Global Pharmaceutical Contract Development and Manufacturing Market: Increasing demand as a consequence of ongoing patent cliff of the biologic drugs is expected to fuel demand.

Published Date: 20/05/2021

The global pharmaceutical contract development and manufacturing market is projected to reach USD 164.26 billion by 2027 from USD 100.7 billion in 2020, at a CAGR of 7.2 %. Cost saving and time saving benefits associated with the implementation of outsourcing is responsible for driving the industrial growth.

Companies are investing in infrastructure, personnel, and technology in order to gain significant share of the outsourcing revenue. Increasing demand as a consequence of ongoing patent cliff of the biologic drugs is expected to fuel demand. Presence of end-to-end service providers that are engaged in providing value added services for an integrated or risk sharing business model is expected to bolster progress in this industry. Moreover, new product launches and novel drug delivery mechanisms are anticipated to drive outsourcing demand.

The industry has been alternating between the cycles of inadequate and excessive production capacity for contract as well as captive manufacturers. Hence, it is important for Contract Manufacturing Organizations (CMOs) to make cautious decisions pertaining to capacity expansion and choice of deals.

Changing product pipeline is also responsible for the growth of service based market, with the rising importance of biologics, generics, and biosimilars. The companies are spending more on outsourcing for their growing pipeline of biologics for the eradication of chronic disorders. “One-stop-shop” offered by the CMO’s for the promotion of portfolio of complete range of products is anticipated to influence growth of CMOs. Furthermore, differentiation and consolidation strategies adopted by companies can be attributed for projected progress.
The larger CMOs are embracing the trend of moving and focusing on the niche areas of biopharmaceutical and pharmaceutical development. They are focusing on the establishment of regulatory pathways for transgenic based product development. However, the companies are willing to restrict the outsourcing for the manufacture of complex and big moieties. They are in an opinion of in-house production rather than outsource owing to the specific requirements.

In addition to this, dynamic changes witnessed in this sector coupled with severe pressure over the margins are anticipated to restrain growth to considerable extent. Stringent and complex regulatory requirements are also attributive for steady progress.

The prominent players in the market include Thermo Fisher Scientific Inc. (US), Catalent, Inc. (US), Lonza Group Ltd (Switzerland), Recipharm AB (Sweden), Vetter Pharma International GMBH (Germany), FAMAR Health Care Services (Greece), AbbVie Inc. (US), Aenova Group (Germany), Consort Medical plc (UK), Almac Group (UK), Siegfried Holding AG (Switzerland), BoehringerIngelheim International GmbH (Germany), and Evonik Industries AG (Germany).

The key regions studied in the research report are Asia Pacific, Europe, North America, and Rest of the World. North America and Europe are anticipated to represent a large share in the global pharmaceutical contract manufacturing market. The growth of these regions is supplemented by the growing geriatric population and high uptake of biologics. The increasing research activities by biotechnology companies and the rising demand for generics are also contributing to the growth of the regions. The U.S. will be a major revenue contributor in the North America market. The Asia Pacific region is estimated to emerge as a lucrative market during the forecast period owing to the improving healthcare infrastructure and increasing favorable government initiatives.