Pharmaceutical CDMO Services Market

Market Insights:

The Contract Development and Manufacturing Organization (CDMO) industry began as a niche business decades ago, offering pharmaceutical companies specialty services and manufacturing capacities. The emergence of CDMOs was primarily attributed to pharmaceutical company failures due to challenged competencies and financial constraints. As a result, in order to reduce the risk of overcapacity and financial burden, the demand for development and manufacturing outsourcing has increased.

In the current environment of increased pricing pressure from payers, pharmaceutical companies are increasingly outsourcing their pharmaceutical manufacturing processes to CDMOs in order to reduce operational expenses. Furthermore, a growing number of companies are refocusing on their core competencies, therefore initiating divestitures of in-house capacities in critical areas and increasing dependence on CDMOs in other processes.

CDMOs also play a critical role in offering additional capacities and mitigating the risk of supply shortages by providing additional manufacturing and development sites and backup facilities. Such moving of manufacturing facilities is highly desirable as it reduces time to market. Issues regarding documentation and quality of the drug manufacturing process during regulatory reviews can lead to delays in marketing authorization. Therefore, for pharmaceutical companies, prompt quality standards with proven reliability are a definitive key to outsourcing to CDMOs.

Growing pharmaceutical consumption, the evolution of a robust drug pipeline, the increasing rate of NDA and BLA approvals, the increasing number of underdevelopment biologic drugs, the entry of small startups with no manufacturing capacity, increasing patent expirations, and other factors are driving the global pharmaceutical CDMO services market. Other attributes contributing to the growth of this market are the increasing complexity of small and large-molecule drugs, the greater need for cost efficiencies, and convenient access to proprietary technologies.

CDMOs are characterized by offering a wide range of services, having a global footprint, and helping to simplify the supply chain while fulfilling expectations in regional markets. Furthermore, in order to save costs, drug companies are aiming to reduce the extent of their supplier network to select companies that provide a wide range of services for several products. Likewise, virtual companies and specialty and generic pharma firms also demand a range of services for development and production through supply chain support. Hence, pharmaceutical companies will continue to outsource more and more of these development and manufacturing processes.

Market Synopsis

Drug Substance Development and Manufacturing: Leading the Global Market

Biopharmaceutical contract manufacturers are expanding their capacities as drug sponsors make significant in-house investments. Most of these investments are made by large contract development and manufacturing organizations to offer full support to drug manufacturers from drug discovery to commercial manufacturing. Many of these firms are industry leaders and are increasingly investing to meet the possible increased demand for their service offerings.

Other CDMO companies are focusing on offering contract development and manufacturing services for next-generation technologies requiring highly specialized capabilities and, in certain cases, the development of novel technologies and processes for prompt commercialization.

Innovator Drugs to Acquire Renewed Interest During the Forecast Period

CDMOs play an important role in the successful development of innovative small-molecule drug candidates, as these important activities are oftentimes achieved through outsourcing to CDMOs. CDMO activities can vary greatly depending on the services they provide, ranging from one-stop shops to specific expertise focusing on the development and manufacture of innovative APIs.

Irrespective of the range of CDMO service offerings, these organizations today are witnessing a growing demand for GMP manufacturing and drug substance development for innovative small-molecule drugs. Of all the indications being investigated for API manufacturing, small molecules are in the highest demand, and it is likely to remain strong for the coming years.

North America to Dominate the Global Market, Attributed to the Proliferation of Service Providers and Improved Funding

CDMO services for generic drugs have a huge growth opportunity in North America. The traditional CMO services in this region are not willing to take the risk of manufacturing generics at low-profit margins. However, as rising drug prices force companies to enter the generic market, CDMOs with unique expertise will benefit from high generic demand.

Furthermore, the development of super generics is also leveraging the status of CDMOs with niche dosage forms such as inhalation and transdermal technologies. High production costs are the key factor driving the growth of the CDMO market in North America. There is also a growing number of CDMOs in emerging markets in Asia and the Pacific that are building specialized and general product development and manufacturing facilities.

Currently, the global pharmaceutical CDMO market is highly fragmented, with the largest companies together holding less than 1%% of the global market share. There are significant consolidation opportunities available in the market,t and buying capacities are concentrated in select CDMOs with sufficient financial resources. The merger and acquisition strategies of CDMOsares focused on augmenting technical capabilities and expanding their geographic footprint. Medium-sized CDMOs are active in the market to compete in terms of offering niche services.

Periods of History and Forecast

This research report presents the analysis of each considered segment for the period from 2016 to 2026, using 2017 as the base year for estimations. Compounded annual growth rates (CAGRs) for each segment are calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

This report includes qualitative and quantitative information on the pharmaceutical CDMO services industry, mapped for the period from 2016 to 2026. Qualitative information about this market is presented in the form of an analysis of each market segment, including drivers, challenges, opportunities, and the competitive landscape. The global pharmaceutical CDMO services market is segmented in terms of services, products, and geography.

