Biologics Contract Development and Manufacturing Organization (CDMO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Biologics Contract Development and Manufacturing Organization (CDMO) Market is Segmented by Type (Mammalian and Non-Mammalian (Microbial)), Product Type (Biologics (Monoclonal, Recombinant Proteins, Antisense and Molecular Therapy, Vaccines, and Other Biologics) and Biosimilars), and Geography.

Market Snapshot

Biologics CDMO Market Overview
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 11.51 %

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Market Overview

The global biologics CDMO market (henceforth referred to as the market studied) was valued at USD 11.27 billion in 2021, and it is expected to reach USD 21.90 billion by 2027, registering a CAGR of 11.51% during 2022-2027 (henceforth referred to as the forecast period).

· The global pharmaceutical industry is growing exponentially, driven by global economic growth, a growing and aging population, and new product launches. Even though small molecules continue to command a prominent share of the market, large molecules, such as biologics, biosimilars, and cell and gene therapies, are expected to witness the fastest growth over the forecast period.

· Even though volumes in large molecules tend to be smaller, the segment is growing faster. Absolute growth in the large molecules market, including both originator biologics, biosimilars, and cell and gene therapies, is expected to propel the market to USD 133 billion by 2023. The market size for originator biologics is expected to reach USD 371 billion by 2023, according to Results Healthcare.

· Cancer therapies are among the primary drivers for a large portion of the growth in the biologics market. Even with the faster growth forecast, small molecules outweigh biologics in terms of drug approvals. For instance, the FDA’s Center for Drug Evaluation and Research (CDER) approved 50 new drugs and biological products in 2021. Of the 50 approved new drugs and biological products, 33 were small molecule drugs, and 17 were monoclonal antibodies and other big molecule drugs. The number of biologic approvals has been increasing steadily over the past few years.

· Companies need to invest additional amounts in complying with regulations imposed on the manufacturers. Instead, companies are willing to spend on R&D activities, which benefit the company overall. Hence, the highly regulated manufacturing processes, with complicated technology transfer and IP security concerns, are impeding the anticipated growth and adoption of the market in different regions.

· The COVID-19 pandemic indicated the potential of vaccine manufacturing and outsourcing as a sustainable revenue stream for companies operating in the market studied. Following the COVID-19 vaccine, the introduction of boosters is expected to create a favorable landscape for growth for CDMO vendors. For instance, Catalent has worked on nearly 100 different compounds to investigate its potential to develop COVID-19 vaccines and therapies for more than 60 customers.

Scope of the Report

A contract development and manufacturing organization (CDMO) is an organization that aids the pharmaceutical industry and equips its clients with comprehensive services ranging from drug development to manufacturing. CDMOs provide essential services incorporating external third-party projects and offer their knowledge, development, and manufacturing capabilities.

The biologics contract development and manufacturing organization (CDMO) market is segmented by type (mammalian and non-mammalian (microbial)), product type (biologics (monoclonal, recombinant proteins, antisense and molecular therapy, vaccines, and other biologics) and biosimilars), and geography.

By Type
Mammalian
Non-mammalian (Microbial)
By Product Type
Biologics
Monoclonal (Diagnostic, Therapeutic, and Protein-based)
Recombinant Proteins
Antisense and Molecular Therapy
Vaccines
Other Biologics
Biosimilars
By Geography
North America
Europe
Asia-Pacific
Middle-East & Africa
Latin America

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Key Market Trends

CDMOs’ Access to New Technologies and Higher Speed of Execution Driving Market Growth

· Pressure on reducing the supply chain length and improving lead-time efficiency is forcing companies to take various measures to meet the demand, turning contract manufacturing into a major enabler in the supply chain to reduce the speed of execution.

· Often, contract manufacturing is followed by contract packaging for some pharmaceutical drugs. As a result, pharmaceutical companies are seeking vendors who provide both contract manufacturing and contract packaging, along with quality testing. In addition, third-party logistic providers, like DHL, are extending their service capability to include contract packaging services.

· CDMOs are gaining significant market traction through advanced technology and specialized expertise. Keeping up with the latest technology trends is particularly important for niche CDMOs specializing in one compound or dosage form.

