Report ID: 10151879 |
Published Date: 21 Oct 2022 |
Report Format: |
Delivery Timeline: 48-72 Business Hours
"The global pharmaceutical products and CMO market (hereinafter referred to as the research market) is estimated to be valued at USD 130 billion by the end of 2021 and is expected to mark a CAGR of ~4% over the period 2022-2030. With the growing demand for generic drugs and biologics, the capital-intensive nature of the business, and complex manufacturing requirements, many pharmaceutical companies have identified the potential rewards of signing contracts with CMOs (contract manufacturing outsourcing) at the manufacturing stage.
The most important factor driving the growth of CMOs in the pharmaceutical industry is the increasing demand for cutting-edge production processes and technologies. Facts have proved that these processes and technologies are very effective in meeting regulatory requirements. CMOs are establishing themselves as a means to increase profitability in a highly competitive market. Through integration, large CMOs can expand their geographic influence and penetrate into niche markets. Small CMOs can use the technical expertise and resources of large CMOs. For example, in September 2019, SK Holdings, the holding company of South Korea’s SK Group, established the United States Joint Contract Manufacturing Organization (CMO) SK pharmteco.
This is the pharmaceutical field of Korea’s SK biotek and AMPAC Fine Chemicals (AFC) in the United States. With continuous growth, Innovative pharmaceutical companies need to provide new drugs for their product lines. However, they do not have the resources to discover, develop and manufacture products. Therefore, the requirements of the CMO are very important. Novartis International AG, a multinational pharmaceutical company headquartered in Switzerland, has established four internal facilities in the United States and Europe to establish its cell therapy manufacturing network. These CMO facilities should be put into commercial operation in the second half of 2020.
Reporting scope: Contract manufacturing is a form of outsourcing, in which a manufacturer signs a formal agreement with another manufacturing company on its parts, products or components. Old manufacturers used them to make products in their own manufacturing processes. A contract manufacturing organization (CMO) is an organization that serves the pharmaceutical industry and provides customers with comprehensive services from drug development to manufacturing.
Outsourcing to CMO enables pharmaceutical customers to expand technical resources without increasing overhead. Customers can manage their internal resources and costs by focusing on core capabilities and high-value projects, while reducing or not adding infrastructure or technical staff. The study provides a detailed view of the current CMO industry, with additional segmentation of each market segment by region, as listed in the index.
Main market trends:
Active pharmaceutical ingredient (API) manufacturing is expected to record significant growth. API manufacturing demand has continued to grow in recent years and is expected to continue to grow steadily. It is expected that more patents will expire in the future. And the subsequent increase in global generic drug production capacity. Most companies in this industry are increasingly focusing on the development of biological APIs, which drives the API manufacturing portion of the research market.
Compared with over-the-counter drugs, the general market segment of prescription drugs has greater demand for API manufacturing. Other factors driving the growth of the API manufacturing sector include increasing government initiatives in the healthcare sector, innovation in biological products, and increasing incidence of cancer and age-related diseases. However, strict regulatory policies in Europe and other regions may hinder the growth of this market segment. The increasing emphasis on high-performance APIs is driving the growth of this segment. HPAPI new technology may change the balance of entry and exit of CMOs in this fast-growing market segment.
The Asia-Pacific region is expected to achieve higher growth:
China is becoming the most attractive outsourcing country. Most CMOs currently operating in China mainly provide APIs and API production for approved generic drugs and brand-name drugs. Some of Chinas top API CMOs and chemical intermediaries include Beijing Second Pharmaceutical, Asymchem Laboratories, Chongqing Huabang Pharmaceutical, Shandong Xinhua Pharmaceutical, Porton Fine Chemicals, Venturepharm Laboratories, and Tianjin Pharmaceutical. With its presence in India, the concept of contract manufacturing continues to develop and adapt quickly, including various stages of formulation development, basic drug manufacturing, stability research, and clinical trials.
The domestic CMO market encourages the Japanese pharmaceutical industry to set up offices in the country, whether it is a sole proprietorship or cooperation with an Indian company. The CMO market in Japan is still immature. However, the country has experienced incremental growth in recent years. The Japanese OCM market has grown by about 30% after the independent production and sales of the Pharmaceutical Affairs Law were recognized. Since then, the growth trend has continued. There are only a few large-scale CMO manufacturers in Japan, including companies such as Bushu Pharmaceuticals, Nipro Pharma, and CMIC.
Competitive landscape
The pharmaceutical contract manufacturing market is highly competitive and consists of several major players. In terms of market share, few major players currently dominate the market. These major players with outstanding market shares are focusing on expanding their customer base abroad.
These companies are using strategic partnership programs to increase their market share and improve their profitability. Companies operating in the market are also acquiring start-ups engaged in enterprise network equipment technology to strengthen the capabilities of their products. February 2020-Catalent has signed an agreement with Zumutor Biologics, Inc. to produce Zumutor ZM008 for the treatment of solid tumors. Zumutor is a biologics company that develops new immuno-oncology therapies to promote transformational improvements in cancer treatment. 12 Month-Thermo Fisher Scientific Inc. A new $90 million viral vector CDMO site was opened in Lexington, Massachusetts. This 50,000-square-foot facility will add more than 200 jobs and support the development, testing, and manufacturing of viral vectors, which are critical to the development of new life-saving cell and gene therapies around the world.
Major Players
Baxter BioPharma solutions
Pfizer Inc.
Boehringer Ingelheim International GmbH.
Jubilant Life Sciences Limited
Recipharm AB"
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Report ID: 10151879 |
Published Date: 21 Oct 2022 |
Report Format: |
Delivery Timeline: 48-72 Business Hours
