CRDMO Market – Global Outlook & Forecast 2021-2031

Contract Research, Development and Manufacturing (CRDMO) Market by Service Type [CDMO Services (API Manufacturing, Finished Product Development & Manufacturing, and Packaging) and CRO Services (Discovery, Preclinical, Clinical and Laboratory Services)] – Global Analysis & Forecast 2021-2031

Clairvoyance Research conducted an in-depth market analysis study of the Global contract research, development, and manufacturing (CRDMO) Market. According to the study, the market was valued at US$ 168 billion in 2021. The market is expected to witness a CAGR of ~7% from 2021 to 2031.

The growing trend of big pharma companies outsourcing to CRDMOs, growth of small molecules, increasing API complexities, need to optimize costs, regulatory expertise, lack of internal manufacturing capabilities among small biotech companies, the prevalence of chronic diseases, intensifying competition among pharmaceuticals & biopharmaceuticals companies, strong product pipelines, rising demand of precision medicine, industry consolidation and rising collaborations among CRO/CDMOs & pharmaceuticals companies are some of the pivotal factors propelling the growth of the Contract Research, Development, and Manufacturing (CRDMO) market. However, the capacity constraint is likely to hinder the growth of the market to a certain extent.

Advantages of Outsourcing of Manufacturing and Development Activities Catapults the Global Research, Contract Development, and Manufacturing (CRDMO) Market

The healthcare industry is undergoing a revolutionary change and is looking for new ways to boost productivity, quality & efficiency in drug development, production, and supply. The industry is evolving towards targeted drug delivery platforms, complex molecules such as biologics, and niche indications. But many companies lack in-house development, manufacturing capabilities, and expertise to drive their molecules through clinical development and to ensure accelerated speed to market. Therefore, many small- & large-scale companies are looking for strategic and integrated partners that can provide the necessary capacity and expertise. Pharmaceutical & biopharmaceutical companies are adopting the strategy of outsourcing development and manufacturing activities to focus on marketing, branding & making products viable. A CRDMO provides both CRO and CDMO service capabilities that cover the entire value chain of a drug’s life cycle from drug discovery to commercial production. CRDMO provides healthcare companies several strategic benefits such as: 

•    Fast track innovation
•    One-stop-shop with wide service offerings
•    Access to manufacturing technology
•    Increased capacity with reducing infrastructure costs
•    Access to additional expertise

Strategic Partnerships Between Healthcare Companies and CRDMOs – Boon for the Market 

The healthcare industry is witnessing more strategic partnerships between healthcare companies and CRDMOs. Rather than simple deals, it is more about a win-win for both participants with risk-sharing and long-term relationships. Apart from cost reduction, the major motivation for partnerships is the ability of CRDMOs to offer product quality, on-time delivery, regulatory compliance, safety, and value across all steps under one roof. Partnering with a CRDMO also helps a company that is shifting its portfolio away from a product that represents a large portion of revenue but is decreasing in value. It also allows the company to concentrate internal capacity on newer, higher-value products. CRDMOs are developing new service models focused on resource flexibility and shared risk. The partnerships may range from very basic supply agreements to complex investments in production facilities that the partners jointly build and run. Partnership strategies may include: 

•    Fee for Service
•    Reserved Capacity (“Take or Pay”)
•    Dedicated Suite (“Condo”)
•    Joint Venture
•    Global Enterprise

Personalized Medicine – A Major Growth Engine

The healthcare industry is constantly adapting to patient needs and global trends. Many healthcare companies have shifted their focus towards personalized medicine and are producing small volumes of medications that target a very small patient population. Personalized medicine is expected to revolutionize the healthcare and CRDMO industry. Companies are offering products tailored to individual patients based on the genome of the patient. It allows the companies to increase the quality of care rather than focusing on quantity. The active pharmaceutical ingredients (APIs) and formulations developed for personalized medicine are more complex and require specialized handling. It is not financially possible for pharmaceutical companies to build a new manufacturing plant for each small volume medication therefore, they outsource the service to third-party partners.

Capacity Constraints – A Bottleneck for the Market

Capacity constraint is expected to restraint the growth of the CRDMO market to a certain extent. The demand for outsourcing CRDMO services is so extensive that healthcare companies are paying extra to wait in production lines years in advance. The average waiting time ranges from 16-24 months.

APAC Set to Drive the CRDMO Market

The Asia Pacific region is expected to be the fastest-growing region in the global contract research, development, and manufacturing (CRDMO) market. The growth of the region can be attributed to the factors such as the growing pharmaceutical & biopharmaceutical industry, access to a large patient pool, favorable regulatory environment, and considerably lower manufacturing cost as compared to North America and Europe. Countries such as India and China in the APAC region, are expected to offer significant growth opportunities owing to the presence of a large number of API manufacturers and rising investments in the healthcare industry. 

Rising government initiatives in the APAC is another factor driving the APAC CRDMO Market. For instance, the Government of India has opened a channel for drug manufacturers under initiatives such as Ayushman Bharat and Jan Aushadhi Yojana to provide quality and affordable medicines to every village in the country. The Indian government has set up more than 76,000 health and wellness centers (HWC) in the country with an emphasis on implementing modern health infrastructure across a network of hospitals and modern laboratories. 

Snapshot - Competitive Landscape 

The CRDMO market is marked by the presence of prominent players such as Thermo Fisher Scientific, Catalent, Inc, Lonza, Recipharm AB, AbbVie Inc, Almac Group, Evonik, WuXi AppTec, Samsung Biologics, Corden Pharma International, Syneos Health, Parexel International Corporation, IQVIA, Labcorp Drug Development, Charles River, ICON plc, PPD Inc., Bioduro-Sundia, Eurofins Scientific, Curia Global, Inc., among others.

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