Pharmaceutical CDMO Market: Statistical Trends in Drug Product Development

Pharmaceutical CDMO Industry Overview

The global Pharmaceutical CDMO Market, estimated at $146.0 billion in 2023, is projected to expand at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2030. This market growth is primarily driven by increasing investments from CDMOs aimed at expanding new drug development and the rising demand for innovative therapies. Furthermore, growing pharmaceutical Research & Development investments, the demand for genetic drugs, the increasing prevalence of cancer and age-related disorders, and the rising need for advanced therapeutics are key factors fueling market growth.

Moreover, the expanding markets for biosimilars, biologics, personalized medicine, orphan drugs, companion diagnostics, and adaptive trial designs are anticipated to further boost the demand for pharmaceutical CDMO services. As pharmaceutical companies venture into new areas of drug development, the increasing need to comply with stringent regulations drives a greater demand for specialized service providers with expertise in contract development and manufacturing processes.

Detailed Segmentation:

• Application Insights

Based on application, the oncology segment led the market with the largest revenue share of 21.82% in 2023 and is expected to grow at the fastest CAGR of 8.1% during the forecast period. The market is segregated into oncology, infectious diseases, neurological disorders, cardiovascular diseases, metabolic disorders, autoimmune diseases, respiratory diseases, ophthalmology, gastrointestinal disorders, hormonal disorders, hematological disorders, and others. Oncology is further sub-segmented into small molecules and biologics. Growth in the segment can be attributed to the increasing prevalence of cancer, growing demand for innovative & effective treatments, and favorable regulatory pathways. In addition, advancements in personalized medicine & targeted therapies have revolutionized cancer treatment, offering higher efficacy and fewer adverse effects. These factors are expected to create new possibilities for collaborations between pharmaceutical companies and CDMOs for innovative products targeting diseases. Further, high R&D investment in advanced therapeutics such as monoclonal antibodies, ADC, and several other biopharmaceuticals to minimize cancer disease burden is predicted to boost segmental revenue growth.

• Product Insights

Based on product, the active pharmaceutical ingredient (API) segment led the market with the largest revenue share of 81.20% in 2023. The market is segregated into API, and drug product. The active pharmaceutical ingredient (API) is further sub-segmented into type, synthesis, drug, and manufacturing. Market growth in this segment can be attributed to diverse formulations, accelerated demand for manufacturing processes, customer preference, and global acceptance. Moreover, increasing CDMOs focusing on new drug formulations is another factor propelling segment growth.

• Work Flow Insights

Based on work-flow, The commercial segment led the market with the largest revenue share of 87.93% in 2023. The market is segregated into clinical and commercial. Some key factors contributing to the growth are strong CDMOs’ expertise in drug development and manufacturing, integration of advanced drug development and manufacturing technologies in CDMOs, increasing R&D of innovative therapies, and expanding product portfolio. Moreover, commercial CDMOs cater cost-effective services within the reduced timeline, which is expected to contribute to market growth.

• Regional Insights

The pharmaceutical CDMO market in North America is expected to grow at the fastest CAGR of 6.5% over the forecast period. This can be attributed to a growing investment in R&D of new drugs by pharmaceutical companies, which boosts the demand for pharmaceutical contract development and manufacturing services. The growth of pharmaceutical industry in the U.S. and Canada is a key factor contributing to market growth. In addition, the substantial presence of key market players and clinical trials are anticipated to drive market growth. In addition, stringent regulatory requirements, particularly in the U.S. & Canada, necessitate specialized knowledge & compliance expertise, making CDMOs an attractive option for navigating regulatory hurdles.

Gather more insights about the market drivers, restraints, and growth of the Pharmaceutical CDMO Market

Key Companies & Market Share Insights

The major players operating across the market focus on adopting in-organic strategic initiatives such as mergers, partnerships, acquisitions, etc. The prominent strategies companies adopt are service launches, mergers & acquisitions/joint ventures, mergers, partnership & agreements, expansions, and others to increase market presence & revenue and gain a competitive edge driving market growth. Hence, increasing adoption of in-organic strategic initiatives is highly anticipated to boost the market share of prominent players.

Key Pharmaceutical CDMO Companies:

The following are the leading companies in the pharmaceutical CDMO market. These companies collectively hold the largest market share and dictate industry trends.

• Lonza
• Thermo Fisher Scientific, Inc.
• Recipharm AB
• Laboratory Corporation of America Holdings (LabCorp)
• Catalent, Inc.
• WuXi AppTec, Inc.
• Samsung Biologics
• Piramal Pharma Solutions

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Recent Developments

• In April 2023, Corden Pharma established a drug product innovation center of excellence with bioavailability enhancement capabilities for Oral Solid Dosage (OSD) manufacturing drug products, especially for low bioavailability APIs in Germany. This expansion broadened the company’s operation capabilities in the significant market
• In October 2023, the Cambrex Corporation company successfully concluded a USD 38 million capacity expansion at its small molecule API manufacturing facility in High Point, North Carolina. This enhancement resulted in a twofold increase in the facility’s manufacturing capacity. The expansion included cutting-edge analytical and chemical development laboratories, two additional clinical manufacturing suites, and the establishment of a small-scale commercial manufacturing operation featuring three work centers and 2,000 L reactors