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Reports show the global pharmaceutical CDMO market to reach 236.61 billion dollars by 2026 at a CAGR of 6.5 percent.
FREMONT, CA: The global pharmaceutical CDMO market is expected to reach 236.61 billion dollars by 2026 at a CAGR of 6.5 percent which was valued at USD 160.12 billion in 2020. To address the challenges that the drug developers are facing amidst the COVID'19 pandemic, the CMO/CDMO service sector has been uniquely placed. Several aspects of the pharma and biopharma industry, from drug development, supplies, clinical trials, and manufacturing to supply chain logistics have been impacted by the pandemic. Owing to the stockpiles of pharmaceuticals, APIs globally, the drug shortage due to COVID'19 which are limited will remain only for a short period of time.
Supply from Chinese manufacturing facilities was also significantly reduced after the lockdowns were imposed. There was also underutilized efficiency across numerous levels in the industry due to the several numbers of typical workforces who were unable to return to work. Furthermore, in February 2020, due to API manufacturing delays, short-term scarcities were announced by the US Food and Drug Administration (FDA).
The growing need for robust processes and production technologies, which have proven highly effective in meeting regulatory requirements, is the biggest factor that is boosting the growth of CMOs in the pharmaceutical industry in the Asia-Pacific region. As a mechanism of improving profitability in the competitive market CMOs are being consolidated. This consolidation can render the large CMOs to expand their geographical presence and penetrate into niche markets, while the small CMOs can utilize the technical expertise and resources of larger CMOs. For example, South Korea's Celltrion, a biosimilar maker, announced in January 2020 its plans to invest 514 million dollars over five years for its new plant in Wuhan, which holds a capacity of 120,000 liters making it China's biggest biologics facility.
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