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Phase-Xs | Biologics & Biosimilars | Coherent Market Insights

Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

The demand for generic products is high in the pharmaceutical market. Moreover, majority of healthcare companies are gradually outsourcing manufacturing activities to contract manufacturing organizations (CMOs).

The global healthcare CMO market is estimated to be valued at US$ 326.8 million in 2021 and is expected to exhibit a CAGR of 16.1 % over the forecast period (2021-2028).

Recent Developments:

On June 18, 2021, Danaher has signed an agreement to acquire US-based CDMO Company Aldevron from EQT Private Equity for an enterprise value of nearly US$ 9.6 Bn in cash.

On February 17, 2021, Charles River Laboratories International, Inc. has signed a definitive agreement to acquire Cognate BioServices, Inc. which is a premier, cell and gene therapy contract development and manufacturing organization (CDMO). This deal is expected to complete for around US$ 875 million in cash

In January 2020, Discovery Labs and Deerfield Management Company have formed The Center for Breakthrough Medicines, a Contract Development and Manufacturing Organization (CDMO) and specialty investment company, to alleviate the critical lack of capacity that is preventing patients from accessing critically needed cell and gene therapies.

North America held dominant position in the global healthcare CMO market in 2020, accounting for 32.6% share in terms of value, followed by Europe and Asia Pacific, respectively. Dominance of North America healthcare CDMO market in 2020 can be attributed to recent acquisitions in the region, increasing demand for medical devices in the region, and presence of advanced medical infrastructure.

Figure 1. Global Healthcare CMO Market Value (US$ Mn), by Region, 2020

Healthcare CMO  | Coherent Market Insights

Global Healthcare CMO Market: Drivers

Patent expirations of drugs is expected to propel growth of the global healthcare CMO market over the forecast period. For instance, Eli Lilly and Company’s drug, Cialis used for treatment of erectile dysfunction, lost patent protection in September 2018 and patent for YAZ (drospirenone/ethinylestradiol), which provides an oral contraceptive regimen, is set to expire in 2021. 

Moreover, increasing cost of drug development is also expected to aid in growth of the market. For instance, the cost of drug development was US$ 2.6 billion, which included average out-of-pocket costs of US$ 1.4 billion and time costs of US$ 1.2 billion, according to a study by the Tufts Center for the Study of Drug Development published in the Journal of Health Economics in May 2019.

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Healthcare CMO Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 326.8 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 16.1% 2028 Value Projection: US$ 928.8 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Service: Pharmaceutical Contract Manufacturing Services, Medical Device Contract Manufacturing Services
Companies covered:

Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.

Growth Drivers:
  • Patent expirations of drugs
  • Increasing cost of drug development
Restraints & Challenges:
  • Varying regulatory scenarios around the world
  • Presence of risks such as concerns about quality of products, intellectual property loss and non-compliance of regulatory requirements

Global Healthcare CMO Market: Opportunities

Increasing investment in the pharmaceutical sector is expected to offer lucrative growth opportunities for players in the global healthcare CMO market. For instance, according to The European Federation of Pharmaceutical Industries and Associations’ Key Data 2019, the pharmaceutical sector in Europe invested US$ 19, 509 million in 2000, which increased to US$ 39,895 million (est.) in 2018.

Moreover, R&D efforts for vaccine against Covid-19 is also expected to aid in growth of the market.

Market Trends

Major players in the market are focused on adopting partnership strategies to enhance their market share. For instance, in July 2020, Emergent BioSolutions Inc. signed a five-year agreement with Johnson & Johnson to manufacture its Covid-19 vaccine candidate.

Major players in the market are also focused on expanding their production capacity. For instance, in May 2020, Thermo Fisher Scientific Inc. announced US$ 180 million project to more than double the company’s commercial viral vector capacity to support increasing demand for the development and manufacture of gene therapies and vaccines.

