Visiongain has published a new report entitled Biological Drug API Manufacturing Services Market Report 2023-2033: Forecasts by Manufacturing Type (Outsourced, In-house), by Application (Vaccines, mABs, Insulin Analogues, Interferon Therapies, Human Growth Hormones, Others), by Expression Platform (Mammalian Cell Cultures, Microbial Fermentations, Others) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The biological drug API manufacturing services market is valued at US$8,006.7 million in 2023 and is projected to grow at a CAGR of 11.6% during the forecast period 2023-2033.
The biological drug API manufacturing services industry has grown rapidly as a result of the revolution in drug development brought about by the rapidly expanding field of biotechnology. Complex biologics with higher specificity and efficacy can now be produced thanks to advances in genetic engineering, cell culture methods, and bioprocessing, as well as a better understanding of biological systems.
New biological drug APIs have been made possible by the industry's enhanced research and development (R&D) capabilities as a result of the advancement of biotechnology. The creation of recombinant proteins, vaccines, gene therapies, and monoclonal antibodies are examples of this advancement. Because of the industry's ability to leverage these technological advancements, a wider range of medical needs can now be met by more advanced and focused therapeutic options.
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How has COVID-19 had a Significant Impact on the Biological Drug API Manufacturing Services Market?
The COVID-19 pandemic significantly impacted the pharmaceutical industry, including the segment involved in the production of biological drug Active Pharmaceutical Ingredients (APIs). Biological drugs, including vaccines, monoclonal antibodies, and other biologics, play a crucial role in treating various diseases. The pandemic posed several challenges and opportunities for the biological drug API contract manufacturing industry, reshaping its landscape in numerous ways.
The pandemic disrupted global supply chains, causing delays in raw material procurement, manufacturing, and distribution. This situation affected the timely production of biological drug APIs, leading to shortages and constraints in meeting demand.
COVID-19 highlighted the importance of biologics, especially vaccines, in controlling and preventing infectious diseases. The urgent need for vaccines against the novel coronavirus resulted in a surge in demand for contract manufacturers capable of producing biologics at scale.
Many pharmaceutical companies diverted resources towards COVID-19-related research and development, potentially impacting their investment in other therapeutic areas. This shift might have influenced the type and volume of contracts for biological drug API manufacturing.
To mitigate disruptions and streamline operations, contract manufacturers accelerated the adoption of digital technologies. Virtual collaborations, remote monitoring of manufacturing processes, and data analytics became pivotal for ensuring continuity and efficiency in production.
Regulatory bodies faced the challenge of ensuring the quality and safety of drugs while accommodating the urgent need for COVID-19-related therapies. Flexibility in regulatory procedures was observed to expedite the approval processes for new drugs and manufacturing facilities.
The surge in demand for biologics prompted several contract manufacturers to invest in expanding their production capacities. This expansion aimed to meet the growing demand and ensure a more robust response to future healthcare crises.
The pandemic underscored the importance of risk mitigation and business resilience. Contract manufacturers started diversifying their supplier base, enhancing inventory management strategies, and building redundancies to safeguard against future disruptions.
The increased public awareness and acceptance of biologics, coupled with advancements in technology, opened doors for the long-term growth of the biological drug API contract manufacturing industry. This growth is anticipated to continue as healthcare systems emphasize biologics in disease treatment and prevention.
How will this Report Benefit you?
Visiongain’s 261-page report provides 89 tables, 135 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the biological drug API manufacturing services market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Biological Drug API Manufacturing Services. Get financial analysis of the overall market and different segments including manufacturing type, application, expression platform and capture higher market share. We believe that there are strong opportunities in this fast-growing biological drug API manufacturing services market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Outsourcing as a Driver for Market Growth
Contract Development and Manufacturing Organizations (CDMOs) offer vital services to the pharmaceutical and biotech sectors by providing extra capacity for development and manufacturing, specialized capabilities, and potential cost efficiencies compared to in-house production. In recent decades, there has been a notable trend among pharmaceutical companies to outsource a larger portion of their discovery, development, and manufacturing tasks. Outsourcing proves effective in reducing capital expenses and gaining access to capacities and capabilities not available internally. However, the inclination to outsource varies across different segments of the biopharmaceutical market.
Small biotech companies often rely on CDMOs to manufacture their developmental products as they progress through the pipeline. These companies typically lack the technical expertise and manufacturing capabilities needed and find it financially challenging to build these capacities without a steady revenue stream reliant on investment capital.
