Discover the evolving landscape of contract manufacturing, focusing on CDMOs/CMOs and their strategic impact on the pharmaceutical industry.
The landscape for Contract Development and Manufacturing Organizations (CDMOs/CMOs) is evolving rapidly. This article explores the key trends, market fundamentals, and external factors shaping the sector’s trajectory in the year ahead. From growth projections to industry trends and inflationary pressures, we delve into the dynamics influencing CDMOs/CMOs and the broader pharmaceutical manufacturing ecosystem.
Crunching the Numbers: Growth Projections
An October 2023 analysis from Evaluate indicates a promising trajectory for the overall CDMO market, projecting an annualized growth rate of 7.29% through 2028. Moreover, the biologics CDMO sector is expected to emerge as a significant contributor to this growth, with projections indicating an increase from $15.1 billion in 2023 to $27.0 billion by the end of 2028, representing a compound annual growth rate (CAGR) of 12.3% during the forecast period.
The Rise of Cell- and Gene-Therapy Segment
A pivotal driver of growth in the biologics CDMO market is the burgeoning cell- and gene-therapy segment, poised to expand at an annualized rate exceeding 20% between 2023 and 2028. With the global cell- and gene-therapy market anticipated to reach $80 billion by 2029, oncology remains at the forefront, accounting for 44% of the market share by 2029.
Industry Product Trends: Focus on Specialty Medicines
Specialty medicines continue to gain prominence, representing a substantial share of global spending. Defined by the IQVIA Institute for Human Data Science, specialty medicines encompass treatments for chronic, complex, or rare diseases. Projections indicate that specialty medicines will constitute approximately 43% of global spending by 2027, underscoring the sustained growth in this segment.
Inflationary Pressures and Macroeconomic Trends
While inflationary pressures eased in 2023, macroeconomic factors continue to influence the operating landscape for CDMOs. Despite a modest global growth outlook, the impact of monetary policy tightening and weak trade persists. Projections by the Organization for Economic Cooperation and Development (OECD) anticipate a gradual decline in consumer price inflation across OECD countries, signaling a shift toward central bank targets by 2025.
Capital Flow into Emerging Pharma
A pivotal determinant for CDMOs in 2024 is the flow of capital into the bio/pharma industry, particularly toward Emerging Pharma companies. While venture capital investments in biotechnology saw a decline in 2023, a shift toward later-stage drug companies is evident. Monitoring the capital inflow dynamics will provide crucial insights into the investment landscape and potential opportunities for CDMOs.
As CDMOs/CMOs navigate the evolving landscape in 2024, strategic agility and a proactive approach to market dynamics will be paramount in capitalizing on emerging trends and driving sustainable growth.
Source: The CDMO/CMO Report: The Year Ahead in Bio/Pharma Outsourcing
Contract Manufacturing
Contract Manufacturing
Comments are closed.