Figure 2. Global Healthcare CMO Market Share, By Service, 2020

Healthcare CMO  | Coherent Market Insights

Key Takeaways of the Graph:

  • Among Service segment, the Pharmaceutical Contract Manufacturing Services held dominant position in the market and accounted for 60.0% share in the global healthcare CDMO market in 2020. The segment is expected to reach US$ 583.4 million in 2028.
  • Heavy investment in R&D by pharmaceutical companies, recent manufacturing & development contracts awarded by pharmaceutical companies to CDMO, and new drug developments in recent years are some of the major driving factors responsible for the growth of Pharmaceutical Contract Manufacturing Services segment during the forecast period

Global Healthcare CMO Market: Restraints

Strategic outsourcing of manufacturing practices brings along risks such as concerns about quality of products, intellectual property loss and non-compliance of regulatory requirements. Thus, quality concerns and non-compliance of regulatory requirements is expected to hamper growth of the market.

Moreover, varying regulatory scenarios around the world is also expected to limit the market growth. 

Global Healthcare CMO Market: Competitive Landscape

Major players operating in the global healthcare CMO market include, Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.

Global Healthcare CMO Market: Key Developments

Major players in the market are focused on adopting partnership strategies to enhance their market share. For instance, in June 2020, Symbiosis Pharmaceutical Services signed a supply agreement with AstraZeneca for sterile manufacture of the COVID-19 recombinant adenovirus vaccine known as AZD1222 for AstraZeneca sponsored clinical trials.

Similarly, in May 2020, Thermo Fisher Scientific Inc. partnered with CSL Limited, a biotechnology company, to help meet the growing demand for biologic therapies while also accelerating CSL's broader manufacturing objectives.

A contract manufacturing organization, also known as a contract manufacturing and development organization, is an organization that serves pharmaceutical companies on a contract basis to offer comprehensive services from invention through commercialization to provide pharmaceuticals for healthcare. The primary function of these organizations is to provide the pharmaceutical and biotechnology industries with products that are designed, developed and manufactured under contract. Contract manufacturers usually build their business in close association with the pharmaceutical and bio-tech groups. As a result of this close relationship, these organizations can offer the same quality and quantity of products that would be available through the licensed facility. There are a number of advantages to contract manufacturing from a contract manufacturer.

Market Dynamics:

Increasing investment in R&D of drugs is expected to propel growth of the global healthcare CMO market over the forecast period. For instance, in September 2021, Aragen Life Sciences announced its plans to invest in expanding infrastructure in Hyderabad and Bengaluru (India) for drug discovery, and building a new facility in the U.S to manufacture biologics. Similarly, in August 2021, Curia announced plans to expand its commercial manufacturing capacity at its Rensselaer, NY facility.

Key features of the study:

  • This report provides in-depth analysis of the global healthcare CMO market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global healthcare CMO market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global healthcare CMO market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global healthcare CMO market

Detailed Segmentation:

  • Global Healthcare CMO Market , By Service:
    • Pharmaceutical Contract Manufacturing Services
    • Medical Device Contract Manufacturing Services
  • Global Healthcare CMO Market, By Region:
    • North America
      • North America Healthcare CMO Market , By Service:
        • Pharmaceutical Contract Manufacturing Services
        • Medical Device Contract Manufacturing Services
      • By Country
        • U.S.
        • Canada
    • Latin America
      • Latin America Healthcare CMO Market , By Service:
        • Pharmaceutical Contract Manufacturing Services
        • Medical Device Contract Manufacturing Services
      • By Country
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • Europe Healthcare CMO Market , By Service:
        • Pharmaceutical Contract Manufacturing Services
        • Medical Device Contract Manufacturing Services
      • By Country
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Asia Pacific Healthcare CMO Market , By Service:
        • Pharmaceutical Contract Manufacturing Services
        • Medical Device Contract Manufacturing Services
      • By Country
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Middle East
      • Middle East Healthcare CMO Market , By Service:
        • Pharmaceutical Contract Manufacturing Services
        • Medical Device Contract Manufacturing Services
      • By Country
        • GCC
        • Israel
        • Rest of Middle East
    • Africa
      • Africa Healthcare CMO Market , By Service:
        • Pharmaceutical Contract Manufacturing Services
        • Medical Device Contract Manufacturing Services
      • By Country
        • North Africa
        • Central Africa
        • South Africa
  • Company Profiles
    • Accellent, Inc.*
      • Company Highlights
      • Products Portfolio
      • Key Highlights
      • Financial Performance
      • Strategy
    • Boehringer Ingelheim GmbH
    • Catalent Pharma Solutions, Inc.
    • DSM
    • Fareva
    • Greatbatch, Inc.
    • Lonza Group
    • Patheon, Inc. (Thermo Fisher Scientific Inc.)
    • Piramal Healthcare
    • Binex
    • Cytovance Biologics
    • Emergent BioSolutions Inc.
    • MilliporeSigma
    • Symbiosis Pharmaceutical Services
    • Albany Molecular Research Inc.
    • Samsung Biologics