Contrastingly, considerations for larger pharmaceutical companies differ, often contingent upon the type of product being produced. Small molecule APIs are more frequently outsourced compared to biologics due to their relatively simpler manufacturing processes and smoother tech transfer. This instills more confidence in CDMOs' ability to efficiently produce them within the required quality and timelines. Additionally, pharma companies might opt to source APIs from multiple suppliers to ensure a secure supply chain and might choose a CDMO as a secondary supply source. The availability of ample standard small molecule manufacturing capacity in the market makes contract manufacturers an appealing option from a pricing perspective.
The manufacturing of biologics presents distinct challenges compared to small molecules. Biologics are significantly more technologically intricate to produce, leading to reduced price sensitivity. While start-up biotech companies heavily rely on outsourcing, larger pharmaceutical companies tend to prefer keeping biologics API manufacturing in-house. This preference is driven partially by the intellectual property linked to cell strains and the manufacturing process. Furthermore, concerns about quality assurance and supply certainty are more pronounced for these intricate, high-value APIs that can yield substantial profits.
Regulatory Support and Favourable Government Initiatives
Supportive regulatory frameworks and government initiatives have played a pivotal role in fostering growth within the biological drug API manufacturing services industry. Regulatory agencies worldwide have established guidelines ensuring the safety, quality, and efficacy of biologics, providing a clear pathway for their development and commercialization.
Furthermore, governments and regulatory bodies offer incentives, grants, and fast-track approvals to encourage the research, development, and manufacturing of biologics. These initiatives facilitate innovation, investment, and collaboration within the industry, driving its expansion.
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Where are the Market Opportunities?
Advancements in Bioprocessing Techniques
In the field of biological drug API manufacturing, contract manufacturers have a lot of opportunities due to the advancement of bioprocessing techniques. Innovations in biotechnology have produced novel approaches to the production of biological medications over time. These techniques, which enable the creation of complex biologics like monoclonal antibodies, vaccines, and therapeutic proteins, include genetic engineering, recombinant DNA technology, and cell culture technologies.
Biological API contract manufacturing organisations (CMOs) can benefit from these developments by consistently improving their manufacturing facilities and procedures. Adopting state-of-the-art bioprocessing technologies—like continuous manufacturing methods, single-use bioreactors, and perfusion systems—improves productivity, lowers expenses, and raises API quality. Moreover, CMOs can streamline production through investments in process intensification and optimisation techniques, which results in higher yields and shorter manufacturing timelines.
CMOs can position themselves as industry leaders in the provision of high-quality, reasonably priced biological drug APIs, meeting the growing demand for these sophisticated therapies, by putting an emphasis on innovation and process efficiency.
Customization and Flexibility in Manufacturing
Since biological drugs are inherently variable, customised manufacturing techniques are required. This gives CMOs the chance to provide adaptable manufacturing solutions designed to satisfy the unique requirements of various treatment candidates. Since maintaining consistency and quality in the manufacturing process is often necessary for biological drugs, CMOs can thrive by offering customised production processes.
Pharmaceutical companies developing biological therapies can have a variety of needs, and CMOs can meet those needs by providing a range of services like process development, scale-up capabilities, and adaptive manufacturing strategies. CMOs can position themselves as trustworthy collaborators who can provide customised solutions for a range of biological drug pipelines by being flexible in their ability to adjust to different production scales, accommodate different cell lines, and optimise conditions for particular drug substances.
Competitive Landscape
The major players operating in the biological drug API manufacturing services market are AbbVie Inc., Boehringer Ingelheim International GmbH, Catalent, Inc., Cytovance Biologics, FUJIFILM Diosynth Biotechnologies, Lonza, Piramal Pharma Solutions, Samsung Biologics and Thermo Fisher Scientific. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
Recent Developments
- On 24th October 2023, Samsung Biologics and Kurma Partners, a European venture capital firm in healthcare and biotechnology, announced a strategic partnership for the development and manufacturing of biologics for Kurma Partners’ portfolio companies.
- On 5th October 2023, Lonza announced an extension of a long-term collaboration with a major global biopharmaceutical partner. The extended agreement will increase the current dedicated bioconjugation capacity fourfold by adding two new bioconjugation suites for the commercial supply of ADCs at Lonza's Ibex® Dedicate Biopark in Visp (CH).
- On 16th March 2023, Catalent and Bhami Research Laboratory (BRL), announced a licensing agreement that will provide Catalent with access to BRL’s formulation technology to help enable the subcutaneous delivery of high-concentration biologic therapies.
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To find more Visiongain research reports on the Pharma sector, click on the following links:
- Biologics Market Report 2024-2034
- Contract Manufacturing Outsourcing (CMO) of Sterile Injectable Drugs Market Report 2024-2034
- Active Pharmaceutical Ingredients (APIs) Market Report 2023-2033
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