Market Trends of Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Industry
Increasing Investment in R&D Drives the Market
- The United States is one of the largest pharmaceutical markets, accounting for about half of the R&D spending in the pharmaceutical and biotech markets. CMOs play a vital role in this market, investing in new facilities and technology to serve various outsourcing entities. Moreover, companies are not only reaping the benefits of their Asian footprint through in-house investments but are also looking for research-based partnerships to acquire high-end sourcing expertise, build drug discovery, and invest.
- For instance, in January 2024, EXO Biologics SA, a Belgian biotech company committed to developing biopharmaceuticals using exosomes to treat rare diseases with high unmet medical needs, launched ExoXpert, a contract development and manufacturing organization (CDMO) specializing in exosomes. ExoXpert offers an MSC-based exosome manufacturing platform used in European clinical trials and is a wholly-owned subsidiary of EXO Biologics.
- Proper infrastructure for the safe handling and containment of high-potency drugs, especially the need for appropriate analytical skills for high-potency drugs, and adequate project management (including good launch, execution, and completion) are needed to stand out in the market for research and development.
- As pharmaceutical companies shift their target toward scientific research and pharmaceutical marketing, CDMOs can further establish themselves as vital partners and build strategic, integrated partnerships with their customers.
- Given the rising number of complex and high-potency compounds, CDMOs can stand out through advanced technology and specialized expertise. In addition, new operational approaches such as continuous manufacturing are expected to allow CDMOs to improve the efficiency of their manufacturing processes, reducing costs and wastage.
- Furthermore, the market is witnessing growth in clinical trials, driving the demand. For instance, according to ClinicalTrials.gov, the total number of registered clinical studies was 437.513 million in 2022, reaching 477.237 million in 2023.
- CDMOs are anticipated to discover new opportunities with an increasing number of small and medium-sized pharma firms. Such small and medium-sized pharma companies are mainly accountable for the growing share of new drug approvals and often have no manufacturing capacity.
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Asia-Pacific is Expected to be the Fastest-growing Region for the CRO Segment
- Asia-Pacific is anticipated to witness the highest growth in the CRO market over the forecast period due to the region's low cost compared to the United States and other developed economies. In addition, the growing incidences of chronic and lifestyle diseases, such as diabetes and heart disease, along with ease of patient recruitment and availability of expertise for clinical trials, are major driving factors boosting the growth in the region.
- For instance, China has over 180 million elderly citizens suffering from chronic diseases, of whom 75% have more than one, according to the National Health Commission (NHC). By 2030, cardiovascular disease are projected to cost the Chinese government USD 1,044 billion. Similar trends for the high prevalence of diabetes are present around Asia-Pacific, including China, South Korea, and Australia.
- With the increasing privatization of clinical trials, there has been an increase in research process outsourcing in developing countries such as China and India. For example, large pharmaceutical companies are increasingly outsourcing research services such as clinical data management, pharmacovigilance, biostatistics, etc.
- There are numerous reasons why certain regions attract organizations conducting clinical trials. Some include cost, patient recruitment, required testing, and shorter timelines. The overall number of clinical trials is increasing in China, India, and Japan, making Asia-Pacific one of the potential regions.
- India provides preclinical services at lower costs than developed nations. Initiatives taken by the Indian government to expand the CRO potential have offered an attractive market opportunity in recent years.
- The availability of scientific expertise in India may boost business growth over the next few years. Clinical trials in the country are about 50% less costly than in the United States. India is one of the largest drug producers and has the most FDA-approved manufacturing plants outside the United States, giving it a competitive edge over China.
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Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market Report Snapshots
- Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market Size
- Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market Share
- Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Market Trends
- Pharmaceutical Contract Development and Manufacturing Organization (CDMO) Companies
