Contract Development and Manufacturing Organization (CDMO) Market Size, Share & Industry Analysis, By Service {By CMO (API, Finished Product {Solid Dosage Forms, Injectables, and Others}, and Packaging)} {By CRO (Discovery, Preclinical, Clinical Trial, and Laboratory Services)} and Regional Forecast, 2019-2026

The global contract development and manufacturing organization (CDMO) market size stood at USD 130.8 billion in 2018 and is projected to reach USD 278.98 billion by 2026, exhibiting a CAGR of 10.0% during the forecast period.

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The growing demand for novel therapies is leading many small & large pharmaceutical companies worldwide to strategically tie-up with many contract development and manufacturing organizations (CDMO) to compress the timelines associated with the drug development process. Many CDMOs are currently delivering services such as drug discovery, preclinical & clinical trials, API and finished product manufacturing, dosage form development etc.  These services cover the whole value chain from drug discovery to commercialization. The growing complexities in therapies and lack of in-house manufacturing capabilities in many small pharmaceutical companies are anticipated to boost the CDMO services market growth during the forecast period.

MARKET TRENDS

CDMO Industry is Undergoing Consolidation at a Rapid Pace

CDMOs (Contract development and manufacturing organizations) is currently a fragmented market. There has been a greater need among pharmaceutical companies for rapid innovations to develop effective process solutions to enhance the drug development process. Many contract development and manufacturing organizations companies are seeking more significant opportunities for strengthening their service offerings by choosing to merge with small & large pharma & biotech firms, along with many life-science companies.  In October 2018, Recipharm AB acquired Sanofi’s inhalation contract manufacturing business, intending to expand its offerings with the development of innovative respiratory products for the treatment of asthma and chronic obstructive pulmonary disease (COPD). Mergers & acquisitions strategies are not only the platform through which CDMOs are looking to boost competitiveness but also a way to expand their geographical footprints by offering end to end drug development & manufacturing services, thus reducing the overall operational cost.

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MARKET DRIVERS

Growing Demand for Pharmaceutical Products is Projected to Drive the Growth

The burden of chronic diseases across the globe is rising at a significant rate owing to the rise in population, growing adoption of westernized lifestyle and increasing economic development. According to the World Health Organization (WHO), the proportion of the burden of non-communicable diseases (NCDs) is anticipated to reach to 57% in 2020. The growing prevalence of chronic diseases and the rise in geriatric population are encouraging pharmaceutical companies to introduce effective pharmaceutical products to accelerate the treatment procedure. Moreover, the capabilities of CDMOs to simplify the pharma supply chain and adoption of the one-stop-shop model to bring effective drug products in the market are likely to propel the CDMO market growth during the forecast period.

The growing therapeutic applications of biologics and increased share of pipeline molecules are anticipated to boost the CDMO sector growth during the forthcoming years. Moreover, the increasing investments in infrastructure and the rise in capabilities of CDMOs to provide fully integrated services via innovative technologies are likely to fuel the contract development & manufacturing organizations sector growth. Furthermore, outsourcing of manufacturing activities to CDMOs has resulted into the speedy regulatory approvals owing to the availability state of art R&D & manufacturing platforms and skilled resources.

Rise in Investments and Strategic Collaborations to Support Contract Development and Manufacturing organizations (CDMO) Market Growth

Many CDMOs are strongly focusing on capital investments for the development of novel compounds and expand their geographical footprints. In October 2017, CordenPharma International announced its strategic investment of €3.7 million in its small molecule API manufacturing site located in Switzerland. Moreover, an increase in the number of new players in the market through collaborations is another key factor anticipated to fuel the CDMO market growth during the forecast period.

MARKET RESTRAINT

Stringent Government Regulations to Restrict the Market Growth

The presence of strict government regulations and reduction in the approvals of many small molecules and biologics in developed nations are the major factors likely to hamper the CDMO market growth during the forecast period. Moreover, small scale CDMOs lacking state-of-the-art equipment are likely to face increased process errors, can lack quality, and face increase pricing challenges, which is expected to hinder the market growth.

