$289.64 Billion Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Markets, 2027 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.

The Pharmaceutical CDMO Market was valued at USD 183.62 billion in 2021. It is expected to reach USD 289.64 billion by 2027, registering a CAGR of 7.29% during the forecast period.

Key Highlights

• As a result of the rising demand for generic medicines and biologics, the capital-intensive nature of the business, and the complex manufacturing requirements, many pharmaceutical companies have identified the potential profitability in contracting with a CMO (contract manufacturing outsourcing) for both clinical and commercial stage manufacturing.
• The most significant factor driving the growth of CMOs in the pharmaceutical industry is the growing need for state-of-the-art processes and production technologies, which have proven significantly effective in meeting regulatory requirements.
• The pharmaceutical companies have been directing their priorities toward core competency areas. Hence, they prefer not to dispense available resources, expertise, and technology on formulating the final dose of medicines. The increased competition and shrinking profit margins compelled the pharmaceutical companies to revisit their production processes and R&D activities instead of manufacturing the formulated drug to stay competitive in the market.
• The complexity of the biopharmaceuticals and the highly personalized medical therapies and devices drive the increased complexity in the supply chain operations and lead to increasing reliance on contract manufacturing. Factors such as these are helpful in the proliferation of the CMO market. In March 2021, Fujifilm Diosynth Biotechnologies selected Holly Springs, North Carolina, for its new JPY 200 billion large-scale cell-culture biomanufacturing site. The new facility will provide large-scale cell-culture manufacturing for bulk drug-substance production. The facility is expected to be operational by the spring of 2025.
• The CMO/CDMO service sector is uniquely positioned to address some of the challenges drug developers face amid the COVID-19 pandemic. This pandemic has impacted multiple aspects of the pharma and biopharma industry, from drug development, clinical trials, supplies, manufacturing to supply chain logistics. However, the drug shortages due to COVID-19 are limited, and they are expected to remain so for the short term due to stockpiles of pharmaceuticals and APIs globally.

Key Market Trends

Increasing Investment in R&D expected to Drive the Market

• The United States is the world's largest market for drugs and accounts for almost half of the R&D spending in the pharmaceutical and biotechnology markets. Hence, CMOs play a critical role in this market and have invested in new facilities and technologies to cater to a wide range of outsourcing units.
• Besides capturing the benefits of a location in Asia through an in-house investment, companies are also turning to research-based partnerships as a way of high-end sourcing expertise, building drug discovery, and investments in manufacturing.
• The biggest Chinese professional manufacturer of dermatology and anti-tuberculosis drug products, Huapont, is one of the fastest-growing pharmaceutical manufacturers in China, mainly dependent on product R&D and market expansion.
• CRO/CMOs can leverage their expertise, owing to their R&D and complex manufacturing capabilities, to fill the needs of the large generic, big pharmaceutical, and biotech companies.
• The highly fragmented nature of the US pharmaceutical contract manufacturing market, with over 150 CMOs, results in price competition and drives down CMO revenue.
• A major stake of R&D investments and capacity expansions is likely in the injectable and sterile liquid dose formulations segment. Small biotech firms get access to specialized knowledge and resources, helping them expedite their R&D activities.
• Greater technological complexity in drug development and greater specificity in disease targets have helped raise average R&D costs. Firms now identify drugs with particular molecular characteristics instead of trial-and-error methods to find compounds that work in some desired way.

North America is Estimated to hold the largest market for CRO

• North America is the largest market for contract research organizations (CRO), with the United States ushering the market, followed by Canada. The region's dominance is due to many pharmaceutical companies and extensive drug development activities, especially in the United States. Moreover, the region has a strong foothold of CROs, contributing to the market's growth. Some of them include IQVIA Holdings Inc., Pharmaceutical Product Development LLC, PRA Health Sciences Inc., PAREXEL International Corp, and Laboratory Corporation of America Holdings.
• The growing investment to accelerate CRO's capabilities is expected to boost the studied market's growth positively. In January 2021, Parexel and Signify Health announced a strategic collaboration to provide customers with new CRO solutions to enable a more diverse and traditionally underrepresented population for their clinical trials. The partnership would improve patient access to clinical trials, bringing studies to patients in their own homes.
• Moreover, the growing investment for accelerating CRO's capabilities is expected to boost the market's growth. For instance, in November 2021, NAMSA, the MedTech Contract Research Organization (CRO) offering global end-to-end development services, announced the expansion of its Minneapolis preclinical research laboratory. This expansion would add 55,000 sq. ft to Minneapolis's current 130,000 sq. ft preclinical campus.
• Cardiovascular and circulatory diseases are the leading causes of death in the country. Hence, these therapies are the second-most highly tested in clinical trials across the nation, with 62,115 studies conducted in the past 20 years.

Competitive Landscape

The Pharmaceutical CDMO Market is concentrated in nature. The need for continued R&D-related expenses pushes forward the extension of business opportunities. In the pharmaceutical industry, medicine is continuously tested and is most profitable during the patent period; the emergence of competitive solutions can hamper the return rate.

Such factors push for continued innovation and fast-track the introduction time to market. Major players include Catalent Inc., Recipharm AB, and Jubilant Life Sciences Ltd.

Companies Mentioned

• Catalent Inc.
• Recipharm AB
• Jubilant Life Sciences Ltd
• Patheon Inc.
• Boehringer Ingelheim Group
• Pfizer CentreSource
• Aenova Holding GmbH
• Famar SA
• Baxter Biopharma Solutions
• Lonza Group
• Tesa Labtec GmbH (TESA SE)
• Tapemark
• ARX LLC

For more information about this report visit https://www.researchandmarkets.com/r/u97jq3

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