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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

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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