The Pharmaceutical CDMO market was valued USD 148.5 billion in 2019, and it is expected to reach USD 224.9 billion by 2025, registering a CAGR of 7%,…

June 03, 2020 16:21 ET | Source: ReportLinker

New York, June 03, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05786697/?utm_source=GNW

- The biggest factor driving the growth of CMOs in the pharmaceutical industry is the growing need for state-of-the-art processes and production technologies, which have proven highly effective in meeting regulatory requirements. - US is one of the largest R&D spenders in the pharmaceutical and biotechnology sector. According to Axios, a prominent online news company in the United States, as of 2018, pharmaceutical industries in the country had the tenth-highest average after-tax profit levels, when compared to more than 100 different industries. While drug companies are responsible for 23% of the US health revenue, they also make 63% of the total profits. - R&D sections of several pharmaceutical companies, especially operating at small scales, were condensed after the emergence of CRO players. As more CROs have started to offer research services with valuable cost, they won the competition with in-house pharmaceutical R&D departments. CROs also follow several strategies to stay ahead of top pharmaceutical players. - The CMO/CDMO service sector is uniquely positioned to address some of the challenges that drug developers are facing amid the COVID-19 pandemic. This pandemic has impacted multiple aspects of the pharma and biopharma industry, from drug development, clinical trials, supplies, manufacturing, to supply chain logistics. However, the drug shortages due to COVID-19 are limited, and they are expected to remain so for short-term, due to stockpiles of pharmaceuticals, APIs, globally.

Key Market Trends Increasing Investment in R&D to Drive the Market Growth

- The United States is the worlds largest market for drugs, and accounts for almost half of the R&D spending in the 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 outsourcing units. - The biggest Chinese professional manufacturer of dermatology and anti-tuberculosis drug products, Huapont, is one of the fastest-growing pharmaceutical manufacturers in China, mainly dependent on product R&D and market expansion. - CRO/CMOs are able toleverage their expertise, owing to their R&D and complex manufacturing capabilities, to fill the needs of the large generic, big pharmaceutical and biotech companies. - A major stake of R&D investments as well as capacity expansions, are likely in the injectable and sterile liquid dose formulations segment. Small biotech firms get access to specialized knowledge and resources, which help them expedite their R&D activities.

Asia-Pacific Expected to Witness Highest Growth in CRO Market

- Over the forecast period, Asia-Pacific is expected to witness the highest growth in the CRO market, owing to the low cost offered by the region, as compared to the United States and other developed economies. Additionally, growing incidences of chronic and lifestyle diseases, such as diabetes and heart disease, coupled with ease of patient recruitment and availability of expertise for clinical trials, are few driving factors boosting growth in the region. - With increasing privatization of clinical trials, there has been an increase in the outsourcing of research processes in developing regions, such as China and India. For instance, the market is witnessing increased outsourcing of research services, such as Clinical Data Management, Pharmacovigilance, Biostatistics, etc., by large pharmaceuticals. - Growing investments by several pharmaceutical and biopharmaceutical drugs manufacturing companies are also supporting the growth of the CRO market in the region. As part of its five-year Research, Innovation, and Enterprise 2020 plan, the Singaporean government has committed to invest nearly USD 2.4 billion, in advancing manufacturing and engineering in the pharmaceutical market. - In January 2019, Lambda, headquartered in India, announced the acquisition of US-based Novum Pharmaceutical Research Services, in a move to increase its presence in the United States.

Competitive Landscape The CDMO Market is consolidated in nature. The need for continued research and development related expenses push forward for the extension of business opportunities. In the pharmaceutical industry, medicine is continuously tested and are most profitable during the patent period, the emergence of competitive solution can hamper the rate of return. Such factors push for continued innovation and fast track the introduction time to market. Major players include Catalent Inc., Recipharm AB, Jubilant Life Sciences Ltd., among others.

- February 2020 - Catalent, has signed an agreement with Zumutor Biologics, Inc., to manufacture Zumutors, ZM008, for the treatment of solid tumors. Zumutor is a biologics company that develops novel immuno-oncotherapeutics to drive transformational improvements in cancer treatment. - December 2019 - Thermo Fisher Scientific Inc. opened its new USD 90 million viral vector CDMO (contract development and manufacturing organization) site in Lexington, Mass. The 50,000-square-foot facility will add more than 200 jobs and support the development, testing and manufacture of viral vectors, which are critical to advancing new life-saving gene and cell therapies worldwide.

Reasons to Purchase this report: - The market estimate (ME) sheet in Excel format - 3 months of analyst support Read the full report: https://www.reportlinker.com/p05786697/?utm_source=GNW

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The Pharmaceutical CDMO market was valued USD 148.5 billion in 2019, and it is expected to reach USD 224.9 billion by 2025, registering a CAGR of 7%,...