Global Pharmaceutical CMO Industry Outlook 2022-2027 - COVID-19 has Unlocked Major Opportunities for Vendors, as Companies Need to Stock Their Pipelines With New Drugs - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Pharmaceutical Contract Manufacturing Organization (CMO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)" report has been added to ResearchAndMarkets.com's offering.

The Global Pharmaceutical Contract Manufacturing Organization (CMO) Market was valued at USD 134.12 billion in 2021, and it is expected to reach USD 204.14 billion by 2027, registering a CAGR of 6.64% from 2022 to 2027.

As a result of the rising demand for generic medicines and biologics, the capital-intensive nature of the business, and the complex manufacturing requirements, many pharmaceutical companies have identified the potential profitability in contracting with a CMO (contract manufacturing outsourcing) for both clinical and commercial stage manufacturing.

Key Highlights

The most significant factor driving the growth of CMOs in the pharmaceutical industry is the growing need for state-of-the-art processes and production technologies, which have proven significantly effective in meeting regulatory requirements.

CMOs are consolidating as a means of enhancing profitability in the competitive market. Through consolidation, the large CMOs could expand their geographical presence and penetrate multiple markets. For instance, in January 2020, South Korea's Celltrion, a biosimilar maker, announced plans to invest USD 514 million over five years for its new plant in Wuhan, China's most extensive biologics facility with a capacity of 120,000 liters. The new facility is designed to develop and manufacture its biologics for the local market and perform contract work for Chinese biotech companies' emerging wave.

Additionally, the pharmaceutical companies have been directing their priorities toward the core areas of competency. Hence, they prefer not to dispense available resources, expertise, and technology in formulating the final dose of medicines. The increased competition and shrinking profit margins compelled the pharmaceutical companies to revisit their production processes and R&D activities instead of manufacturing the formulated drug to stay competitive in the market.

With the ongoing growth in the pharmaceutical sector, particularly after the COVID-19 pandemic, pharmaceutical innovator companies need to stock their pipelines with new drugs. However, they do not have the resources to discover, develop, and manufacture products. Hence, the requirement for CMOs is quite significant.

Further, the countries such as China, India, and Japan hold a significant share of the pharmaceutical CMO market, owing to low labor costs, low capital and overhead costs (compared to that of the United States and Europe), tax incentives, and undervalued currency combine that provides a significant cost advantage for pharmaceutical companies outsourcing to these countries.

The most significant factor boosting the growth of CMOs in the pharmaceutical industry in the Asia Pacific region is the growing need for robust processes and production technologies, which have proven highly effective in meeting regulatory requirements.

The outbreak of COVID-19 positively impacted the market as pharma companies suddenly were faced with the challenge of producing the many millions of vaccine doses that would likely be needed. Many companies such as Pfizer and AstraZeneca transferred non-COVID-19 biologics out of their proprietary manufacturing networks to make room for the new vaccines. Due to compressed timelines and manufacturing scaling challenges for the COVID-19 vaccines and medicines, CMOs signed contract manufacturing service agreements at an unprecedented rate with the onset of the pandemic.

Key Market Trends

• Active Pharmaceutical Ingredient (API) Manufacturing Accounts for the Largest Market Share
• Asia Pacific is Expected to Register Highest Growth Rate

Competitive Landscape

The Pharmaceutical Contract Manufacturing Organization (CMO) Market is highly competitive and consists of several major players. Furthermore, the industry is currently dominated by a few significant competitors in terms of market share. These major companies are diversifying their consumer base by expanding into foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are acquiring start-ups focusing on enterprise network equipment technologies to strengthen their product capabilities.