SEGMENTATION

By Service Analysis

API Manufacturing Services in CMO Segment Dominated the Global Market

Based on service, the CDMO market is segmented into the contract manufacturing organization (CMO) and contract research organization (CRO) services. The contract manufacturing organization (CMO) is further segmented into API, finished product, and packaging. The active pharmaceutical (API) manufacturing services accounted for the highest share in the CMO segment. The growing number of biologics APIs in the pipeline stage and the growing adoption of API biologics into a multitude of therapies are the major factors likely to drive the API manufacturing segment growth during the forecast period. The finished product manufacturing segment is further categorized into manufacturing of solid dosage forms, injectables, and others. Finished products segment accounted for the second-largest share after API manufacturing. The injectables segment in finished product manufacturing segment is anticipated to witness significant growth during the forecast period owing to the growing demand for injectables and rise in preference for injectable delivery systems such as prefilled syringes, auto-injectors for the administration of biologics and biosimilars.

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Clinical research organization (CRO) segment is fragmented into discovery, preclinical, clinical, and laboratory services. Clinical trial services in the CRO segment is likely to dominate during the forecast period. This is attributed to the rise in demand for effective therapies and increasing number of products under development. Moreover, increasing investments in R&D and growing collaborations among leading pharma companies for outsourcing of clinical trials are likely to upsurge the demand for clinical trial services, further augmenting the CDMO market growth. The packaging segment is anticipated to witness moderate growth during the forecast period. Implementation of patient-centric packaging innovations by many pharmaceutical contract manufacturing companies has become a crucial factor in improving patient adherence by providing dose monitoring features in packaging. Additionally, the rapid collaborations among various CDMOs to provide innovative packaging solutions are likely to boost the demand for the packaging segment during the forecast period.

REGIONAL ANALYSIS

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The CDMO market in North America was worth USD 48.70 billion in 2018. The market in North America is characterized by the presence of well-established CDMOs in the region. Along with this factor, growing collaborations among pharmaceutical companies and CDMOs offering a wide range of services that are responsible for the dominant share of the region in the global market. The market in the Asia Pacific is projected to register a comparatively higher CAGR during the forecast period owing to the presence of a highly skilled workforce and low R&D and manufacturing cost advantage offered in the region.

KEY INDUSTRY PLAYERS

Diverse Portfolio and Growing Focus on Mergers & Acquisition to Prove as Winning Strategy Leading Position in the Global Market

The competition landscape of the CDMO market depicts a fragmented market. Catalent, Inc, Baxter, Vetter, Recipharm AB, Thermo Fisher Scientific Inc. (Patheon), are among the top CDMO companies that have a strong presence in North America and Europe region. Moreover, these players are focusing on strategic mergers & acquisitions with many pharmaceutical companies in North America & Europe and many regions of Asia Pacific to expand their service offerings, which is likely to drive the contract development and manufacturing organizations pharmaceutical industry.

LIST OF KEY COMPANIES PROFILED:

• Catalent, Inc


• Baxter


• Vetter


• Recipharm AB


• Albany Molecular Research Inc. (AMRI)


• Thermo Fisher Scientific Inc. (Patheon)


• Unither


• DPT LABORATORIES LTD.


• NextPharma Technologies


• Others

KEY INDUSTRY DEVELOPMENTS:

• January 2019 – Cambrex Corporation, a leading manufacturer of small molecule API & finished dosage forms announced the completion of its acquisition of Avista Pharma Solutions. The strategic acquisition offers a huge opportunity to Cambrex Corporation to strengthen its service offerings in small molecule CDMO.


• May 2019 – Catalent, Inc. completed the acquisition of Paragon Bio services, a leader in gene therapy

REPORT COVERAGE

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The CDMO Market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, service types, and leading segment in services. Besides, the report offers insights into the CDMO market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

 Report Scope & Segmentation