The demand for generic products is high in the pharmaceutical market in Latin America. Moreover, majority of pharmaceutical companies in are gradually outsourcing manufacturing activities to contract manufacturing organizations (CMO).
The Latin America Pharmaceutical Products CMO Market is estimated to be valued at US$ 15,173.6 million in 2020 and is expected to exhibit a CAGR of 14.7% over the forecast period (2020-2027).
Figure 1. Latin America Pharmaceutical Products CMO Market Share (%), By Country, 2020
Increasing prevalence of chronic disease is expected to drive the market growth over the forecast period
For instance, according to Incidência de Câncer no Brasil, the estimated number of new cases of cancer was 600,000, excluding cases of non-melanoma skin cancer during 2018-2019 biennium, in Brazil.
Major players in the market are also focused on R&D of new products to expand their product portfolio. For instance, in December 2019, FerGene, a new gene therapy company formed as an alliance between Ferring Pharmaceuticals and Blackstone Life Sciences, announced positive results from a clinical trial that assessed the efficacy of nadofaragene firadenovec (rAd-IFN/Syn3), an investigational gene therapy, for the treatment of high-grade, Bacillus Calmette-Guérin unresponsive non-muscle invasive bladder cancer.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2020: | US$ 15,173.6 Mn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 14.7% | 2027 Value Projection: | US$ 39,714.0 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
BASF SE, Bayer AG, Boehringer Ingelheim GmbH, F. Hoffmann-La Roche Ltd., Merck & Co., Inc., Novartis AG, Pfizer, Inc., Pisa Farmacéutica, Fresenius SE & Co. KGaA, Takeda Pharmaceutical Company Limited, Ferring Pharmaceuticals, Inc., and Landsteiner Scientific |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Figure 2. Latin America Pharmaceutical Products CMO Market Share (%), by Product Type, 2020
Latin America Pharmaceutical Products CMO Market – Impact of Coronavirus (Covid-19) Pandemic
Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe and the World Health Organization has declared it a public health emergency. According to the World Health Organization’s report, the manifestation of coronavirus disease (COVID-19) has resulted in more than 94.9 million infected individuals worldwide as of January 20th 2021.
Furthermore, players operating in the Latin America pharmaceutical products CMO market are facing major challenges on various fronts due to the COVID-19 pandemic. The major challenges include supply of raw materials required for manufacturing product due to irregularities in transportation facility. Moreover, distributors of products are experiencing irregular demand for products from the retailers due to increasing number of patients suffering from COVID-19 and other life threatening disorders.
Latin America Pharmaceutical Products CMO Market Restraint
The pharmaceutical industry in Mexico does not operate through an established system of reimbursement and there is minimal reimbursement offered outside the hospital settings. Reimbursement is limited to generic drugs, based on health technology assessment and to the under privileged population. Such scenario is expected to hinder growth of Latin America Pharmaceutical Products CMO Market.
Key Players
Major players operating in the Latin America pharmaceutical products CMO market include BASF SE, Bayer AG, Boehringer Ingelheim GmbH, F. Hoffmann-La Roche Ltd., Merck & Co., Inc., Novartis AG, Pfizer, Inc., Pisa Farmacéutica, Fresenius SE & Co. KGaA, Takeda Pharmaceutical Company Limited, Ferring Pharmaceuticals, Inc., and Landsteiner Scientific
Pharmaceutical products CMO provide wide range of manufacturing services, which include contract packaging, quality testing, and development service to pharmaceutical and biotechnology industries. Contract manufacturing organizations offer services from development of biologics to commercial scale production.
Market Dynamics
The Latin America pharmaceutical products CMO market is expected to witness significant growth during the forecast period, owing to the increasing expansion of international pharmaceutical companies in Latin America. For instance, in April 2020, the U.S. pharmaceutical company and French corporation Gennisium Pharma entered into the exclusive agreement under which m8 Pharmaceuticals has the exclusive rights to register and commercialize a more suitable formulation of an already existing orphan drug for apnea in Mexico and Brazil. Moreover, additional pipeline products for the treatment of conditions prevalent in premature newborn patients are also included in this partnership.
Low healthcare expenditure is expected to hinder growth of Latin America pharmaceutical products CMO market. For instance, according to the survey by Brazil’s Federal Council of Medicine in 2018, per capita public spending on health care in Brazil did not increase above the country’s official inflation, which rose by 80% from 2008 to 2017.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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