all report title image
  • Published On : Aug 2022
  • Code : CMI2397
  • Industry : Pharmaceutical
  • Pages : 224
  • Formats :

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

Contract Pharmaceutical Manufacturing  | Coherent Market Insights

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.

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Contract Pharmaceutical Manufacturing Market Report Coverage

Report Coverage Details
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:
  • Region: North America, Latin America, Europe, Asia Pacific, Middle East, Africa
Segments covered:
  • By Service Type: Contract Manufacturing Organization (CMO) (API Manufacturing, Final dosage form manufacturing, Packaging), Contract Research Organization (CRO) (Drug Discovery, Preclinical studies, Early Phase I - IIa, Phase IIa - III, Phase IIIb - IV, Medical coding and writing, Monitoring, Clinical Data Management, Bio-statistics, Site management, Protocol development)
  • By Molecule Type: Small Molecules, Large Molecules
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.

Growth Drivers:
  • Increasing research and development in pharmaceutical manufacturing
  • Increasing number of partnership, expansion and agreement
Restraints & Challenges:
  • Increasing number of pharmaceutical companies to set up their own manufacturing site for the production and manufacturing of pharmaceutical products

Figure 2: Global Contract Pharmaceutical Manufacturing Market (US$ Bn), by Region, 2022

Contract Pharmaceutical Manufacturing  | Coherent Market Insights

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

  • For instance, in November 2020, Catalent, global provider of advanced delivery technologies, development, and manufacturing solutions for drugs, biologics, cell and gene therapies, and consumer health products, announced the acquisition of Bone Therapeutics’ cell therapy manufacturing subsidiary, Skeletal Cell Therapy Support SA (SCTS), including all of its assets located in Gosselies, Belgium. This acquisition will help to expand its industry-leading cell therapy capabilities and advanced clinical and commercial supply, and create an integrated European center of excellence in cell therapy
  • For instance, in November 2021, Baxter International Inc., U.S. based multinational health care company, announced an approximately US$ 100 million expansion of its sterile fill/finish manufacturing facility located in Halle/Westfalen, Germany. This facility is operated by BioPharma Solutions (BPS), a business unit of Baxter in partnering with pharmaceutical and biotechnology companies on the development and contract manufacturing of drug product for parenteral (injectable) pharmaceuticals.
  • For instance, in April 2021, Bushu Pharmaceuticals Ltd., a pharmaceutical manufacturer entered into a business alliance agreement with Suzuken Co., Ltd., a Japan-based company mainly engaged in the manufacture and sale of pharmaceutical products, such as biopharmaceuticals, regenerative medicines, and orphan drugs for rare diseases, that require strict temperature, inventory, and security control has been increasing, to offer a service that provides comprehensive support for new product launches for specialty pharmaceutical manufacturers looking to enter the Japanese market.

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.

Pharmaceutical companies are now pushing hard to reduce overall manufacturing and research costs by outsourcing various processes related to research, development and manufacturing. Furthermore, patent expiration and generic drug competition, continue to fuel demand for pharmaceutical contract manufacturing organizations in the market.

Rising number of food and drug administration (FDA) approvals and clinical trials are supporting growth of biopharmaceutical industry, which in turn is fueling growth of the contract pharmaceutical manufacturing market growth. For instance, according to ClinicalTrials.gov, on 26 July 2022, there were around 422,923 clinical trial studies registered in US and non US. In addition, according to the percentage of Registered Studies by Location and Percentage of Recruiting Studies by Location, U.S. alone contributed for 32% and 33% respectively in the clinical trials study.

Furthermore, stringent regulatory policies for clinical research studies and manufacturing make entire drug manufacturing process more complex, as it requires more resources to develop new drugs and biologics. These processes require expertise in broad scientific disciplines of preclinical, clinical, ancillary clinical in chemistry, packaging, manufacturing, project management, and regulatory affairs, which are provided by the CROs and CMOs. This is considered as a major reason for pharmaceutical companies to outsource clinical trials and manufacturing processes. 

