Oct 5, 2021   SOURCE: BusinessWire

Global Pharmaceutical Contract Manufacturing Organization Market Growth, Trends and Forecasts 2021-2026: A $195.70 Billion Market by 2026 - ResearchAndMarkets.com

The "Pharmaceutical Contract Manufacturing Organization (CMO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.

The global pharmaceutical CMO market was valued at USD 120.29 billion in 2020, and it is expected to reach USD 195.70 billion by 2026, registering a CAGR of 7.85% from 2021 to 2026.

The COVID-19 pandemic has had a beneficial effect on contract manufacturing services overall. There were multiple opportunities for CMOs in clinical trial manufacturing, where there is a large pipeline of drugs and both mega- and small-cap companies outsource to partners for pipeline advancement. The pandemic has also freed up internal capacity at big pharma, as some have outsourced some existing products, such as Pfizer, which outsourced many internally manufactured drugs to CMOs.

Key Highlights

  • CMOs are consolidating as a means of enhancing profitability in the competitive market. Through consolidation, the large CMOs could expand their geographical presence and penetrate multiple markets. 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, China's most extensive biologics facility with a capacity of 120,000 liters. The new facility is designed to develop and manufacture its biologics for the local market and perform contract work for Chinese biotech companies' emerging wave.
  • Additionally, the pharmaceutical companies have been directing their priorities toward the core areas of competency. 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.
  • Furthermore, the complexity of the biopharmaceuticals, coupled with the highly personalized medical therapies and devices, drive the increased complexity in the operations of the supply chain 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.
  • Moreover, contract manufacturing services are estimated to dominate the market for research services in the pharmaceutical sector, as the increased demand is expected for active pharmaceutical ingredients (API) and finished dose formulations in the future. The Asia Pacific region, particularly India and China, is the prominent region in the CMO industry due to considerably lower manufacturing costs than in North America and Europe and favorable regulations. While India and China have established themselves as significant suppliers of API manufacturing services, the US remains the primary hub for pharmaceutical development outsourcing.
  • The most significant 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. India's CMO market is expected to grow due to the country's large population base and a sharp increase in demand for injectable drugs, especially in cancer research.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.3 Industry Value Chain Analysis
4.4 Industry Policies
4.5 Market Drivers
4.5.1 Increasing Outsourcing Volume by Pharmaceutical Companies
4.5.2 Increasing Investment in R&D
4.6 Market Restraints
4.6.1 Increasing Lead Time and Logistics Costs
4.6.2 Stringent Regulatory Requirements
4.6.3 Capacity Utilization Issues Affecting the Profitability of CMOs
4.7 Assessment of Impact of COVID-19 on the Market

5 TECHNOLOGY SNAPSHOT

6 MARKET SEGMENTATION

7 COMPETITIVE LANDSCAPE - VENDOR MARKET SHARE

8 COMPETITIVE LANDSCAPE

  • Catalent Inc.
  • Recipharm AB
  • Jubilant Biosys Ltd.(Jubilant Pharmova Ltd)
  • Patheon Inc. (Thermo Fisher Scientific Inc.)
  • Boehringer Ingelheim Group
  • Pfizer CentreSource (Pfizer Inc.)
  • Aenova Group
  • Famar SA
  • Baxter Biopharma Solutions (Baxter International Inc.)
  • Lonza Group AG

     

9 INVESTMENT ANALYSIS

10 FUTURE OF THE GLOBAL PHARMACEUTICAL CONTRACT MANUFACTURING MARKET

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