Major players in the pharmaceutical contract development and manufacturing organization (CMO) market are Recipharm AB, Pfizer Inc. , Boehringer Ingelheim International GmbH. , Aenova Group, Famar, Jubilant Life Sciences Limited, Catalent Pharma Solutions, Chemicals Limited, Dishman Pharmaceuticals and HAUPT Pharma AG.
New York, Sept. 28, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Pharmaceutical Contract Development And Manufacturing Organization (CMO) Global Market Report 2021: COVID-19 Growth And Change To 2030" - https://www.reportlinker.com/p06151537/?utm_source=GNW
The global pharmaceutical contract development and manufacturing organization (CMO) market is expected to grow from $97.38 billion in 2020 to $103.24 billion in 2021 at a compound annual growth rate (CAGR) of 6%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $149.44 billion in 2025 at a CAGR of 9.7%.
The pharmaceutical contract development and manufacturing market consists of sales of pharmaceutical contract development and manufacturing products and related services.Some pharmaceutical companies outsource the manufacturing of products on contracts to focus on the R&D, marketing and branding of their products.
The pharmaceutical contract development and manufacturing market consists of manufacturing firms who manufacture drugs and other pharmaceutical products for other pharmaceutical companies on contractual basis.
The pharmaceutical contract development and manufacturing organization (CMO) market covered in this report is segmented by type into active pharmaceutical ingredient (API) manufacturing, finished dosage formulation (FDF) development and manufacturing, secondary packaging. It is also segmented by research phase into preclinical, phase I, phase II, phase III, phase IV.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The pharmaceutical contract development and manufacturing market is restricted by the poor-capacity utilization of manufacturing facilities.The capacity utilization is calculated considering the full potential capacity of the production plant.
The poor-capacity utilization of the production plant is caused due to the inefficiency of different sub-processes in the production line which results in low production.The low production output results in low revenue generation for the production unit, affecting the overall pharmaceutical contract development and manufacturing market.
For instance, according to a 2019 article by the Trade Promotion Council of India (TPCI) most of the pharmaceutical production units in India run at 30-40% of their capacity. Therefore, the under usage of capacity of production plant negatively affects the pharmaceutical contract development and manufacturing market.
In 2019, Permira Funds, a European equity firm acquired Cambrex Corporation for $2.4 billion. The acquisition is aimed to strengthen and expand the products and services offered by Cambrex Corporation towards the manufacturing of drugs. The Cambrex Corporation is a USA based contract development and manufacturing (CDMO) firm involved with the products and services related to small molecule active pharmaceutical ingredients.
The growth of the pharmaceutical contract development and manufacturing market is driven by the increase in the demand for medicines across the globe.The high prevalence of diseases and the need for a longer lifespan increased the demand for medicines pushing the pharmaceutical companies to increase the production of existing drugs and raise the investment in their R&D to promote the development of new drugs.
This impels the pharmaceutical companies to collaborate with contract manufacturing organizations (CMOs) as a way to lower operational costs, thus, increasing the demand in pharmaceutical contract development and manufacturing market. According to Alkermes plc, a biopharmaceutical company indicates that pharmaceutical contract manufacturing will emerge as a strategic option for many companies ranging from very large to smaller specialty pharma entities and this mostly will happen because the pharmaceuticals companies are looking for cost cutting.
The companies in the pharmaceutical contract development and manufacturing market are investing towards acquiring and forming alliances with other companies in the market.The pharmaceutical contract development and manufacturing companies are following the trend of merger and acquisition in order to expand their global market reach to meet the client needs, to increase their production capabilities while maintaining cost efficiencies and to get access to latest technology and new services.
The high levels of merger and acquisition activities are resulting in consolidation of the contract service providers. For instance, according to a PricewaterhouseCoopers report, the largest M&A activity in the contract development and manufacturing organization sector in a span of 2017 to 2019 was the deal between Thermo Fisher Scientific and Patheon, where the former acquired the latter for $7.2 billion. Also other important acquisitions were Thermo Fisher’s acquisition of Brammer Bio for $1.7 billion in 2019 and Carlyle’s acquisition of AMRI in 2017 for $1.5 billion.
The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
Read the full report: https://www.reportlinker.com/p06151537/?utm_source=GNW
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