Contract pharmaceutical manufacturing are engaged in conducting various kinds of drug production and research activities for different pharmaceutical companies. In the present time, there is an extensive need for pharmaceutical contract research and manufacturing, as drug manufacturers are facing increased research and manufacturing costs resulting due to the expiration of many older drugs patents, competition from drug industry, and stringent government regulations for new drug development. Pharmaceutical manufacturers are capable to reduce manufacturing and research & development costs by outsourcing several processes that were previously done in-house, ranging from initial drug research studies to the entire manufacturing process.
Contract manufacturing organizations (CMOs) offers pre-formulation, formulation development, stability studies, method development, pre-clinical and clinical phase trial materials, late-stage clinical trial materials, scale-up, registration, and commercial drug production. For instance, in January 2020, Celltrion, a manufacturer of biosimilars from South Korea, planned to invest US$ 514 million over five years in its new plant in Wuhan, the biologics facility in China with a 120,000-liter capacity. The new facility is intended to develop and produce biologics for the local market as well as carry out contract work for the burgeoning industry of Chinese biotech firms.
Global contract pharmaceutical manufacturing market is estimated to be valued at US$ 178.94 billion in 2022 and expected to exhibit a CAGR of 9.3 % over the forecast period (2022-2030).
Figure 1: Global Contract Pharmaceutical Manufacturing Market Share (%) Analysis, By Service Type, 2022
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Increasing incidence of research and development in pharmaceutical manufacturing is expected to drive growth of the global contract pharmaceutical manufacturing market over the forecast period.
Demand for small molecules is considerably high compared to large molecules, owing to its various advantages in manufacturing and clinical trial studies. For instance, in November 2021, Pfizer Inc., U.S.-based multinational pharmaceutical and Biotechnology Corporation, announced the successful acquisition of Trillium Therapeutics, a clinical stage immuno-oncology company developing innovative therapies for the treatment of cancer. According to the terms of the acquisition, Pfizer will purchase all Trillium shares that are not already owned by Pfizer for a cash implied equity value of US$ 2.26 billion, or US$ 18.50 per share. This is 118% more expensive than Trillium's 60-day weighted average price.
Contract Pharmaceutical Manufacturing Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2021 | Market Size in 2022: | US$ 178.94 Bn |
Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
Forecast Period 2022 to 2030 CAGR: | 9.3 % | 2030 Value Projection: | US$ 363.74 Bn |
Geographies covered: |
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Segments covered: |
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Companies covered: |
Accenture plc, Cognizant Technology Solutions, ATOS SE, Catalent, Inc., Covance, Inc., Boehringer Ingelheim GmbH, Genpact Limited, Lonza Group, PAREXEL International Corporation, Quintiles Transnational Corporation, Abbvie, Inc., Baxter International Inc., Dr. Reddy’s Laboratories Ltd., Aurobindo Pharma, Pfizer, Inc., The Almac Group, Teva Pharmaceutical Industries Ltd. and Piramal Enterprises Ltd. |
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Growth Drivers: |
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Restraints & Challenges: |
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Figure 2: Global Contract Pharmaceutical Manufacturing Market (US$ Bn), by Region, 2022
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Presence of key market players and increasing partnership, expansion and agreement are attributing to the highest share of North America market in the global contract pharmaceutical manufacturing market
Increasing number of vendors entering into a number of strategic agreements, collaborations, and partnerships to improve their brand visibility and image and give themselves a competitive edge in the market, which is expected to drive growth of global contract pharmaceutical manufacturing market over the forecast period. For instance, on January 12, 2021, 5N Plus, global producer of specialty chemicals and engineered materials, announced that it has entered into a strategic agreement with Bozeman, Montana-based Microbion Corporation, for the development of Microbion’s new class of antibiotic and antibiofilm drugs. Under the terms of the agreement, 5N Plus has taken an equity stake in Microbion and responsibility for the manufacturing of Bismuth-based Active Pharmaceutical Ingredients (API) required in Microbion’s family of drug products, including Pravibismane, the API in the company’s lead drug product.
Global contract pharmaceutical manufacturing market: Key Developments
Global contract pharmaceutical manufacturing Market – Restraints
Increasing number of pharmaceutical companies to set up their own manufacturing site for the production and manufacturing of pharmaceutical products to reduce the cost hinders the growth of contract pharmaceutical manufacturing market. For instance, in December 2021, Pfizer, U.S. based multinational pharmaceutical and Biotechnology Corporation, invested US$ 68.5 Million in new state-of-the-art facility in Durham, North Carolina to further advance gene therapy capabilities.
Key Players
Major players operating in the global contract pharmaceutical manufacturing market include Accenture plc, Cognizant Technology Solutions, ATOS SE, Catalent, Inc., Covance, Inc., Boehringer Ingelheim GmbH, Genpact Limited, Lonza Group, PAREXEL International Corporation, Quintiles Transnational Corporation, Abbvie, Inc., Baxter International Inc., Dr. Reddy’s Laboratories Ltd., Aurobindo Pharma, Pfizer, Inc., The Almac Group, Teva Pharmaceutical Industries Ltd. and Piramal Enterprises Ltd.
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