CDMO outsourcing market to reach $36.51bn by 2023
The global pharma contract development and manufacturing organisation (CDMO) outsourcing market is predicted to grow.
A new report has predicted that the global contract development and manufacturing organisation (CDMO) outsourcing market will to reach $36.51 billion by 2023 and will progress at a CAGR of almost 8 percent during the forecast period of 2019-2023.
…CDMOs provide support through all stages of drug formulation and development”
The report by Technavio continues that this is driven by the growth of the pharmaceutical industry and the increasing demand for “one-stop-shop” CDMOs.
“Poor lifestyles have increased the number of diseases such as diabetes and other cardiac diseases,” said a senior analyst at Technavio. “The high demand for drugs to treat these diseases is driving many pharma and biotech companies to outsource some of their processes to CDMOs.”
Many pharma and biotech companies have had to expand their manufacturing capabilities due to the high demand for pharmaceutical products but several small companies cannot afford to expand their manufacturing facilities due to financial constraints. This is why, the report states, they prefer to outsource some of their processes to CDMOs.
Furthermore, improving technical capabilities and expertise of CDMOs are encouraging many enterprises to enter into the manufacturing and development of large molecules in biologics. This is helping enterprises manufacture a large number of drugs in a short period, also driving the expansion of the market.
Many pharma and biotech companies are also focussing on engaging with one-stop-shop CDMOs to gain a competitive edge in the global market, the report continues. Such CDMOs provide support through all stages of drug formulation and development and offer secondary packaging services.
They also assist enterprises in developing strategies to optimise capital cost during development, test drug products to meet regulatory requirements and preserve scarce active pharmaceutical ingredients (APIs). The growing demand for one-stop-shop CDMOs is expected to fuel the growth of the global CDMO outsourcing market during the forecast period, the report says.