Biologics Contract Development and Manufacturing Organization (CDMO) Market will Reach US$18.58 Billion by 2027

The Global biologics contract development and manufacturing organization (cdmo) market size was US$9.07 Billion in 2019 and is expected to reach US$18.58 Billion by 2027; This converts into a compounded annual growth rate (CAGR) of 9.38% for the forecast period.

Market Segmentation Covered in the report as below:

By Type

  • Mammalian
  • Non-mammalian (Microbial)

By Product Type

  • Biologics
  • Monoclonal (Diagnostic,
  • Therapeutic, and Proteinbased)
  • Recombinant Proteins
  • Antisense and Molecular
  • Therapy
  • Vaccines
  • Other Types
  • Biosimilars

By Geography

Market Geography Overview: Based on geography market is segmented as below:

  • North America
  • Europe
  • APAC
  • Latin America (LATAM)
  • Middle East & Africa (MEA)

Contract development and manufacturing organizations (CDMOs), as the name suggests, serve pharmaceutical companies on a contract basis. They offer comprehensive drug development and manufacturing services.

The pharmaceutical industry is growing at a significant rate in recent times. While small molecule drugs are dominating the industry, large molecule drugs are anticipated to display a substantial growth rate. CDMOs overcome restraints associated with the development and manufacturing of such drugs. Despite the decelerated growth rate during the pandemic, the CDMO market, due to an upsurge in collaboration with such organizations, is predicted to expand owing to the upsurge in demand for these organizations.

Market Dynamics and Trends

The conceptualization and development of drug formula burdens pharmaceutical companies financially. Additionally, procuring tools and technologies necessary for drug manufacturing involves a high initial and maintenance cost, that is almost not viable for many small and mid-sized enterprises. Finally, a delayed approval or rejection could lead to losses.  CDMOs provide integrated bio-processing services that make rapid product launches feasible. Moreover, the heavy investments made by these organizations in acquiring the required tools and technologies eliminates the need for pharma companies to procure them. Therefore, since CDMOs reduce financial burdens and provide cost-effective solutions, the surge in demand for outsourcing to such organizations will ensure market progress.

Increasing investments in the biosimilar segment and the pooling together of pharma companies and CDMOs resources for their development are anticipated to provide opportunities for market growth. However, breaches related to IP rights and patents may pose a challenge for the market.

Recent news:

1) Invetx collaborated with WuXi Biologics and AbCellera in February 2020 for clinical entry and pre-clinical development of its broader pipeline of protein-based therapeutics for Animal Biopharmaceutical Development.

2) In May 2020, WuXi Biologics expanded its clinical and commercial facility in Worcester.

3) Lonza Group AG partnered with IsoPlexis to expand manufacturing of cell therapies in August 2020.

Market Segmentation and Geographic breakdown:

The mammalian segment accounted for over USD 6.3 billion in revenue in 2019, which is equivalent to more than 70% of the market. These cell lines are largely used for the production of large molecules due to their ability to add human-like post-translational modifications to complex protein therapeutics. The growing demand for these cells is projected expand the segment at an approximate 14% during the forecast period.

Several factors have led to the dominance of the biologics segment in 2019. The segment secured close to 85% of the market, as a result of higher success rates as compared to other drug molecules, rising demand for biological therapeutics, increasing number of conventional drug manufacturers seeking to enter the sector etc. However, the biosimilar segment will register a CAGR of more than 15% between 2020 to 2027.

Presence of two major economies, U.S. and Canada, heavy investments in R&D within the pharmaceutical and biotechnology markets and rising collaboration between biopharmaceutical companies and CDMOs is anticipated to support the growth of the North American CDMO market. Asia-Pacific is envisaged to grow at the fastest rate due to lack of adequate regulations for biosimilar approval, high-volume production capacity and cost-associated benefits.

Competitive Intelligence:

Some of the key players operating in the global biologics contract development and manufacturing organization (cdmo) market include, but not limited to:

Boehringer Ingelheim Group; Wuxi Biologics; Samsung Biologics; Lonza Group; Fujifilm Diosynth Biotechnologies USA Inc.; Toyobo Co. Limited; Parexel International Corporation; PRA Health Sciences; Binex Co. Limited; JRS Pharma; Rentschler Biotechnologies; AGC Biologics; Sandoz Biopharmaceuticals; Catalent Inc.; AbbVie Contract Manufacturing.

A few key players of the market include, but not limited to: Boehringer Ingelheim Group, Wuxi Biologics, Samsung Biologics, Lonza Group, Fujifilm Diosynth Biotechnologies USA Inc., Toyobo Co. Limited, Parexel International Corporation, PRA Health Sciences, Binex Co. Limited, JRS Pharma, Rentschler Biotechnologies, AGC Biologics, Sandoz Biopharmaceuticals, Catalent Inc., AbbVie Contract Manufacturing."

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