Dublin, Feb. 14, 2023 (GLOBE NEWSWIRE) -- The "Pharmaceutical Contract Development And Manufacturing Organization (CMO) Global Market Report 2023" report has been added to ResearchAndMarkets.com's offering.
The global pharmaceutical contract development and manufacturing organization (CMO) market is expected to grow from $114.36 billion in 2021 to $122.31 billion in 2022 at a compound annual growth rate (CAGR) of 7%. The pharmaceutical contract development and manufacturing market are expected to reach $159.94 billion in 2026 at a CAGR of 6.9%.
North America was the largest region in the pharmaceutical contract development and manufacturing market in 2022. Middle East is expected to be the fastest growing region in the forecast period. The regions covered in the pharmaceutical contract development and manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of pharmaceutical contract development and manufacturing organization (CMO) are active pharmaceutical ingredient (API) manufacturing, finished dosage formulation (FDF) development and manufacturing, and secondary packaging. The active pharmaceutical ingredient (API) manufacturing includes the manufacturing of the part of any drug that produces the desired effects. The various research phases include preclinical, phase I, phase II, phase III, and phase IV. The different end-use sectors include big pharmaceutical companies, generic pharmaceutical companies, and small & medium-sized pharmaceutical companies.
The growth of the pharmaceutical contract development and manufacturing market is driven by the increase in the demand for medicines across the globe. The high prevalence of diseases and the need for a longer lifespan increased the demand for medicines pushing the pharmaceutical companies to increase the production of existing drugs and raise the investment in their R&D to promote the development of new drugs.
This impels the pharmaceutical companies to collaborate with contract manufacturing organizations (CMOs) as a way to lower operational costs, thus, increasing the demand for pharmaceutical contract development and manufacturing market. According to Alkermes plc, a biopharmaceutical company indicates that pharmaceutical contract manufacturing will emerge as a strategic option for many companies ranging from very large to smaller specialty pharma entities and this mostly will happen because the pharmaceuticals companies are looking for cost-cutting.
The pharmaceutical contract development and manufacturing market are restricted by the poor-capacity utilization of manufacturing facilities. The capacity utilization is calculated considering the full potential capacity of the production plant. The poor-capacity utilization of the production plant is caused due to the inefficiency of different sub-processes in the production line which results in low production. The low production output results in low revenue generation for the production unit, affecting the overall pharmaceutical contract development and manufacturing market.
For instance, in January 2020, according to an article shared by Economic Times, an India-based English-language business-focused daily newspaper, The 1,500 API manufacturing facilities in India, according to the country's drug regulatory organisation, are only operating at 40% of their potential. Therefore, the usage of capacity of the production plant negatively affects the pharmaceutical contract development and manufacturing market.
The companies in the pharmaceutical contract development and manufacturing market are investing in acquiring and forming alliances with other companies in the market. The pharmaceutical contract development and manufacturing companies are following the trend of merger and acquisition to expand their global market reach to meet the client needs, increase their production capabilities while maintaining cost efficiencies, and get access to the latest technology and new services.
The high levels of merger and acquisition activities are resulting in the consolidation of the contract service providers.
For instance, in July 2022, Pharma Nobis, a US-based provider of contract manufacturing and private label services, acquired Fagron's U.S. contract manufacturing business for an undisclosed amount. Through this acquisition, Pharma Nobis is expected to offer contract manufacturing and private label services to American retailers and consumer healthcare corporations. 20% of the company will continue to be owned by Fagron.
Scope
Markets Covered:
1) By Type: Active Pharmaceutical Ingredient (API) Manufacturing; Finished Dosage Formulation (FDF) Development And Manufacturing; Secondary Packaging
2) By Research Phase: Preclinical; Phase I; Phase II; Phase III; Phase IV
3) By End-User: Big Pharmaceutical Companies; Generic Pharmaceutical Companies; Small & Medium-Sized Pharmaceutical Companies
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2022 - 2026 |
| Estimated Market Value (USD) in 2022 | $122.31 billion |
| Forecasted Market Value (USD) by 2026 | $159.94 billion |
| Compound Annual Growth Rate | 6.9% |
| Regions Covered | Global |
A selection of companies mentioned in this report includes
- Recipharm AB
- Pfizer Inc.
- Boehringer Ingelheim International GmbH.
- Aenova Group
- Famar
- Jubilant Life Sciences Limited
- Catalent Pharma Solutions
- Chemicals Limited
- Dishman Pharmaceuticals
- HAUPT Pharma AG
- Kemwell Pvt. Ltd.
- Nipro Corp.
- NextPharma
- Royal DSM N.V
- Althea Technologies
- Thermo Fisher Scientific Inc.
- Lonza Group Ltd.
- AbbVie Inc.
- Consort Medical plc
- Almac Group
- Siegfried Holding AG
- Evonik Industries AG
- Vetter Pharma International GMBH
For more information about this report visit https://www.researchandmarkets.com/r/dk1ht8
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