· In a highly competitive industry, the biopharmaceutical CDMOs that are most likely to succeed are willing to adopt cutting-edge technology and invest the necessary time and capital to build differentiated capabilities. The best CDMOs will move quickly to increase capacity while remaining flexible and agile.

· With the rising prevalence of infectious diseases and increased demand for novel therapies, pharma and biotech companies requiring higher capital investments for advanced technologies are forming collaborations with CDMOs, further driving the market’s growth.

Biologics Contract Development and Manufacturing Organization (CDMO) Market

North America to Hold Highest Market Share

· North America is one of the major markets for the biologics CDMO industry, owing to the presence of two major economies, namely, the United States and Canada. The United States is home to one of the major pharmaceutical industries in the world and commands a significant share of the market revenue.

· According to a study by the IQVIA Institute for Human Data Science, global medicine spending will reach USD 1.8 trillion in 2026, including expenditure for COVID-19 vaccines. In addition, the region also holds a prominent share of the CDMO market. According to Results Healthcare, the region accounts for about 37% of the CDMO market share and is expected to witness growth in mid-single-digit percentage points over the coming years.

· The high prevalence of chronic diseases, the aging of the population, and the increased need for evidence‐based practice are factors that have bolstered the high demand for clinical trials in the United States. In recent years, a growing number of clinical trials have shifted from academic medical centers to community‐based practices to global sites in different countries.

· Moreover, CROs have a strong foothold in the region, which contributes to the growth of the market. Some of these include QVIA Holdings Inc., Pharmaceutical Product Development LLC, PRA Health Sciences Inc., and Laboratory Corporation of America Holdings.​ Companies such as Biovectra are also focusing on offering contract development and manufacturing capacity for intermediates and active pharmaceutical ingredients (APIs) at four cGMP facilities in North America. The Chinese contract development and manufacturing organization (CDMO) recently signed a 10-year lease deal for a clinical manufacturing facility in the United States, further helping the biologics CDMO market to grow in the country.

· Emergent BioSolutions also announced various CDMO deals with COVID-19 vaccine developers, including Vaxart, Novavax, J&J, and AstraZeneca. The company’s experience in commercializing anti-infectious disease vaccines, including FDA-approved vaccines BioThrax (Anthrax Vaccine Adsorbed) and Vaxchora (Cholera Vaccine, Live, Oral), and its pandemic-ready manufacturing network are major factors in winning these deals for the COVID-19 vaccine. The company’s Bayview drug substance facility in Baltimore, Maryland, was designed and built in partnership with the US government, specifically to respond to the pandemic. The new Center for Innovation in Advanced Development and Manufacturing (CIADM) is equipped with single-use bioreactor systems of up to 4,000 L.

Biologics Contract Development and Manufacturing Organization (CDMO) Market

Competitive Landscape

The biologics contract development and manufacturing organization (CDMO) market is highly concentrated, with close to half of the market being dominated by a few players. In 2021, major players, such as Catalent, Boehringer Ingelheim Group, Lonza Group, and Samsung Biologics, together accounted for more than 30.1% of the market studied.

· In April 2022, ChimeronBio announced that it had signed a manufacturing agreement with FUJIFILM DiosynthBiotechnologies (FDB) to advance its Oncology portfolio to include clinics. ChimeronBio opted for FUJIFILM DiosynthBiotechnologies as its partner for transferring and scaling its drug substance manufacturing process.

· In January 2022, Samsung Biologics signed an agreement with Biogen to acquire Biogen’s 50% stake in Samsung Bioepis, a joint venture formed by the two companies, for up to USD 2.3 billion. The complete buyout of Biogen’s stake by Samsung Biologics is anticipated to strengthen Samsung Bioepis’ biosimilar development capabilities and future performance in new drug development.

Recent Developments

· In April 2022, FUJIFILM Corporation announced that it had completed the acquisition of a dedicated cell therapy manufacturing facility from Atara Biotherapeutics Inc. The facility, located in Thousand Oaks, California, will be operated as part of FUJIFILM DiosynthBiotechnologies’ global network, which is a subsidiary of FUJIFILM Corporation and a world-leading contract development and manufacturing organization (CDMO).

