Pharmaceutical CDMO Industry Overview

The global pharmaceutical Contract Development and Manufacturing Organization (CDMO) market was valued at approximately USD 146.0 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 7.2% from 2024 through 2030. This growth is primarily fueled by rising investments from CDMOs aimed at expanding new drug development capabilities and meeting the increasing demand for novel therapies. Several factors underpin this upward trend, including escalating investments in pharmaceutical Research & Development, a growing demand for genetic drugs, the rising incidence of cancer and age-related disorders, and an expanding need for advanced therapeutic options.

Additionally, increased demand for biosimilars, biologics, personalized medicine, orphan drugs, companion diagnostics, and adaptive trial designs is anticipated to further drive the CDMO market. As pharmaceutical companies explore innovative treatment avenues, the need for compliance with stringent regulatory standards intensifies, prompting higher demand for specialized CDMO providers who can effectively manage contract development and manufacturing responsibilities.

Key initiatives in the sector also contribute significantly to market expansion. For example, in January 2022, Lonza entered a partnership with HaemaLogiX, a company specializing in monoclonal antibody development, to produce KappaMab, a myeloma drug candidate. Furthermore, in December 2023, Innovent Biologics, Inc. extended its licensing agreement with Synaffix B.V., part of Lonza, to advance their clinical-stage platform technology for antibody-drug conjugates (ADCs) that exhibit a superior therapeutic index. These biopharmaceutical collaborations underscore the momentum driving the growth of the pharmaceutical CDMO sector.

Within many pharmaceutical companies, the emphasis on innovation and swift progression to clinical trials remains paramount. Small and specialty pharmaceutical firms increasingly rely on third-party service providers to fulfill these critical needs. Many Contract Research Organizations (CROs) and CDMOs now offer comprehensive, one-stop-shop solutions, managing all stages from Active Pharmaceutical Ingredient (API) development to dosage form creation, encompassing the entire journey from early-stage development to product commercialization. To deliver these services effectively, CDMOs require an extensive suite of enabling technologies and specialized handling capabilities tailored to unique challenges. Despite the holistic services provided, there is significant variability in product design and development expertise among different CDMO players, which can be crucial for scaling product concepts and ensuring successful market entry.

Gather more insights about the market drivers, restrains and growth of the Pharmaceutical CDMO Market

Regional Insights:

North America Pharmaceutical CDMO Market Trends

• Fastest CAGR Growth: The North American pharmaceutical CDMO market is projected to grow at a rapid CAGR of 6.5% during the forecast period.
• R&D Investment: Increased investment in R&D of new drugs by pharmaceutical companies drives demand for contract development and manufacturing services.
• Market Growth Factors:
• Expansion of the pharmaceutical industry in the U.S. and Canada.
• Significant presence of key market players and clinical trials.
• Stringent regulatory requirements in the U.S. and Canada necessitate specialized knowledge and compliance expertise, favoring CDMOs for navigating these complexities.

U.S. Pharmaceutical CDMO Market Trends

• Largest Market Share in 2023: The U.S. pharmaceutical CDMO market dominated in 2023.
• Outsourcing Trend: Increasing outsourcing of development and manufacturing activities by pharmaceutical companies helps reduce costs, accelerate time-to-market, and access specialized expertise.
• Market Expansion: CDMOs are expanding their capacities to meet the rising demand for outsourcing services.
• Notable Development: In May 2023, CordenPharma launched synthetic oligonucleotide manufacturing at its Colorado facility, highlighting industry growth and innovation.

Europe Pharmaceutical CDMO Market Trends

• Significant Growth Projection: The European pharmaceutical CDMO market is expected to grow at a noteworthy CAGR during the forecast period.
• Increased Outsourcing: A rise in pharmaceutical activities and growing preference for outsourcing contribute to market demand.
• Germany Market Overview:
• Held the largest share in 2023.
• Market consolidation through acquisitions of smaller companies by larger ones enhances operational efficiency and competitiveness.
• UK Market Outlook:
• Anticipated to grow at the fastest CAGR over the forecast period.
• Key players such as Lonza Group, Piramal Pharma Solutions, and AbbVie Contract Manufacturing actively provide contract development and manufacturing services.

Asia Pacific Pharmaceutical CDMO Market Trends

• Largest Revenue Share in 2023: The Asia Pacific pharmaceutical CDMO market led globally with a revenue share of 37.64% in 2023.
• Growth Drivers:
• Improved insurance schemes and economic conditions facilitate patients' ability to afford pharmaceutical costs.
• Countries like Singapore, China, and India are emerging as major hubs for pharmaceutical manufacturing due to expanding capabilities.
• Country-Specific Insights:
• China:
• Largest market share in 2023.
• Growth driven by partnerships between CDMOs and pharmaceutical companies.
• Example: In September 2023, Chime Biologics partnered with Kings Pharm from South Korea.
• Japan:
• Fastest CAGR expected over the forecast period.
• Advancements in drug delivery technologies, such as targeted drug delivery and sustained-release dosage forms, fuel market growth.
• India:
• Anticipated to grow at the fastest CAGR over the forecast period.
• Key growth factors include low operational costs, availability of industry experts, and WHO-cGMP-compliant facilities.

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• The global biosimilars market size was valued at USD 21.8 billion in 2022 and is expected to grow at a compound annual growth rate(CAGR) of 15.9% over the forecast period.
• The global biologics market size was valued at USD 461.74 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030.

Key Pharmaceutical CDMO Company Insights

The major players operating across the market focus on adopting in-organic strategic initiatives such as mergers, partnerships, acquisitions, etc. The prominent strategies companies adopt are service launches, mergers & acquisitions/joint ventures, mergers, partnership & agreements, expansions, and others to increase market presence & revenue and gain a competitive edge driving market growth. Hence, increasing adoption of in-organic strategic initiatives is highly anticipated to boost the market share of prominent players.

Key Pharmaceutical CDMO Companies:

The following are the leading companies in the pharmaceutical CDMO market. These companies collectively hold the largest market share and dictate industry trends.

• Lonza
• Thermo Fisher Scientific, Inc.
• Recipharm AB
• Laboratory Corporation of America Holdings (LabCorp)
• Catalent, Inc.
• WuXi AppTec, Inc.
• Samsung Biologics
• Piramal Pharma Solutions
• Siegfried Holding AG
• CordenPharma International
• Cambrex Corporation
• Bushu Pharmaceuticals Ltd.
• Nipro Corporation
• Sequens
• EuroAPI
• Hovione
• Axplora
• Curia
• Dottikon
• Almac
• FIS - Fabbrica Italiana Sintetici S.p.A.
• Evonik
• Carbogen Amcis
• Farmhispania
• Uquifa
• AjiBio
• Pfizer Centre One
• Fareva
• Sterling
• Veranova

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