Pharmaceutical Contract Manufacturing (CMO) – Global Market Outlook to 2024: Anticipating a CAGR of 7.75% – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Pharmaceutical
Contract Manufacturing (CMO) Market – Growth, Trends and Forecasts (2019
– 2024)” report has been added to ResearchAndMarkets.com’s
offering.

The Pharmaceutical Contract Manufacturing (CMO) Market is expected to
register a CAGR of over 7.75% during the forecast period 2019-2024.

The growing 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.

Additionally, pharmaceutical companies have been directing their
priorities toward the core areas of competency, and hence, prefer not to
dispense available resources, expertise, and technology on formulating
the final dose of medicines.

In order to adapt to the paradigm shift in the biotechnology industry
and the present biopharmaceutical industry trends, CMOs have decided to
move away from solely renting manufacturing units to a business model
that offers extensive development and production support.

CMOs and contract development and manufacturing organizations (CDMO)
individually or together have started offering many specialized,
value-added services for customers with early-stage development needs
and for those who require support to generate a biologics license
application (BLA) enabling process validation data package.

CMOs have begun offering early development support to their customers,
along with fully integrated services, which include specialized services
like aseptic fill-finish. Though the concept of CDMO was introduced
earlier, it has been fully realized over the last few years.

The costs invested in R&D are continuously increasing, and yet the
useful results returned from these processes are becoming rarer. Many
companies have realized that moving this part of the business overseas
and taking advantage of the still-emerging pharmaceutical markets is an
effective method of cutting costs.

Despite the existing evidence regarding cost savings and competences
that can be accrued, many companies are reluctant to give up that
control, going so far as to state that logistics are a core competency
for the company. However, that scenario seems to be changing slowly.

Key Market Trends

Active Pharmaceutical Ingredient (API) Manufacturing is expected to
register a Significant Growth

The demand for API manufacturing has witnessed a sustained rise in the
past few years, and it is expected to continue growing steadily, with
further patent expiries expected in the future and a subsequent increase
in global generic production capacities. Most of the companies in this
industry are increasingly focusing on the development of biological
APIs, which is driving the API market. The general prescription drug
sub-segment occupies a major share in the API manufacturing segment, as
compared to OTC drugs.

Other factors driving the growth of the API segment includes stringent
government initiatives in the healthcare sector, innovation in
biologics, and rise in the incidence of cancer and age-related diseases.
However, strict European regulatory policies may hinder the segment’s
growth.

Captive manufacturers are currently leading the API market; however,
they are slowly expected to lose their market share to contract
manufacturers toward the end of the forecast period. This is due to the
complex and expensive in-house manufacturing of API and increasing
competition from emerging players in this industry.The increasing
emphasis on high-potency APIs is driving the growth of the segment. The
novel technologies for HPAPIs can potentially change the in-out balance
of CMOs in this fast-growing segment.

As the big pharma companies continue to scale down on manufacturing,
greater opportunities for the CMOs are expected, both in the
biopharmaceutical and small molecule API segments.

North America is Expected to Hold Major Share in United States

In North America especially, the United States is the world’s largest
market for drugs and accounts for almost half of the R&D spending in
pharmaceutical and biotechnology markets. Hence, CMOs play a critical
role in this market and have invested in new facilities and technologies
to cater to a wide range of outsourcers.The United States is expected to
face strong competition from Asia-Pacific CMO providers, especially in
solid dose formation.

The consolidation of CMOs is expected to occur within the next five
years, as the competitors will either leave the industry, or abandon a
specific area within the industry, or go out of business. This improves
the pricing power of value-added CMOs.

Companies, such as Catalent and Patheon, have an established customer
base in the United States and are leaders in oral and sterile dose
formulations. These companies have been aggressive in expanding their
products/services/capabilities through strategic alliances. With the
recent acquisition of Confab, DPT Laboratories has become the global
leader in prescription semi-solid and liquid formulations, acquiring
proprietary products.

Competitive Landscape

The pharmaceutical contract manufacturing market is highly competitive
and consists of several major players. In terms of market share, few of
the major players currently dominate the market. These major players
with a prominent share in the market are focusing on expanding their
customer base across 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 also acquiring start-ups
working on enterprise network equipment technologies to strengthen their
product capabilities. In April 2017, Famar announced the closure of the
acquisition of a manufacturing site from Bayer, located at
Pointe-Claire, Canada, with the transfer of full ownership of the plant
to Famar.

Key Topics Covered

1 INTRODUCTION

1.1 Study Deliverables

1.2 Study Assumptions

1.3 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Overview

4.2 Introduction to Market Drivers and Restraints

4.3 Market Drivers

4.3.1 Increasing Outsourcing Volume By Big Pharmaceutical Companies

4.3.2 Expansion In The Service Offering Of CMOS

4.3.3 Advent Of CDMO Model Into The Market

4.3.4 Increasing Investments In R&D

4.4 Market Restraints

4.4.1 Increasing Lead Time & Logistics Costs

4.4.2 Stringent Regulatory Requirements

4.4.3 Capacity Utilisation Issues Affecting The Profitability Of Cmos

4.5 Value Chain / Supply Chain Analysis

4.6 Industry Attractiveness Porters Five Force Analysis

4.7 Technology Snapshot

4.7.1 Dosage Formulation Technologies

4.7.2 Dosage Forms by Route of Administration

5 MARKET SEGMENTATION

5.1 By Type

5.1.1 Active Pharmaceutical Ingredient (API) Manufacturing

5.1.2 Finished Dosage Formulation (FDF) Development & Manufacturing

5.1.3 Secondary Packaging

5.2 Geography

5.2.1 North America

5.2.2 Europe

5.2.3 Asia Pacific

5.2.4 Latin America

5.2.5 Middle East and Africa

6 COMPETITIVE LANDSCAPE

6.1 Company Profiles

6.1.1 Pfizer Inc.

6.1.2 Baxter BioPharma solutions

6.1.3 Boehringer Ingelheim International GmbH

6.1.4 Jubilant Life Sciences Limited

6.1.5 Recipharm AB

6.1.6 Catalent Inc.

6.1.7 Recipharm AB

6.1.8 Patheon Inc.

6.1.9 Famar S.A.

6.1.10 Aenova Group

7 INVESTMENT ANALYSIS

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/research/x9x3g3/pharmaceutical?w=4

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
[email protected]
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
Related
Topics: Pharmaceutical
Manufacturing