This report incorporates sets of qualitative and quantitative information respective to the global pharmaceutical CDMO services market. Drivers and challenges pertaining to this market are incorporated into this study to analyze the currently prevalent market dynamics, while market opportunities are also enumerated to give insights pertaining to the pharmaceutical CDMO services market. The market size and forecast of each segment in terms of services, products, and geographical demarcation are provided in this report for the period from 2018 to 2026.

This report concludes with a company profiles section that gives a brief overview of key market players based on their business description, financial overview, product portfolio, and key developments. The major market players profiled in this study are Recipharm AB, AMRI Global, Patheon N.V., Aenova Group, Catalent, Inc., Amatsigroup, WuXi AppTec Group, Strides Pharma Science Limited, Piramal Pharma Solutions, Siegfried Ltd., Fareva Group, and FAMAR Health Care Services.

Key questions are answered in this report.

• What is the size of the global pharmaceutical CDMO services market in 2018, and what value will the market attain through 2026?
• At what growth rates will the key segments progress through the forecast period from 2018 to 2026?
• What is the market share of the drug substance development and manufacturing services segment, and will lab-based services challenge the market’s dominance?
• To what extent have innovator drugs and CDMO services proliferated in the global market?
• Which are the key strategies adopted by the market players to become the leading shareholders in the industry?
• At what CAGR will the generic drugs and CDMO services segment advance during the forecast period?
• What distinguishes the European market from the rest of the world?

Chapter 1. Preface
1.1. Report Description
1.1.1. Study Purpose
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Market Segmentation
1.3. Research Scope
1.4. Research Methodology
1.4.1. Phase I – Secondary Research
1.4.2. Phase II – Primary Research
1.4.3. Phase III – Expert Panel Review
1.4.4. Assumptions
1.5. Market Segmentation

Chapter 2. Executive Summary
2.1. Global Pharmaceutical CDMO Services Market Portraiture
2.2. Global Pharmaceutical CDMO Services Market, by Service Type, 2017 (US$ Bn)
2.3. Global Pharmaceutical CDMO Services Market, by Product Type, 2017 (US$ Bn)
2.4. Global Pharmaceutical CDMO Services Market, by Geography, 2017 (US$ Bn)

Chapter 3. Global Pharmaceutical CDMO Services Market: Dynamics and Future Outlook
3.1. Overview
3.2. Drivers
3.3. Challenges
3.4. Opportunities
3.5. Attractive Investment Proposition, by Geography, 2017
3.6. Competitive Analysis: Global Pharmaceutical CDMO Services Market, by Key Players, 2017

Chapter 4. Global Pharmaceutical CDMO Services Market, by Service Type, 2016-2026 (US$ Bn)
4.1. Overview
4.2. Drug Substance Development and Manufacturing
4.3. Specialized Services
4.4. Lab-based Services

Chapter 5. Global Pharmaceutical CDMO Services Market, by Product Type, 2016-2026 (US$ Bn)
5.1. Overview
5.2. Innovator Drugs
5.3. Generic Drugs
5.4. Label Change
5.5. Others

Chapter 6. Global Pharmaceutical CDMO Services Market, by Geography, 2016 – 2026 (US$ Bn)
6.1. Overview
6.2. North America Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
6.2.1. North America Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
6.2.2. North America Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
6.2.3. North America Pharmaceutical CDMO Services Market, by Country, 2016 – 2026 (US$ Bn)
6.2.3.1. U.S.
6.2.3.2. Canada
6.3. Europe Pharmaceutical CDMO Services Market, 2016 – 2026 (US$ Bn)
6.3.1. Europe Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
6.3.2. Europe Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
6.3.3. Europe Pharmaceutical CDMO Services Market, by Country/Region, 2016 – 2026 (US$ Bn)
6.3.3.1. U.K.
6.3.3.2. Germany
6.3.3.3. Rest of Europe
6.4. Asia Pacific Pharmaceutical CDMO Services Market, 2016 – 2026 (US$ Bn)
6.4.1. Asia Pacific Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
6.4.2. Asia Pacific Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
6.4.3. Asia Pacific Pharmaceutical CDMO Services Market, by Country/Region, 2016 – 2026 (US$ Bn)
6.4.3.1. China
6.4.3.2. Japan
6.4.3.3. Rest of Asia Pacific
6.5. Latin America Pharmaceutical CDMO Services Market, 2016 – 2026 (US$ Bn)
6.5.1. Latin America Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
6.5.2. Latin America Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
6.5.3. Latin America Pharmaceutical CDMO Services Market, by Country/Region, 2016 – 2026 (US$ Bn)
6.5.3.1. Brazil
6.5.3.2. Mexico
6.5.3.3. Rest of Latin America
6.6. Middle East & Africa Pharmaceutical CDMO Services Market, 2016 – 2026 (US$ Bn)
6.6.1. Middle East & Africa Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
6.6.2. Middle East & Africa Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
6.6.3. Middle East & Africa Pharmaceutical CDMO Services Market, by Region, 2016 – 2026 (US$ Bn)
6.6.3.1. GCC
6.6.3.2. Rest of Middle East & Africa

