Growth Opportunities in the Biologics Contract Development and Manufacturing Organization Sector

Value Chain Expansion to Support Next generation Biologics Drives Future Growth Potential

This research service provides an overview of the global biologics contract development and manufacturing organization (bio-CDMO) market and a 6-year market revenue forecast (2023 to 2028). The geographic scope covers three key regions, namely North America (NA); Europe; and Asia-Pacific (APAC). The report offers a detailed segment analysis of the bio-CDMO market, including emerging business models such as reserved capacity and contract research development and manufacturing organization (CRDMO) services that are set to dominate the traditional fee-for-service manufacturing services space. The market segments cover drug type (drug substance and drug products) and cell expression type (microbial, mammalian, and other modalities). The other modalities segment includes cell-free expression systems, such as nucleic acid-based products and insect- and plant-based expression systems. For the purpose of this study, the bio-CDMO market forecast includes services encompassing drug development and manufacturing processes, such as product development (R&D) services, analytical support, and manufacturing and packaging services, into one integrated process (from drug development through manufacturing).

The industry shift toward biologics is boosting product pipelines and adoption, leading to more demand for biologics manufacturing capability and capacity expansion. Also, emerging biopharma companies hold two-thirds of the molecules in the R&D pipeline but have limited muscle to develop and commercialize these products. Bio-CDMOs can provide the agility and flexibility required for next-generation modalities such as CGT as they can use their modular facilities for multiple products and clients, which is a challenge for biopharma companies that build capabilities in-house. Big pharma is, therefore, increasingly choosing to outsource complex development and manufacturing processes and de-risking their supply chain instead of building more in-house manufacturing capacity. The transition of CDMOs to CRDMOs is leading them to offer end-to-end services. This positions competitors to partner with biopharmaceutical companies for their research, development, and manufacturing needs-from discovery to commercialization. While the COVID-19 pandemic has led to drug supply shortages, the pharmaceutical industry in general is moving toward right shoring, which involves keeping parts of the supply chain and processes in strategic locations to deliver the desired combination of cost and efficiency. CDMOs are playing a critical role in achieving supply chain resiliency.