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

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Service
      • Market Snippet, By End User
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Impact Analysis
    • Key Developments
    • Technological Advancement
    • Regulatory Scenario
    • Pipeline Analysis
  4. Global Healthcare CMO Market, By Service, 2017 – 2028 (US$ Mn)
    • Introduction
      • Market Share Analysis, 2021 and 2028 (%)
      • Y-o-Y Growth Analysis, 2018–2028
      • Segment Trends
    • Pharmaceutical Contract Manufacturing Services
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 – 2028, (US$ Mn)
      • Segment Trends
    • Medical Device Contract Manufacturing Services
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 – 2028, (US$ Mn)
      • Segment Trends
  5. Global Healthcare CMO Market, By Region, 2017 – 2028 (US$ Mn)
    • Introduction
      • Market Share Analysis, 2021 and 2028 (%)
      • Y-o-Y Growth Analysis, 2018–2028
      • Regional Trends
    • North America
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Service, 2017 – 2028, (US$ Mn)
      • Market Size and Forecast, and Y-o-Y Growth, By Country, 2017 – 2028, (US$ Mn)
        • U.S.
        • Canada
    • Latin America
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Service, 2017 – 2028, (US$ Mn)
      • Market Size and Forecast, and Y-o-Y Growth, By Country, 2017 – 2028, (US$ Mn)
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Service, 2017 – 2028, (US$ Mn)
      • Market Size and Forecast, and Y-o-Y Growth, By Country, 2017 – 2028, (US$ Mn)
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Service, 2017 – 2028, (US$ Mn)
      • Market Size and Forecast, and Y-o-Y Growth, By Country, 2017 – 2028, (US$ Mn)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Middle East
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Service, 2017 – 2028, (US$ Mn)
      • Market Size and Forecast, and Y-o-Y Growth, By Country, 2017 – 2028, (US$ Mn)
        • GCC
        • Israel
        • Rest of Middle East
    • Africa
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, By Service, 2017 – 2028, (US$ Mn)
      • Market Size and Forecast, and Y-o-Y Growth, By Country, 2017 – 2028, (US$ Mn)
        • North Africa
        • Central Africa
        • South Africa
  6. Competitive Landscape
    • Company Profiles
      • Accellent, Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Boehringer Ingelheim GmbH
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Catalent Pharma Solutions, Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • DSM
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Fareva, Greatbatch, Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Lonza Group
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Patheon, Inc. (Thermo Fisher Scientific Inc.)
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Piramal Healthcare
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Binex
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Cytovance Biologics
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Emergent BioSolutions Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • MilliporeSigma
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Symbiosis Pharmaceutical Services
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Albany Molecular Research Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Samsung Biologics
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
      • Symmetry Medical, Inc.
        • Company Overview
        • Product Portfolio
        • Key Developments
        • Financial Performance
        • Strategies
  7. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 32 market data tables and 24 figures on “Healthcare CMO Market – Global forecast to 2027.

FAQgrowicon

Frequently Asked Questions

Patent expirations of drugs and increasing cost of drug development are the factors boosting demand for healthcare CMO.
Varying regulatory scenarios around the world and presence of risks such as concerns about quality of products, intellectual property loss and non-compliance of regulatory requirements are key factors hampering the growth of the market.
The market was valued at US$ 283.5 million in 2020.
North America held dominant position in market in 2020.
The market is witnessing adoption of partnership strategies to enhance market share.
Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.
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