The latest market report published by Credence Research, Inc. “Pharmaceutical CDMO Services Market – Growth, Future Prospects, Competitive Analysis, 2018 – 2026,” the global Pharmaceutical CDMO Services Market was estimated at US$ 65.6 Bn in 2017 expanding at a CAGR of 6.5% from 2018 to 2026, to reach US$ 116.2 Bn by 2026.
Over the recent years, pharmaceutical companies are facing a pressing need of consolidating their supplier base while containing development and manufacturing costs. The global pharmaceutical market is rapidly changing while posing new challenges for pharmaceutical companies, where growing pricing pressure being the most prominent issue. However, changing macro-environment due to aging population, emerging middle-income population groups and fast progressing R&D innovation have driven pharmaceutical companies to rework on their supply chains. Pharmaceutical companies are rethinking whether to invest in infrastructure expansion, or explore core competencies. This has led to evolution of contract development and manufacturing organization partners.
The global pharmaceutical CDMO services market is experiencing greater growth than the overall pharmaceuticals market. The market growth is driven by prime factors such as improved resource quality, increasing trend of outsourcing by pharma companies for cost optimization and increase in the use of pharmaceuticals, and global growth of generic pharmaceutical companies. Additional drivers of this market include need of large pharmaceutical companies to counterbalance their manufacturing capacity constraints and procure access to technologies that are not available with them. Increasing integration of pharmaceutical companies and CDMOs is also witnessed in the market with respect to collaborative and strategic partnerships to offset supply chain issues.
For building optimum strategic partnerships between pharma companies and CDMOs a prime factor considered by manufacturers is the precise forecasting of future manufacturing volume. At present this poses a major challenge due to volatile competition and reimbursement scenario. Therefore, pharma companies are increasingly seeking for flexible business model which will efficiently adjust with the changes in real-time demand. This has resulted in CDMOs adopting condominium business approach. CDMOs are offering specialized platforms to pharmaceutical companies by providing custom facilities within the CDMO infrastructure for new products with unique characteristics. Engaging with CDMOs provides design services to the pharma companies while entering into synergy with equipment suppliers, ensuring valid manufacturing processes and efficient operation management. Adoption of such business models ensure success in the forms such as efficient management of scalability, speed to market, better product quality, reduced operating cost and smaller operation footprint.
Browse the full report at https://www.credenceresearch.com/report/pharmaceutical-cdmo-services-market
Fort the purpose of this study, the global CDMO services market is segmented in terms of service and product types. Among the service types, drug substance development and manufacturing leads the global market in terms of revenue. Whereas innovator drugs segment is the most sought after area where CDMO services are demanded. Additionally, North America is the largest regional market for CDMO services and is primarily characterized by increasing pricing pressure from payers and governments, and widespread domicile of CDMO companies in the region. Increasing outsourcing to Asia Pacific for efficient management of supply chain and cost reduction is a key factor rendering fastest market growth ot this region.
Key Market Movements:
- Significant growth in demand for generic drugs
- Increasing middle-income population groups with growing demand for super generic drugs
- Large preference for outsourcing development and manufacturing of innovator drugs for cost mitigation
- Spreading market consolidation strategies undertaken by large CDMOs to increase their specialization while offering one-stop-shop services to customers