CDMO Market to Reach USD 278.98 Billion by 2026; Increasing Number of Company Mergers and Acquisitions to Aid Growth

The global contract development and manufacturing organization market size is projected to reach USD 278.98 billion by the end of 2026. The growing demand for pharmaceutical products will emerge in favor of market growth. According to a report published by Fortune Business Insights, titled “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 market was worth USD 130.8 billion in 2018 and will exhibit a CAGR of 10.0% during the forecast period, 2019-2026.

A contract development manufacturing organization (CDMO) is an organization that serves other companies in the healthcare industry, for specific drug development processes. These organizations perform tasks such as drug discoveries, pre-clinical and clinical drug trials, and commercialization of the drug. The increasing investment by large scale companies towards research and development of drugs will emerge in favor of CDMOs. The presence of fewer companies has mad the market a bit fragmented. As a result, there is a huge potential for start-ups as well small scale companies for the foreseeable future. The increasing popularity of CDMOs in recent years will emerge in favor of the growth of the market in the coming years.

Jubilant Biosys’ Collaboration with Sanofi for Small Molecule Inhibitors to Aid Growth

The report identifies a few of the major industry developments of recent times and discusses their impact on the market. Due to the rising popularity of CDMOs, several large scale companies are looking to acquire smaller companies. Moreover, large scale companies are adopting M&A strategies with a bid to acquire a larger consumer base across the world. In February 2019, Jubilant Biosys’ announced that it has collaborated with healthcare giant Sanofi. Through this collaboration, the company will look to establish a formidable stand in the market. The collaboration was aimed at the development of small molecule inhibitors. Jubilant’s collaboration with Sanofi will not only help the company grow, but will influence the growth of the overall market in a positive way.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/contract-development-and-manufacturing-organization-cdmo-outsourcing-market-102502

Increasing Demand for Pharmaceutical Products to Aid Growth

The report encompasses several factors that have contributed to the growth of the market in recent years. The increasing demand for pharmaceutical products has created several growth opportunities for the companies operating in the market. The increasing investment in the research and development of efficient pharmaceutical products has made a positive impact on the growth of the market in the coming years.

Major Companies Are Focusing On Mergers and Acquisitions

The huge potential held by these organizations has encouraged companies to invest more towards the development of efficient CDMO services. As a result, large scale companies are looking to adopt standout strategies, with the bid to establish a stronghold in the market. Among all strategies, large scale companies have identified mergers and acquisitions as the leading strategy. A few of the leading companies that have been profiled in the report include:

• Catalent, Inc


• Baxter


• Vetter


• Recipharm AB


• Albany Molecular Research Inc. (AMRI)


• Thermo Fisher Scientific Inc. (Patheon)


• Unither


•  DPT LABORATORIES LTD.


• NextPharma Technologies


• Others

Further Report Findings:

• The market in North America will rise from its 2018 value of USD 48.72 billion driven by the presence of well-established CDMOs in this region.


• Asia Pacific will exhibit a higher CAGR due to the presence of skilled workforce and upgrading healthcare infrastructure. Moreover, low R&D as well as manufacturing cost will aid the growth of the regional market.


• Presence of several FDA approved facilities in India and China to aid growth of the market in Asia Pacific.

Industry Developments:

• May 2019: Recipharm AB introduced fully integrated services for associated drugs that include early-stage development to commercial manufacturing.

The global CDMO market is segmented on the basis of: