2026 continuing the trend. In 2025, half of all new drugs had dose manufacturing contracts with European-based facilities — nearly double the region’s share in 2023.

 

Meanwhile, US-based facilities have seen their share remain unchanged at 18% since 2024, creating the largest outsourcing gap between the two regions in recent years. While the US has previously narrowed the difference, coming close to European outsourcing levels in 2018, 2021, and 2023, Europe has maintained its overall lead.

 

Katia Djebbar, Pharma Analyst at GlobalData, comments: “National tax systems are one element supporting the growth in European contract manufacturing. Irish facilities accounted for 13% of the region’s dose manufacturing contracts in 2025, up from approximately 6% in 2024. Ireland increased its Research and Development (R&D) Corporation Tax Credit to 35% in January 2026. 

 

"It is now one of the most competitive rates in Europe. Germany, which contributed just over a fifth of European dose outsourcing for new drugs in 2025, also offers a generous R&D tax credit of 25–35%. By contrast, the US offers companies an Alternative Simplified Credit of between 6% and 14% (depending on increases in R&D spending).”

 

Tax incentives are emerging as a key factor driving investment in European contract development and manufacturing organizations (CDMOs), helping countries attract advanced manufacturing capabilities and expand specialized production capacity.

 

The trend is particularly evident in the biosimilars sector, where companies require scalable commercial manufacturing platforms and specialized production technologies. Celltrion Inc., which specializes in generic and biosimilar drug development, outsourced nine dose manufacturing contracts to European facilities in 2025, compared with seven in 2024, highlighting its growing reliance on European manufacturing partners.

 

Djebbar continues: “Although dose outsourcing of newly approved drugs to the US and Europe has fluctuated over the past decade, the gap between the two regions was at its widest in 2025, and 2026 looks set to extend that picture of biopharma’s strategic preference for European outsourcing facilities."