A contract manufacturing organization (CMO) is a company that serves other companies in various sectors such as healthcare and pharmaceutical industry on a contract basis to provide comprehensive services from drug development through drug manufacturing.
Market Statistics:
The global healthcare CMO market is expected to surpass US$ 928.8 Mn in terms of value by the end of 2028.
Global Healthcare CMO Market: Drivers
Increasing adoption of CMO services is expected to propel growth of the global healthcare CMO market over the forecast period. For instance, in June 2020, PharmAbcine, a biotech company signed a CMO agreement with biologics contract development and manufacturing organization (CDMO) Binex for additional production of investigational Olinvacimab (TTAC-0001), PharmAbcine's leading antibody therapeutics pipeline in oncology.
Global Healthcare CMO Market: Opportunities
Expansion of services is expected to offer lucrative growth opportunities for players in the global healthcare CMO market. For instance, in July 2020, Cytovance Biologics announced the addition of Mass Spectrometry (Mass Spec) to its Analytical Development suite of services.
Global Healthcare CMO Market: Recent Developments
On May 03, 2021, Enteris BioPharma, Inc., a wholly-owned subsidiary of SWK Holdings Corporation have announced the expansion of its Boonton, NJ manufacturing facility and the launch of its CDMO business segment which will provide custom solutions for the formulation, development and manufacturing of solid oral doses for difficult to formulate BCS III and IV compounds.
In May 2021, Charles River Laboratories have agreed to acquire Vigene Biosciences, a CDMO specializing in viral vectors, in a deal worth up to US$ 350. The deal is expected to close in the third quarter in 2021
In May 2021, WuXi AppTec have announced to acquire CMAB Biopharma, a biologics CDMO headquartered in Suzhou which will strengthen its position in CMO market
Global Healthcare CMO Market: Restraints
Failure to deliver on-time supplies is expected to limit the market growth. Rise in research and development costs, shortage of trained internal sources, lack of proper infrastructure and well-trained technical workforce often present a major constraint to pharmaceutical companies, which prevent them from diversifying their product portfolio.
Global Healthcare CMO Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic is providing new opportunities for contract and development manufacturing organisations. Globally, as of 5:02pm CEST, 6 September 2021, there have been 220,563,227 confirmed cases of COVID-19, including 4,565,483 deaths, reported to WHO. As of 6 September 2021, a total of 5,352,927,296 vaccine doses have been administered. Thus, the pandemic has promoted growth in the vaccine contract manufacturing market worldwide as pharmaceutical companies adopt partnership strategies with contract manufacturers to develop COVID-19 vaccines.
Key Takeaways:
- The global healthcare CMO market was valued at US$ 283.5 Mn in 2020 and is forecast to reach a value of US$ 928.8 Mn by 2028 at a CAGR of 16.1% between 2021 and 2028.
- The Medical Device Contract Manufacturing Services segment was valued US$ 113.5 Mn in 2020 and is expected to witness a CAGR of 15.1% over the forecast period.
Market Trends
Major players in the market are focused on expanding their regional presence. For instance, in July 2020, MilliporeSigma started M Lab Collaboration Center in Shanghai, which offers customizable solutions to help advance drug development, including Pilot Scale and Process Development support labs that offer non-GMP (Good Manufacturing Practice) lab space.
Major players in the market are also focused on investing in order to boost R&D in the biopharma sector. For instance, in March 2020, Thermo Fisher Scientific, Inc. invested over US$ 475 million in order to accelerate R&D in the biopharma sector.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/healthcare-cmo-market-4622
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
July 2020: Albany Molecular Research Inc. announced support to ViralClear Pharmaceuticals for R&D to investigate the potential of merimepodib to fight SARS-CoV-2, the virus that causes COVID-19, either as a stand-alone treatment or in combination with other antiviral agents or immune modulators.
June 2020: Samsung Biologics signed a letter of intent for a CMO deal worth US$ 317.1 million with a European client.
