Dublin, Dec. 15, 2021 (GLOBE NEWSWIRE) -- The "Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)" report has been added to ResearchAndMarkets.com's offering.
The global pharmaceutical CDMO market (henceforth referred to as the market studied) was valued at USD 160.12 billion in 2020, and it is expected to reach USD 236.61 billion by 2026, registering a CAGR of 6.5% during the forecast period.
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 the short term due to stockpiles of pharmaceuticals, APIs globally. Since lockdowns were imposed, supply from Chinese manufacturing facilities was significantly reduced. The major extent has been a number of typical workforces who were unable to return to work, which led to underutilized efficiency across multiple levels in the industry. Furthermore, short-term scarcities were announced by the US Food and Drug Administration (FDA) back in February 2020 due to API manufacturing delays.
Industry Highlights
The biggest factor boosting the growth of CMOs in the pharmaceutical industry in the Asia-Pacific region is the growing need for robust processes and production technologies, which have proven highly effective in meeting regulatory requirements.
CMOs have been consolidating as a means of improving profitability in the competitive market. Through consolidation, the large CMOs can expand their geographical presence and penetrate into niche markets. The small CMOs can use the technical expertise and resources of larger CMOs.
For instance, in January 2020, South Korea's Celltrion, a biosimilar maker, announced plans to invest USD 514 million over five years for its new plant in Wuhan, which will be China's biggest biologics facility with a capacity of 120,000 liters. The new facility is designed to develop and manufacture its own biologics for the local market and performing contract work for the emerging wave of Chinese biotech companies.
Also, Bora Pharmaceuticals is one of the premier pharmaceutical companies in Taiwan. The company's operations cover the entire pharmaceutical supply chain, from R&D all the way to sales and distribution. With its US FDA, MHRA, and PIC/S certified facilities, Bora offers R&D, CDMO, and CMO services to Taiwan's domestic and global pharmaceutical companies. The company has recently established its footprint in the North American market by setting up a sales office in Delaware.
India's CMO market is expected to grow not only due to the country's large population base but also due to a sharp increase in demand for injectable drugs, especially in cancer research. With the injectable drugs industry providing substantially higher returns as compared to other drug formulation types, the higher ROI and therapeutic efficiency are anticipated to boost the growth of the CMO sector in the country.
R&D is one of the largest key areas of investment in the pharmaceutical and biotech industry. Companies spend a high share of their capital and profits on R&D to produce better drugs at cheaper costs. This provides the pharmaceutical companies with a considerable competitive advantage, as price and function are the only competitive variables in the pharmaceutical and biotechnology market.
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 at a 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.
They often partner with drug development companies rather than completely taking responsibility for R&D activities. This helps the CROs to gain more clients, as they gain valuable knowledge and experiences from these collaborations with innovative drug companies.
Additionally, the business models followed by CROs are putting them at a considerable advantage in the current market scenario. Currently, CROs either run in a preferred provider model or make strategic alliance partnerships with pharmaceutical companies. In the preferred provider model, the pharmaceutical company or the developer may get an exclusive price for CRO services in exchange for guaranteeing a big part of the work to be outsourced to the CROs.
Key Market Trends
- Increasing Investments in R&D to Drive the Industry
- North America Estimated to Hold the Largest Regional Share
Competitive Landscape
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 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, Jubilant Life Sciences Ltd.
- January 2021- Samsung Bioepis Co. Ltd announced its expansion into the Asia-Pacific region in Korea with a 52,000 square feet campus to become the hub of Samsung Bioepis' drive for accelerated development of next-generation biologic medicines.
- January 2021- SGS announced the acquisition of the lab facilities of ISL, a laboratory providing analytical services for pharmaceutical products and substances based in Ringaskiddy (Cork), Ireland. Post-transfer, ISL becomes the strategic component of SGS's global life sciences laboratory network, and ISL is expected to continue pharmaceutical quality control testing and support Novartis' major manufacturing operations.
- January 2021- Parexel and Signify Health today announced a strategic collaboration to provide customers with new solutions to enable access to a more diverse and traditionally underrepresented population for their clinical trials. The partnership will focus on improving patient access to clinical trials, bringing studies to patients in their own homes.
Key Topics Covered
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Insights
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 Impact of COVID-19 on Pharmaceutical Industry
5 Market Dynamics
5.1 Market Drivers
5.2 Market Restraints
5.3 Emphasis on Solid-based Oral Dosage Formulations
5.4 Qualitative Coverage on the 3D Printing Developments in the OSD Segment
6 Technology Snapshot
6.1 Dosage Formulation Technologies
6.2 Dosage Forms by Route of Administration
6.3 Key Considerations for Outsourcing of Pharmaceutical R&D
6.4 Major Segments in CRO - Bio Analytical Testing, Central Laboratory Testing, and cGMP Testing
7 Market Segmentation
7.1 By Service Type - CMO Segment
7.1.1 Active Pharmaceutical Ingredient (API) Manufacturing
7.1.2 Finished Dosage Formulation (FDF) Development and Manufacturing
7.1.2.1 Solid Dose Formulation
7.1.2.2 Liquid Dose Formulation
7.1.2.3 Injectable Dose Formulation
7.1.3 Secondary Packaging
7.2 By Research Phase - CRO Segment
7.2.1 Pre-clinical
7.2.2 Phase I
7.2.3 Phase II
7.2.4 Phase III
7.2.5 Phase IV
7.3 By Geography - Global Pharmaceutical CMO
7.3.1 North America
7.3.1.1 Segmentation by Service Type
7.3.1.2 Segmentation by Country
7.3.2 Europe
7.3.3 Asia-Pacific
7.3.4 Latin America
7.3.5 Middle East & Africa
7.4 By Geography - Global Pharmaceutical CRO
8 Competitive Landscape - Company Profiles
8.1 CMO Vendors
8.1.1 Catalent Inc.
8.1.2 Recipharm AB
8.1.3 Jubilant Life Sciences Ltd.
8.1.4 Patheon Inc.
8.1.5 Boehringer Ingelheim Group
8.1.6 Pfizer CentreSource
8.1.7 Aenova Holding GmbH
8.1.8 Famar SA
8.1.9 Baxter Biopharma Solutions
8.1.10 Lonza Group
8.2 CRO Vendors
8.2.1 CMIC Holdings Co. Ltd.
8.2.2 Covance Inc.
8.2.3 Syneos Health Inc.
8.2.4 LSK Global Pharma Service Co. Ltd.
8.2.5 Novotech Pty. Ltd.
8.2.6 PAREXEL International Corporation
8.2.7 Pharmaceutical Product Development LLC
8.2.8 PRA Health Sciences Inc.
8.2.9 Quanticate Ltd.
8.2.10 IQVIA Holdings Inc.
8.2.11 SGS Life Science Services SA
8.2.12 Hangzhou Tigermed Consulting Co. Ltd.
8.2.13 Samsung Bioepis Co. Ltd.
8.2.14 WuXi AppTec Inc.
8.2.15 Sagimet Biosciences (3V Biosciences Inc.)
9 Investment Scenario
10 Future Outlook of the Global Pharmaceutical Contract Development and Manufacturing Market
For more information about this report visit https://www.researchandmarkets.com/r/mb8yrx
