February 21, 2024

Healthcare CMO Market Connected with Increasing Demand for Reducing Overall Costs Outlined in Heading

The global Healthcare CMO Market is estimated to be valued at US$ 326.8 million in 2022 and is expected to exhibit a CAGR of 16.1 % over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.

Healthcare CMO Market Overview:

Contract manufacturing organizations (CMOs) provide manufacturing services to the pharmaceutical and biotech industry. They help pharmaceutical companies reduce overall costs by outsourcing drug production activities. CMOs also provide expertise in commercial-scale manufacturing of small molecule drugs, biologics, cell and gene therapies. They manage production activities from product development to finished dosage formulation. This enables pharmaceutical companies to focus on drug discovery and clinical research.

Healthcare CMO Market key trends:

One of the major trends in the healthcare CMO market is the rising outsourcing of biologics manufacturing. Due to high capital investment needs for setting up biologics manufacturing facilities, pharmaceutical companies are increasingly relying on CMOs for biologics production. CMOs provide access to advanced technologies like single-use bioreactors for cell culture processes. They help biotech startups and small pharmaceutical firms launch biologics products without investing heavily in manufacturing infrastructure. In addition, CMOs with extensive expertise in cell and gene therapy manufacturing are benefiting from the growing clinical pipeline of these novel therapies. Their specialized capabilities enable faster production of cell and gene therapy products.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the healthcare CMO market is moderate as it requires high capital investment and expertise due to strict regulatory environment.

Bargaining power of buyers: The bargaining power of buyers is moderate as the presence of numerous pharmaceutical companies allows buyers to negotiate on pricing and quality services.

Bargaining power of suppliers: The bargaining power of suppliers is low as there are large number of suppliers and raw material providers involved in healthcare CMO market.

Threat of new substitutes: The threat of new substitutes is low as there are limited alternatives to contract manufacturing services in pharmaceutical industry.

Competitive rivalry: Competitive rivalry in the market is high due to presence of numerous global and regional players offering similar services.

Key Takeaways

The global Healthcare CMO Market size is expected to witness high growth, exhibiting CAGR of 16.1% over the forecast period 2021-2028, due to increasing demand for generic drugs and biosimilars.

The US is expected to dominate the global healthcare CMO market throughout the forecast period, owing to well-established pharmaceutical industry, availability of advanced facilities and presence of major market players. Asia Pacific region is anticipated to be the fastest growing market due to rising pharmaceutical manufacturing outsourcing to China and India.

Key players operating in the healthcare CMO market are Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it