LONDON, March 2, 2021 /PRNewswire/ -- According to a new market research report titled "Pharmaceutical Contract Development and Manufacturing Market by Service [Pharmaceutical Manufacturing Services (API, FDF), Drug Development Services, Biologics Development], End User [Big & Generic Pharmaceutical Companies] – Global Forecast to 2027," published by Meticulous Research®, the pharmaceutical contract development and manufacturing market is expected to grow at a CAGR of 6.5% from 2020 to 2027 to reach $134.23 billion by 2027.
A pharma contract manufacturing company offers various services to drug companies, including drug development, drug manufacturing and commercial production, development of drug formulation, and biological manufacturing. A pharmaceutical CDMO serves pharmaceutical companies on a contract basis to provide all the above comprehensive services. This allows major pharmaceutical companies to outsource those aspects of the business, which can help with scalability or allow the major company to focus on drug discovery and drug marketing.
Complex manufacturing requirements in the pharmaceutical sector, increasing investments in pharmaceutical R&D, increasing outsourcing of clinical trials, and the growing incidence of infectious diseases are some of the leading factors driving the growth of this market. In addition, rising demand for generic medicines & biologics, growing demand for cell & gene therapies, and increasing pharmaceutical outsourcing support the growth of this market.
Impact of COVID-19 on the Pharmaceutical Contract Development and Manufacturing Market
The recent outbreak of COVID-19 has catalyzed the demand for pharmaceuticals and has stirred the development of vaccines, antiviral vaccines, antibody therapy, and various pharmaceutical products.
Due to this pandemic, contract development and manufacturing organizations are witnessing growth as many larger manufacturing units are hiring contract development and manufacturing organizations for pharmaceutical drug development and manufacturing. Most pharmaceutical companies, contract research organizations, and research institutes are working together to translate research into effective pharmaceutical products. For instance, in October 2020, Recipharm AB (Sweden) signed an agreement with Arcturus Therapeutics (U.S.) to support the manufacture of LUNAR-COV19 (ARCT-021) vaccine candidates. In September 2020, Thermo Fisher Scientific Inc. (U.S.) partnered with INOVIO Pharmaceuticals, Inc. (U.S.) to manufacture INOVIO's DNA COVID-19 vaccine candidate INO-4800 and to enhance the commercial production of INO-4800.
In addition, accelerated approvals have been granted to certain drugs, which are expected to show efficiency in the treatment of COVID-19. For instance, the National Medical Products Administration of China has approved the use of Favilavir as a treatment for coronavirus. The drug has reportedly observed beneficial in treating the disease with minimal side effects in a clinical trial involving 70 patients.
In addition, many vaccines are entering into clinical trials in countries such as Israel, China, Italy, and India. Therefore, due to the high demand for effective drugs for COVID-19 treatment, the production of Chloroquine, vaccines, antibody, and other drugs is expected to increase globally, which is expected to drive the growth of this market. Flexibility, ready-made capacity, and convenience have been vital for CDMOs in the virotherapy space during the outbreak and will continue to be important in 2021 and beyond to meet the growing demand for viral vector treatments. Virotherapy development and manufacturing capacity will need to increase by 80% over the next decade to meet demand (Source: Vibalogics).
The pharmaceutical contract development and manufacturing market sis mainly segmented by Service [pharmaceutical manufacturing services (API, FDF), drug development services, biologics development], end user [big & generic pharmaceutical companies], and geography. The study also evaluates industry competitors and analyzes their market share at the global level.
Based on service, the biologics manufacturing services segment is slated to grow at the highest CAGR during the forecast period due to the rising adoption of advanced technologies for biological production, increasing applications of monoclonal antibodies (mAbs), development of next-generation antibody therapies, such as antibody-drug conjugates, and focus of the biopharma and pharma companies towards outsourcing of their activities.
Based on end user, big pharmaceutical companies are estimated to dominate the overall pharmaceutical contract development and manufacturing market in 2020. The major share of this segment is primarily attributed to the growing prevalence of various infectious diseases, the growing need for state-of-the-art processes and production technologies, and the rise in the cost of clinical trials and early development studies.
The report also includes an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past four years. The pharmaceutical contract development and manufacturing market has witnessed several agreements, collaborations, partnerships, acquisitions, & expansions in recent years. For instance, in August 2020, Catalent Inc. (U.S.) signed an agreement with AstraZeneca PLC (U.K.) to expand manufacturing support for the University of Oxford's adenovirus vector-based COVID-19 vaccine AZD1222 at the manufacturing facility located in Harmans, Maryland. Also, in May 2020, Lonza Group Ltd (Switzerland) collaborated with Moderna, Inc. (U.S.) to enable large-scale production of Moderna's mRNA vaccine (Mrna-1273) against SARS-CoV-2.
The pharmaceutical contract development and manufacturing market is a highly consolidated with the presence of major players, such as Thermo Fisher Scientific Inc. (U.S.), Catalent Inc. (U.S.), PPD Inc. (U.S.), Lonza Group Ltd (Switzerland), Recipharm AB (Sweden) Vetter Pharma-Fertigung GmbH & Co. KG (Germany), AbbVie Inc. (U.S.), Synoes Health, Inc. (U.S.), Piramal Enterprises Limited (India), Almac Group (U.K.), Albany Molecular Research Inc. (U.S.), Fareva Holding SA (France), and Jubilant Life Sciences Limited (India) among others.
Amidst this crisis, Meticulous Research® is continuously assessing the impact of COVID-19 pandemic on various sub-markets and enables global organizations to strategize for the post-COVID-19 world and sustain their growth. Let us know if you would like to assess the impact of COVID-19 on any industry here- https://www.meticulousresearch.com/custom-research
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