Market Dynamics

Contract manufacturing organizations (CMOs) provide wide range of manufacturing services, which include contract packaging, quality testing, and development service to pharmaceutical and biotechnology industries. Biopharmaceutical companies prefer CMOs due to the complexity involved in manufacturing process of biomolecules, as it consists of different shape, size, and behavior with significantly complex process than pharmaceutical drugs. Furthermore, by outsourcing manufacturing capabilities from contract manufacturing organization, allows recruiter firms to focus more on the research and development (R&D), product development, and marketing aspects.

Pharmaceutical market is increasingly concentered with generic products and is highly competitive with various companies located in Asia Pacific, which are entering into the developed markets such as the U.S., Germany, France, and the U.K. Rising number of patents expiring in the near future serves to be a major opportunity for generic drugs manufacturers to prosper in the market.

Furthermore, mergers and acquisitions between generic drug manufacturers, with major players focusing on enhancing their product portfolio through inorganic strategies, will support the addition of generic drug portfolio into company’s offering and thus, generating demand for CMOs to fulfil it.

For instance, in December 2021, Moderna, Inc., an American pharmaceutical and biotechnology company, and RECIPHARM, a pharmaceutical contract development and manufacturing organizations, announced an agreement to support formulation and fill-finish a part of the Moderna COVID-19 Vaccine supply outside of the U.S. The activity was performed in Recipharm’s drug product manufacturing facility located in France.

Key features of the study:

  • This report provides in-depth analysis of the global contract pharmaceutical manufacturing market, its market size (US$ Billion) and Compound Annual Growth Rate (CAGR %) for the forecast period (2022 – 2030), considering 2021, as the base year.
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by the leading players
  • It profiles leading players in the global contract pharmaceutical manufacturing market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies.
  • Key companies covered as a part of this study includes 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.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decision regarding their future type upgradation, market expansion, and marketing tactics.
  • The global contract pharmaceutical manufacturing market report caters to various stakeholders in this industry including investors, researchers, contract pharmaceutical manufacturers, distributors, new entrants, and financial analysts.
  • Stakeholders would have ease in decision making through the various strategy matrices used in analyzing the global contract pharmaceutical manufacturing market.

Detailed Segmentation:

  • Global contract pharmaceutical manufacturing market, By Service Type:
    • Contract Manufacturing Organization (CMO)
      • API Manufacturing
      • Final dosage form manufacturing
      • Packaging
    • Contract Research Organization (CRO)
      • Drug Discovery
      • Preclinical studies
      • Early Phase I - IIa
      • Phase IIa - III
      • Phase IIIb - IV
      • Medical coding and writing
      • Monitoring
      • Clinical Data Management
      • Bio-statistics
      • Site management
      • Protocol development
  • Global Contract Pharmaceutical Manufacturing Market, By Molecule Type:
    • Small Molecules
    • Large Molecules
  • Global Contract Pharmaceutical Manufacturing Market, By Geography:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Europe
      • By Country:
        • U.K.
        • Germany
        • Italy
        • Spain
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East
      • By Country:
        • GCC
        • Israel
        • Rest of Middle Eas
    • Africa
      • By Country:
        • North Africa
        • Central Africa
        • South Africa
  • Company Profiles
    • Accenture plc*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
    • 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.
    • Reddy’s Laboratories Ltd.
    • Aurobindo Pharma
    • Pfizer, Inc.
    • The Almac Group
    • Teva Pharmaceutical Industries Ltd.
    • Piramal Enterprises Ltd.

 “*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The global contract pharmaceutical manufacturing market is estimated to surpass US$ 363.74 Billion by 2030.
Major players operating in the 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
Contract Manufacturing Organization (CMO) which belongs to the service type segment, is the prominent segment in the market, owing to increasing incidence of research and development in pharmaceutical manufacturing.
Increasing research and development in the pharmaceutical manufacturing is one the major factors that is expected to propel growth of market over the forecast period.
The market is estimated to exhibit a CAGR of 9.3% over the forecast period.
Among regions, North America is expected to witness significant growth over the forecast period.

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