Product Code: 66565
The Pharmaceutical CDMO market was valued USD 148.5 billion in 2019, and it is expected to reach USD 224.9 billion by 2025, registering a CAGR of 7%, during the period of 2020-2025.
- As a result of the growing 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 biggest 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 highly effective in meeting regulatory requirements.
- US is one of the largest R&D spenders in the pharmaceutical and biotechnology sector. According to Axios, a prominent online news company in the United States, as of 2018, pharmaceutical industries in the country had the tenth-highest average after-tax profit levels, when compared to more than 100 different industries. While drug companies are responsible for 23% of the US health revenue, they also make 63% of the total profits.
- R&D sections of several pharmaceutical companies, especially operating at small scales, were condensed after the emergence of CRO players. As more CROs have started to offer research services with valuable cost, they won the competition with in-house pharmaceutical R&D departments. CROs also follow several strategies to stay ahead of top pharmaceutical players.
- The CMO/CDMO service sector is uniquely positioned to address some of the challenges that drug developers are facing 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 short-term, due to stockpiles of pharmaceuticals, APIs, globally.
Key Market Trends
Increasing Investment in R&D to Drive the Market Growth
- 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.
- 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 are able toleverage their expertise, owing to their R&D and complex manufacturing capabilities, to fill the needs of the large generic, big pharmaceutical and biotech companies.
- A major stake of R&D investments as well as capacity expansions, are likely in the injectable and sterile liquid dose formulations segment. Small biotech firms get access to specialized knowledge and resources, which help them expedite their R&D activities.
Asia-Pacific Expected to Witness Highest Growth in CRO Market
- Over the forecast period, Asia-Pacific is expected to witness the highest growth in the CRO market, owing to the low cost offered by the region, as compared to the United States and other developed economies. Additionally, growing incidences of chronic and lifestyle diseases, such as diabetes and heart disease, coupled with ease of patient recruitment and availability of expertise for clinical trials, are few driving factors boosting growth in the region.
- With increasing privatization of clinical trials, there has been an increase in the outsourcing of research processes in developing regions, such as China and India. For instance, the market is witnessing increased outsourcing of research services, such as Clinical Data Management, Pharmacovigilance, Biostatistics, etc., by large pharmaceuticals.
- Growing investments by several pharmaceutical and biopharmaceutical drugs manufacturing companies are also supporting the growth of the CRO market in the region. As part of its five-year Research, Innovation, and Enterprise 2020 plan, the Singaporean government has committed to invest nearly USD 2.4 billion, in advancing manufacturing and engineering in the pharmaceutical market.
- In January 2019, Lambda, headquartered in India, announced the acquisition of US-based Novum Pharmaceutical Research Services, in a move to increase its presence in the United States.
The CDMO Market is consolidated in nature. The need for continued research and development related expenses push forward for the extension of business opportunities. In the pharmaceutical industry, medicine is continuously tested and are most profitable during the patent period, the emergence of competitive solution can hamper the rate of return. Such factors push for continued innovation and fast track the introduction time to market. Major players include Catalent Inc., Recipharm AB, Jubilant Life Sciences Ltd., among others.
- February 2020 - Catalent, has signed an agreement with Zumutor Biologics, Inc., to manufacture Zumutor's, ZM008, for the treatment of solid tumors. Zumutor is a biologics company that develops novel immuno-oncotherapeutics to drive transformational improvements in cancer treatment.
- December 2019 - Thermo Fisher Scientific Inc. opened its new USD 90 million viral vector CDMO (contract development and manufacturing organization) site in Lexington, Mass. The 50,000-square-foot facility will add more than 200 jobs and support the development, testing and manufacture of viral vectors, which are critical to advancing new life-saving gene and cell therapies worldwide.
