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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 which was valued at USD 160.12 billion in 2020 is expected to reach 236.61 billion dollars by 2026 at a CAGR of 6.5 percent. The CMO/CDMO service sector is particularly positioned to handle the issues that drug developers are facing in the midst of the COVID 19 pandemic. The pandemic has had a major influence on many sectors of the pharmaceutical and biopharma industries, including supplies, clinical trials, and production, as well as supply chain logistics. 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. Across numerous levels in the industry, there was also underutilized efficiency, due to the several numbers of typical workforces who were unable to return to work. Furthermore, the US Food and Drug Administration announced short-term scarcity in February 2020 owing to API manufacturing delays (FDA).
The rising demand for robust procedures and manufacturing technologies, which have proven their efficiency in meeting regulatory standards, is the largest factor that is advancing the growth of CMOs in the pharmaceutical industry in the Asia-Pacific region. CMOs are being merged as a means of increasing profitability in a competitive market. Large CMOs may be able to increase their geographical footprint and enter specialized sectors as a result of this consolidation, while smaller CMOs may benefit from the technological knowledge and resources of these larger CMOs. For example, South Korean biosimilar manufacturer Celltrion announced in January 2020 intends to invest 514 million dollars over five years in its new Wuhan factory, which would have a capacity of 120,000 litres, making it China's largest biologics facility.