Contract production of pharmaceutical ingredients by 2028 may reach $ 136 billion

Contract production of pharmaceutical ingredients by 2028 may reach $ 136 billion

The global active pharmaceutical ingredients CDMO market size is expected to reach USD 136.1 billion by 2028. The market is expected to expand at a CAGR of 6.7% from 2021 to 2028.

The increasing pharmaceutical R&D investment, patent expirations and rise in demand for generic drugs and biologic innovation are the factors driving the market.

The growth of small molecules, rising Active Pharmaceutical Ingredient (API) complexity and the need to reduce costs are factors contributing to the rapid expansion of outsourcing services in the pharmaceutical sector. Only a few companies have achieved global reach and scale in the Contract Development and Manufacturing Organization (CDMO) sector, which is still fragmented. Besides, many companies are providing one-stop-shop solutions as an integrated source of APIs and formulations.

However, due to the COVID-19 pandemic, governments worldwide have opted to boycott APIs made in China. Due to government-imposed lockdown limitations in China, 44 firms were declared non-operational during the pandemic. As a consequence, various countries have launched programs to develop their own APIs and countries across the EU have re-evaluated their healthcare models in order to combat the virus and ensure a steady supply of APIs.

COVID-19 has placed unprecedented expectations on API makers, as evidenced by the substantial increase in demand for medications required to manage critically ill patients on mechanical ventilation. As a result, the sudden need to rapidly increase production has emphasized the need for adaptability for API CDMOs in maintaining drug supply, with some companies proving better able to withstand the pressures of quick scale up than others.

Active Pharmaceutical Ingredients CDMO Market Report Highlights

  • The traditional active pharmaceutical ingredient dominated the market and accounted for the largest revenue share of 40.5% in 2020.
  • The innovative drugs segment held 74.6% of the revenue share in 2020. This is largely attributed due to increasing FDA approvals for new molecular entities and the increased focus on R&D by innovator API companies.
  • The oncology segment dominated the market and accounted for the largest revenue share of 35.1% in 2020. This is due to the increasing demand for highly active APIs for cancer therapy.
  • In Asia Pacific, the market is expected to register the fastest growth rate of 8.9% over the forecast period. Due to the extreme rising number of pharmaceutical companies and contract manufacturing organizations in developing countries like India and ChinaAsia Pacific is likely to overtake Europe and North America in the near future.

www.prnewswire.com

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