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Table of Contents
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Porter's Five Forces Analysis for CMO
- 4.2.2 Porter's Five Forces Analysis for CRO
- 4.3 Industry Value Chain Analysis
- 4.4 Industry Policies
- 4.5 Market Drivers
- 4.6 Market Restraints
- 4.7 Assessment of Impact of Covid-19 on the Industry
5 TECHNOLOGY SNAPSHOT
- 5.1 Dosage Formulation Technologies
- 5.2 Dosage Forms by Route of Administration
- 5.3 Key Considerations for Outsourcing of Pharmaceutical R&D
- 5.4 Major Segments in CRO - Bio Analytical Testing, Central Laboratory Testing, and cGMP Testing
6 MARKET SEGMENTATION
- 6.1 Service Type - CMO Segment
- 6.1.1 Active Pharmaceutical Ingredient (API) Manufacturing
- 6.1.2 Finished Dosage Formulation (FDF) Development & Manufacturing
- 220.127.116.11 Solid Dose Formulation
- 18.104.22.168 Liquid Dose Formulation
- 22.214.171.124 Injectable Dose Formulation
- 6.1.3 Secondary Packaging
- 6.2 Research Phase - CRO Segment
- 6.2.1 Pre-clinical
- 6.2.2 Phase I
- 6.2.3 Phase II
- 6.2.4 Phase III
- 6.2.5 Phase IV
- 6.3 Geography
- 6.3.1 For CMO Market Segment
- 126.96.36.199 North America
- 188.8.131.52.1 By Service Type
- 184.108.40.206.2 By Country
- 220.127.116.11.2.1 United States
- 18.104.22.168.2.2 Canada
- 22.214.171.124 Europe
- 126.96.36.199.1 By Service Type
- 188.8.131.52.2 By Country
- 184.108.40.206.2.1 United Kingdom
- 220.127.116.11.2.2 Germany
- 18.104.22.168.2.3 France
- 22.214.171.124.2.4 Italy
- 126.96.36.199.2.5 Rest of Europe
- 188.8.131.52 Asia-Pacific
- 184.108.40.206.1 By Service Type
- 220.127.116.11.2 By Country
- 18.104.22.168.2.1 China
- 22.214.171.124.2.2 India
- 126.96.36.199.2.3 Japan
- 188.8.131.52.2.4 Australia
- 184.108.40.206.2.5 Rest of Asia-Pacific
- 220.127.116.11 Latin America
- 18.104.22.168.1 By Service Type
- 22.214.171.124.2 By Country
- 126.96.36.199.2.1 Brazil
- 188.8.131.52.2.2 Mexico
- 184.108.40.206.2.3 Argentina
- 220.127.116.11.2.4 Rest of Latin America
- 18.104.22.168 Middle East and Africa
- 22.214.171.124.1 By Service Type
- 126.96.36.199.2 By Country
- 188.8.131.52.2.1 United Arab Emirates
- 184.108.40.206.2.2 Saudi Arabia
- 220.127.116.11.2.3 South Africa
- 18.104.22.168.2.4 Rest of Middle East and Africa
- 6.3.2 For CRO Segment
- 22.214.171.124 North America
- 126.96.36.199 Europe
- 188.8.131.52 Asia-Pacific
- 184.108.40.206 Latin America
- 220.127.116.11 Middle East and Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Vendor Market Share Analysis
- 7.2 Company Profiles
- 7.2.1 CMO Vendors
- 18.104.22.168 Catalent Inc.
- 22.214.171.124 Recipharm AB
- 126.96.36.199 Jubilant Life Sciences Ltd.
- 188.8.131.52 Patheon Inc.
- 184.108.40.206 Boehringer Ingelheim Group
- 220.127.116.11 Pfizer CentreSource
- 18.104.22.168 Aenova Holding GmbH
- 22.214.171.124 Famar SA
- 126.96.36.199 Baxter Biopharma Solutions
- 188.8.131.52 Lonza Group
- 7.2.2 CRO Vendors
- 184.108.40.206 CMIC Holdings Co. Ltd
- 220.127.116.11 Covance Inc.
- 18.104.22.168 Syneos Health Inc.
- 22.214.171.124 LSK Global Pharma Service Co Ltd.
- 126.96.36.199 Novotech Pty Ltd.
- 188.8.131.52 PAREXEL International Corporation
- 184.108.40.206 Pharmaceutical Product Development LLC
- 220.127.116.11 PRA Health Sciences Inc.
- 18.104.22.168 Quanticate Ltd.
- 22.214.171.124 IQVIA Holdings Inc.
- 126.96.36.199 SGS SA (SGS Life Sciences)
- 188.8.131.52 Hangzhou Tigermed Consulting Co Ltd.
- 184.108.40.206 Samsung Bioepis Co. Ltd.
- 220.127.116.11 WuXi AppTec Inc.
- 18.104.22.168 Sagimet Biosciences (3V Biosciences Inc.)
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS