Pharmaceutical Contract Manufacturing Market

Cutthroat competition and price wars have compelled the existing big pharmaceutical players to outsource their drug manufacturing services to other contract manufacturing organizations (CMO), who perform and provide cost-effective production planning with assistance of electronic platforms, skilled and well-trained labor force coupled with advanced technological platforms. These pharmaceutical contract manufacturing companies have developed and evolved to provide one stop solution to their clients by providing end to end support in drug manufacturing including pharmaceutical manufacturing services, drug development services and biological manufacturing services. The global pharmaceutical contract manufacturing market is foreseen to register strong growth during the forecast period owing to rise in R&D investments, patent expiration of innovative drugs, growing demand for generics and biosimilars. Moreover, CMOs save the big pharmaceutical companies from huge capital investments and aid in increasing their profits through their support services.

Biosimilars to Lead Pharmaceutical Contract Manufacturing Market as Biologics Approach Patent Expiry

The patent cliff of biologics has opened new market avenues for biosimilar contract manufacturing companies. Owing to this many new entrants are expected to spur the growth of global pharmaceutical contract manufacturing market, thereby reducing the overall cost of medicines, and passing on the benefits of low-cost drug development to its end users. However, to retain and sustain this competitive market the contract manufacturing organization will have to focus on building the reputation of the biosimilar drug equivalent to its original biologic drug by bringing innovation in self-administrative drug delivery modes such as auto-injectors and prefilled syringes. In addition, adhering to safety and regulatory compliances is going to be one of the precedents for the contract manufacturers of biosimilars.

Demand for Gene Analysis Services Triggers Growth of Global Pharmaceutical Contract Manufacturing Market

Strategic investments in gene cell therapies by big pharmaceutical companies has opened a new window of opportunity for established companies addressing the needs of this lucrative market such as T-cell processing, stem cell line derivation and cell banking. These CMO companies are providing advanced genetic research and engineering services such as next generation sequencing services and genome editing, this growing demand for gene related research projects is consequently boosting the overall growth of the pharmaceutical contract manufacturing market. Many strategic acquisitions have been made in this field for instance. In May 2021, Catalent acquired Promethra Biosciences Cell therapy a subsidiary of Hepatic Cell Therapy Support SA, its facility spans approximately 32,400 square foot in Gosselis Belgium. Going ahead in June 2021, Catalent acquired RheinCell Therapeutics, which is a Germany based manufacturer and developer of human induced pluripotent stem cell. In March 2021, WuXi App Tec and its subsidiaries announced several acquisitions to build and fortify its presence in cell and gene therapies market. These include acquisition of Pfizer’s biologic drug substance and product manufacturing facilities at Hangzhou, China, CMAB Biopharma a biologics CDMO based in Suzhou, China and a former Bayer bio manufacturing site in Germany. These strategic investments and acquisitions depict the potential market growth for CRO industry.

Europe to Account for Largest Share in Global Pharmaceutical Contract Manufacturing Market

Europe accounted to have the largest market share of the total pharmaceutical contract manufacturing market owing to presence well established API production houses, provision of advanced manufacturing services along with technologically advanced equipment for bio-manufacturing processes. However, Asia Pacific region is expected to have the highest growth rate due to presence of large generic manufacturing hubs in India and China. Moreover, companies in this region are upgrading their manufacturing capabilities to match to the international regulatory requirements.

Competitive Landscape: Global Pharmaceutical Contract Manufacturing Market

The market is highly fragmented and extremely competitive with few major players dominating this market. The major strategy adopted by the numerous players of this market is inorganic growth with many recent acquisitions witnessed along with some with pending acquisitions.  The major players include Thermo Fischer Scientific Inc., Catalent Inc., Lonza Group Ltd, WuXiApp Tec, Samsung Biologics and others. To stay competitive companies are also adopting various agreements, joint ventures and collaborations with other firms for instance, In January 2021, Lonza entered into an agreement with Aruvent Science to carry out process development (one-time investigational gene therepy-ARU-1801) for sickle-cell treatment in the US.  Similarly, ThermoFisher Scientific Inc., entered into a joint venture with Innoforce to meet the biological demand in China through its biological and sterile drug development and manufacturing facility.

Global Pharmaceutical Contract Manufacturing Services Market is Segmented as Below:

By Services

• Pharmaceutical Manufacturing Services
  • Pharmaceutical API Manufacturing Services
  • Pharmaceutical FDF Manufacturing Services
• Drug Development Services
• Biologics contract manufacturing services
  • Biologics API manufacturing services
  • Biologics FDF manufacturing services

By End User

• Big Pharmaceutical Companies
• Small & Medium-Sized Pharmaceutical Companies
• Generic Pharmaceutical Companies
• Other End Users

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Switzerland
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Rest of APAC
• LAMEA
  • Brazil
  • Mexico
  • Rest of LAMEA

Key Elements Included In The Study: Global Pharmaceutical Contract Manufacturing Market

• Pharmaceutical Contract Manufacturing Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2021
• Market Value at Regional and Country Level, 2022 - 2029
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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Disclaimer:

• The segmentation/company profiles/countries depicted above may vary in the actual report.