The Global Pharmaceutical Contract Development & Manufacturing Market is estimated to be USD 100 Bn in 2020 and is expected to reach USD 142.2 Bn by 2025 growing at a CAGR of 7.3%.
One of the reasons for the increase in the pharmaceutical contract development and manufacturing industry is the growth of developing biotech. Most of the companies are continuously involved in the development of complex drug compounds to address a specific disease.
Most of the companies lack the infrastructure required for formulation, clinical, and regulatory agency submission. A partnership with a pharmaceutical contract manufacturer can provide another viable option. By working cooperatively, a biotech company, a donor company, and a pharmaceutical contract manufacturer can move a product into the global markets.
The increasing level of mergers and acquisition activities are resulting in the consolidation of the contract service providers. The growth of the Pharmaceutical Contract Development and Manufacturing Market is driven by the increasing demand for generics across the globe. The increasing investment in pharmaceutical R&D by the companies pushes the growth of the market upwards.
The pharmaceutical contract development and manufacturing market are hindered by the inadequate capacity utilization of manufacturing facilities by the companies. The poor-capacity utilization of the manufacturing unit is caused due to the inefficiency of different sub-processes involved in the production process, which further results in low production. The low production is responsible for decreased revenue, thus affecting the overall pharmaceutical contract development and manufacturing market.
Dynamic changes witnessed in this sector, coupled with severe pressure over the profit margins, are anticipated to restrain growth. Stringent and complex Government regulatory requirements are also attributive to slow progress.
Scope of the Report
Based on the Service, API manufacturing services dominated the market as a result of the rising demand for High Potency Active Pharmaceutical Ingredients (HPAPI). Market players are engaged in the development of large scale manufacturing facilities on the pilot as well as commercial scale. Parenteral manufacturing services are also expected to grow significantly due to the increasing need for high levels of expertise, increasing number of sterile formulations, and growing drug development activity.
Based on end-users, the Big Pharma end-user segment is accounted for the largest share of the market. The growth of big pharma is attributed to the emergence of new medicines and therapy forms, pricing pressure, pipeline challenges, and increasing opportunities in the emerging markets.
Based on Region, North America is anticipated to have a large market share and is expected to grow significantly during the forecast period. The Asia Pacific is also expected to grow at a surplus rate due to the rise in the number of companies outsourcing projects in this region's developing economies. Heavy investments by Asian CMOs are expected for exponential progress.
Growing Demand for Generics
Increasing Investments in Pharmaceutical R&D
Investments in Advanced Manufacturing Technologies by CDMOs
The increasing lead time and logistics costs
Strict Governmental Regulations Needed for the Approval of drugs
Increasing Demand for Biological therapies
Growing Focus on Specialty Medicines
Growth in the Nuclear Medicine Sector
Increasing Demand for Cell and Gene therapies
Managing Costs and Astutely Investing in Technology
Some of the companies covered in this report are Thermo Fisher Scientific Inc., Catalent, Inc., Lonza Group Ltd, Recipharm AB, Vetter Pharma International GmbH, Famar Health Care Services, Abbvie Inc., Aenova Group, Consort Medical Plc, and others.
10. Company Profiles 10.1 Thermo Fisher Scientific Inc. 10.2 Catalent, Inc. 10.3 Lonza Group Ltd 10.4 Recipharm AB 10.5 Veter Pharma International GmbH 10.6 Famar Healthcare Services 10.7 Abbvie Inc. 10.8 Aenova Group 10.9 Almac Group 10.10 Siegfried Holding AG 10.11 Evonik Industries AG 10.12 Boehringer Ingelheim International GmbH 10.13 Jubilant Life Sciences Ltd. 10.14 Patheon Inc. 10.15 Pfizer CentreSource 10.16 CMIC Holdings Co. Ltd 10.17 Syneos Health Inc. 10.18 LSK Global Pharma Service Co Ltd. 10.19 PAREXEL International Corporation 10.20 PRA Health Sciences Inc. 10.21 Samsung Bioepis Co. Ltd. 10.22 Sagimet Biosciences (3V Biosciences Inc.) 10.23 WuXi AppTec Inc 10.24 Quanticate Ltd. 10.25 SGS SA (SGS Life Sciences)