· In March 2022, Oasmia Pharmaceutical AB and Lonza announced that the companies had signed a large-scale manufacturing agreement for the main drug intermediate to supply clinical material for its investigational drug candidate, Cantrixil.

· In December 2021, AstraZeneca and Samsung Biologics formed a strategic biopharmaceutical manufacturing partnership. The collaboration is based on an enlarged agreement signed in May 2021 after a long-term strategic agreement was signed in September 2020. Samsung Biologics manufactured AstraZeneca's COVID-19 long-acting antibody (LAAB) combination, AZD7442, and will begin manufacturing a cancer immunotherapy product next year under the agreement, worth approximately USD 380 million, up from the initial USD 331 million for the production of drug substances and drug products.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Research Framework

    2. 2.2 Secondary Research

    3. 2.3 Primary Research

    4. 2.4 Primary Research Approach and Key Respondents

    5. 2.5 Data Triangulation and Insight Generation

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Access to New Technologies and Higher Speed of Execution Realized by CDMOs

      2. 4.2.2 Need for High Capital Investments to Develop Capabilities Has Led to Firms Choosing the Outsourcing Model

      3. 4.2.3 Lack of In-house Capacity among Emerging Drug Development Companies

    3. 4.3 Market Challenges

      1. 4.3.1 Transfer Complexities and Concerns over the Breach of IP and Patents

      2. 4.3.2 Capacity Issues Related to Large-molecule Drugs

    4. 4.4 Market Opportunities (Emergence of the Concept of Biosimilars Co-development and Designer Cell Lines)

    5. 4.5 Key Considerations Involved in the Selection of Biologics CDMO Vendors

    6. 4.6 Business Model Analysis - Value Added, Flexible Capacity Risk Sharing, and In-time Manufacturing

    7. 4.7 Detailed Assessment of the Impact of COVID-19 on Biologics CDMO (The Race for the Development of a New Vaccine and Impact on the Current Capacities)

    8. 4.8 Key Trends in Biopharmaceutical Industry

    9. 4.9 Coverage on the Current Use of Biologics for Different Types of Disease Treatment - Oncology, Infectious, Cardiovascular, etc.

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Mammalian

      2. 5.1.2 Non-mammalian (Microbial)

    2. 5.2 By Product Type

      1. 5.2.1 Biologics

        1. 5.2.1.1 Monoclonal (Diagnostic, Therapeutic, and Protein-based)

        2. 5.2.1.2 Recombinant Proteins

        3. 5.2.1.3 Antisense and Molecular Therapy

        4. 5.2.1.4 Vaccines

        5. 5.2.1.5 Other Biologics

      2. 5.2.2 Biosimilars

    3. 5.3 By Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Middle-East & Africa

      5. 5.3.5 Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Boehringer Ingelheim Group

      2. 6.1.2 Wuxi Biologics

      3. 6.1.3 Samsung Biologics

      4. 6.1.4 Lonza Group

      5. 6.1.5 Fujifilm Diosynth Biotechnologies USA Inc.

      6. 6.1.6 Toyobo Co. Limited

      7. 6.1.7 Parexel International Corporation

      8. 6.1.8 Icon PLC

      9. 6.1.9 Binex Co. Limited

      10. 6.1.10 JRS Pharma

      11. 6.1.11 Rentschler Biotechnologies

      12. 6.1.12 AGC Biologics

      13. 6.1.13 Sandoz Biopharmaceuticals (Novartis AG)

      14. 6.1.14 Catalent Inc.

      15. 6.1.15 AbbVie Contract Manufacturing

    2. *List Not Exhaustive
  7. 7. VENDOR MARKET SHARE

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

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Frequently Asked Questions

The Biologics CDMO Market market is studied from 2020 - 2027.

The Biologics CDMO Market is growing at a CAGR of 11.51% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Boehringer Ingelheim Group, Wuxi Biologics, Samsung Biologics, Lonza Group, Fujifilm Diosynth Biotechnologies USA Inc. are the major companies operating in Biologics CDMO Market.

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