Chapter 7. Company Profiles
7.1. Recipharm AB
7.1.1. Business Description
7.1.2. Financial Information (Subject to Data Availability)
7.1.3. Product Portfolio
7.1.4. Key Developments
7.2. AMRI Global
7.3. Patheon N.V.
7.4. Aenova Group
7.5. Catalent, Inc.
7.6. Amatsigroup
7.7. WuXi AppTec Group
7.8. Strides Pharma Science Limited(Strides)
7.9. Piramal Pharma Solutions
7.10. Siegfried Ltd
7.11. Fareva Group
7.12. FAMAR Health Care Services

List of Figures

FIG 1. Pharmaceutical CDMO Services Market: Research Methodology
FIG 2. Pharmaceutical CDMO Services: Market Segmentation
FIG 3. Global Pharmaceutical CDMO Services Market, by Service Type, 2017 (US$ Bn)
FIG 4. Global Pharmaceutical CDMO Services Market, by Product Type, 2017 (US$ Bn)
FIG 5. Global Pharmaceutical CDMO Services Market, by Geography, 2017 (US$ Bn)
FIG 6. Attractive Investment Proposition, by Geography, 2017
FIG 7. Competitive Analysis: Global Pharmaceutical CDMO Services Market, by Key Players, 2017
FIG 8. Global Drug Substance Development and Manufacturing Services Market, 2016-2026(US$ Bn)
FIG 9. Global CDMO Specialized Services Market, 2016-2026 (US$ Bn)
FIG 10. Global CDMO Lab-based Services Market, 2016-2026 (US$ Bn)
FIG 11. Global Pharmaceutical CDMO Services Market for Innovator Drugs, 2016-2026 (US$ Bn)
FIG 12. Global Pharmaceutical CDMO Services Market Generic Drugs, 2016-2026 (US$ Bn)
FIG 13. Global Pharmaceutical CDMO Services Market for Label Change, 2016-2026 (US$ Bn)
FIG 14. Global Pharmaceutical CDMO Services Market for Other Products, 2016-2026 (US$ Bn)
FIG 15. U.S. Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 16. Canada Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 17. U.K. Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 18. Germany Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 19. Rest of Europe Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 20. China Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 21. Japan Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 22. Rest of Asia Pacific Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 23. Brazil Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 24. Mexico Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 25. Rest of Latin America Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 26. GCC Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)
FIG 27. Rest of Middle East and Africa Pharmaceutical CDMO Services Market, 2016-2026 (US$ Bn)

List of Tables

TABLE 1 Global Pharmaceutical CDMO Services Market Portraiture
TABLE 2 Global Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
TABLE 3 Global Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
TABLE 4 Global Pharmaceutical CDMO Services Market, by Geography, 2016 – 2026 (US$ Bn)
TABLE 5 North America Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
TABLE 6 North America Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
TABLE 7 North America Pharmaceutical CDMO Services Market, by Country, 2016 – 2026 (US$ Bn)
TABLE 8 Europe Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
TABLE 9 Europe Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
TABLE 10 Europe Pharmaceutical CDMO Services Market, by Country/Region, 2016 – 2026 (US$ Bn)
TABLE 11 Asia Pacific Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
TABLE 12 Asia Pacific Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
TABLE 13 Asia Pacific Pharmaceutical CDMO Services Market, by Country/Region, 2016 – 2026 (US$ Bn)
TABLE 14 Latin America Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
TABLE 15 Latin America Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
TABLE 16 Latin America Pharmaceutical CDMO Services Market, by Country/Region, 2016 – 2026 (US$ Bn)
TABLE 17 Middle East and Africa Pharmaceutical CDMO Services Market, by Service Type, 2016 – 2026 (US$ Bn)
TABLE 18 Middle East and Africa Pharmaceutical CDMO Services Market, by Product Type, 2016 – 2026 (US$ Bn)
TABLE 19 Middle East and Africa Pharmaceutical CDMO Services Market, by Region, 2016 – 2026 (US$ Bn)
TABLE 20 Recipharm AB: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 21 AMRI Global: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 22 Patheon N.V.: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 23 Aenova Group: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 24 Catalent, Inc.: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 25 Amatsigroup: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 26 WuXi AppTec Group: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 27 Strides Pharma Science Limited(Strides): Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 28 Piramal Pharma Solutions: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 29 Siegfried Ltd: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 30 Fareva Group: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)
TABLE 31 FAMAR Health Care Services: Company Snapshot (Business Description; Financial Information; Product Portfolio; Key Developments)