• November 2021 - Baxter International Inc. announced an approximately USD 100 million expansion of its sterile fill/finish manufacturing facility located in Halle/Westfalen, Germany. This facility is operated by BioPharma Solutions (BPS), a business unit of Baxter that specializes in partnering with leading pharmaceutical and biotech companies on the development and contract manufacturing of drug products for parenteral (injectable) pharmaceuticals.
• August 2021 - Pfizer Inc. and Trillium Therapeutics Inc. announced that the companies have entered into a definitive agreement under which Pfizer will acquire Trillium, a clinical-stage immuno-oncology company developing innovative therapies for the treatment of cancer. Under the agreement terms, Pfizer will acquire all outstanding shares of Trillium not already owned by Pfizer for an implied equity value of USD 2.26 billion, or USD 18.50 per share, in cash. This represents a 118% premium to the 60-day weighted average price for Trillium.
• August 2021 - Lonza announced that it would invest in establishing drug product manufacturing capabilities in Guangzhou, China. The new investment will fund installing an aseptic drug product fill and finish production line at the 17,000 m2 state-of-the-art cGMP mammalian facility.

Key Topics Covered

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Overview

4.2 Industry Attractiveness-Porter's Five Forces Analysis

4.2.1 Bargaining Power of Suppliers

4.2.2 Bargaining Power of Consumers

4.2.3 Threat of New Entrants

4.2.4 Intensity of Competitive Rivalry

4.2.5 Threat of Substitutes

4.3 Industry Value Chain Analysis

4.4 Industry Policies

4.5 Market Drivers

4.5.1 Increasing Outsourcing Volume by Pharmaceutical Companies

4.5.2 Increasing Investment in R&D

4.6 Market Restraints

4.6.1 Increasing Lead Time and Logistics Costs

4.6.2 Stringent Regulatory Requirements

4.6.3 Capacity Utilization Issues Affecting the Profitability of CMOs

4.7 Analysis of Current Licensing and Business Models in the CMO Industry

4.8 Key Criteria Considered for Selection of CMO

4.9 Coverage on Thin Film Contract Outsourcing

5 ASSESSMENT OF IMPACT OF COVID-19 ON THE PHARMACEUTICAL CMO MARKET

6 MARKET SEGMENTATION

6.1 By Service Type

6.1.1 Active Pharmaceutical Ingredient (API) Manufacturing

6.1.1.1 Small Molecule

6.1.1.2 Large Molecule

6.1.1.3 High Potency API (HPAPI)

6.1.2 Finished Dosage Formulation (FDF) Development and Manufacturing

6.1.2.1 Solid Dose Formulation

6.1.2.1.1 Tablets

6.1.2.1.2 Others

6.1.2.2 Liquid Dose Formulation

6.1.2.3 Injectable Dose Formulation

6.1.3 Secondary Packaging

6.2 By Geography

6.2.1 North America

6.2.2 Europe

6.2.3 Asia Pacific

6.2.4 Latin America

6.2.5 Middle East and Africa

7 VENDOR MARKET SHARE

8 COMPETITIVE LANDSCAPE

8.1 Company Profiles

8.1.1 Catalent Inc.

8.1.2 Recipharm AB

8.1.3 Jubilant Biosys Ltd. (Jubilant Pharmova Ltd)

8.1.4 Patheon Inc. (Thermo Fisher Scientific Inc.)

8.1.5 Boehringer Ingelheim Group

8.1.6 Pfizer CentreSource (Pfizer Inc.)

8.1.7 Aenova Group

8.1.8 Famar SA

8.1.9 Baxter Biopharma Solutions (Baxter International Inc.)

8.1.10 Lonza Group AG

8.1.11 Tesa Labtec GmbH (TESA SE)

8.1.12 Tapemark

8.1.13 ARX LLC

9 ANALYSIS OF MAJOR CMOS WHO ARE EQUIPPED TO MANUFACTURE SCHEDULED DRUGS

10 INVESTMENT ANALYSIS

11 FUTURE OF THE GLOBAL PHARMACEUTICAL CONTRACT MANUFACTURING MARKET

12 APPENDIX

12.1 Dosage Formulation Technologies

12.2 Dosage Forms by Route of Administration

For more information about this report visit https://www.researchandmarkets.com/r/bqylgx

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900