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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 complexity in manufacturing process of biomolecules, as they consists of different shape, size, and behavior with significantly complex process than pharmaceutical drugs. Contract manufacturing organizations provide services from development of biologics to commercial scale production. Few companies also provide cell line development, fermentation, process optimization, and analytical characterization. Improved efficiency, weak product pipeline, and increasing price pressure is expected to favor the growth of biopharmaceutical contract manufacturing market in near future.

Increasing outsourcing services in biopharmaceutical industry is expected to fuel the growth of biopharmaceutical contract manufacturing market

Key players operating in the market are focusing on facility expansion in order to increase their geographical presence in the global market. In January 2020, Celltrion Group, a biopharmaceutical company plans to build biopharmaceutical plant in China. The new plant is focusing on to carry out large scale contract manufacturing organization for the Chinese market with a plant capacity of 120,000 liters, which will be the largest biopharmaceutical plant in the China.

Moreover, increasing adoption of inorganic growth strategies such as merger and acquisition by key players operating in the market is expected to drive market growth over the forecast period. In January 2020, Cognate BioServices, a contract development and manufacturing organization (CDMO) specialized in cell and cell-mediated gene therapy products has acquired the Cobra Biologics, a CDMO specialized in providing development and manufacturing services for plasmid DNA and viral vector. With this acquisition Cognate BioServices deliver drug development and manufacturing solutions to the cell and gene immunotherapy and regenerative medicine industry around the world.

In August 2019, Patheon merged with Royal DSM to form private company DPx, a Contract Manufacturing Organization (CMO). The new company comprises of three businesses - fine chemicals and API production, pharmaceutical services including contract manufacturing and proprietary products and technologies falling under the banner of life sciences acquired by Patheon in October 2012.

Furthermore, key players operating in the market are focusing on strategic partnership for expanding its contract manufacturing facility. For instance in January 2020, Indapta Therapeutics and Lonza, a biopharmaceutical company announced a strategic partnership to advance a next-generation, off-the-shelf, allogeneic immuno-oncology therapy. Under the terms of this partnership, Lonza will manufacture Indapta’s off-the-shelf, allogeneic G-NK cell therapy under current good manufacturing practices (cGMP) for use in clinical studies. Similarly, Indapta will leverage Lonza’s process development capabilities and expertise to ensure a robust, reproducible and scalable cGMP process. Process development and manufacturing will take place in Lonza's state-of-the-art cell and gene therapy manufacturing facility in Houston (TX), USA.

Reducing cost and focusing on core strengths is expected to fuel the growth of biopharmaceutical contract manufacturing market

Companies operating in the global market are focusing on technological advancement such as use of Artificial Intelligence in biologics manufacturing is anticipated to propel the market growth over the forecast period. For instance in January 2020, iBioPharma Inc., a biotechnology company entered into collaboration EdgePoint AI, a division of Mateon Therapeutics to use EdgePoint’s proprietary artificial intelligence (AI)/blockchain-driven vision system for pharmaceutical manufacturing which known as TrustPoint Fabric. It provides highest level of compliance to the pharmaceutical industry’s standards for data integrity and enhanced automation capabilities which are expected to lower operating costs while improving quality for clients of iBio’s biologics contract development and manufacturing services.

Besides, existing companies are investing to increase its manufacturing capabilities. In October 2019, Mesoblast, an Australian-based regenerative medicine company and Lonza entered into an agreement for commercial manufacturing of Mesoblast’s allogeneic (off-the-shelf) cell therapy product candidate, remestemcel-L. The agreement enables Lonza to expand its Singapore cGMP facilities and also anticipates to introduce new technologies and process improvements which are expected to result in significant increase in its manufacturing yields and efficiencies.

The key players in operating in the global biopharmaceutical contract manufacturing market include Lonza Group Ltd., ProBioGen AG, Boehringher Ingelheim, BIOMEVA GmbH, Celonic GmbH, Sandoz, Fujifilm Diosynth Biotechnology, and Rentschler Biotechnologie.

Global Biopharmaceutical Contract Manufacturing Market Taxonomy:

On the basis of contract type, product type, and therapeutic application, global biopharmaceutical contract manufacturing market is segmented into:

By Contract Type:

  • Active Pharmaceutical Ingredient (API)
  • Fill-And-Finished

By Product Type:

  • Interferons
  • Monoclonal Antibodies
  • Recombinant Hormone
  • Proteins
  • Vaccines
  • Vitamins
  • Insulin
  • Others

By Therapeutic Applications:

  • Oncology
  • Autoimmune Diseases
  • Metabolic Diseases
  • Cardiovascular Diseases
  • Neurology
  • Infectious Diseases
  • Others

By Region:

  • North America
  • Europe
  • Latin America
  • Asia Pacific
  • Middle East
  • Africa
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