The Role of Healthcare CDMOs in Meeting Global Demand for High-Quality Healthcare Products

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Healthcare contract development and manufacturing organization (CDMO) provide outsourcing services to various pharmaceutical industries on a contract basis.

Healthcare Contract Development and Manufacturing Organization Industry Overview

 

The global healthcare contract development and manufacturing organization market size is expected to reach USD 471.0 billion by 2030, growing at a CAGR of 9.68% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is expected to show lucrative growth due to rising outsourcing trends and increasing RD expenditure.

 

Healthcare contract development and manufacturing organization (CDMO) provide outsourcing services to various pharmaceutical industries on a contract basis. An increase in outsourcing by pharmaceutical companies, expansions in the pharmaceutical industry, and the support of CDMOs in reducing operational and capital expenses are some of the major factors anticipated to propel the market growth in the forecast period.

 

In addition, growing requirement among pharmaceutical and medical device companies to follow stringent timelines has increased the demand for outsourcing development and manufacturing activities to CDMOs. Further, due to the increasing demand for medical devices in emerging countries, various companies are shifting their focus on research and development activities for medical device contract development and manufacturing. Over the past 10 years, several pharmaceutical companies have turned to CMOs, CROs, and CDMOs to assist in pre-formulation and development manufacturing of their novel innovations. Outsourcing is a high growth market, and most spending is focused on early development.

 

Gather more insights about the market drivers, restrains and growth of the Healthcare Contract Development and Manufacturing Organization Market

 

Around 75% of new drug pipelines come from small- and midsized biopharmaceutical companies. These companies have high profit margins, which make them easy targets for healthcare providers who are trying to reduce costs. Thus, instead of investing in establishing their own infrastructure, it is profitable for these companies to outsource services to third-party organizations that have expertise and the required equipment. Several pharmaceutical companies are seeking outsourced services for optimizing the development of their molecules.

 

Furthermore, a large number of CDMO collaborations, expansions, mergers acquisitions, and other strategic initiatives undertaken by market players operating in the country are anticipated to boost the market. For instance, In March 2023, Remedium Bio, a U.S.-based biotechnology company, entered into a collaboration agreement with Exothera, a Belgium-based CDMO, to scale up the production of Remedium’s lead gene therapy drug candidate, AAV2-FGF18 in the treatment of osteoarthritis. Similarly, in January 2024, Enzene Biosciences, a subsidiary of Alkem Labs announced the manufacturing site in the U.S. Such innovations are anticipated to drive the market.

 

However, increasing logistic costs, serialization issues faced by healthcare organizations, and the threat of infringement of Intellectual Property (IP) rights are anticipated to restrain the market growth for healthcare contract development manufacturing organization over the forecast period.

 

Browse through Grand View Research's Medical Devices Industry Research Reports.

 

Healthcare Contract Development and Manufacturing Organization Market Segmentation

 

For this study, Grand View Research has segmented the healthcare contract development and manufacturing organization market based on services and region:

 

Healthcare CDMO Services Outlook (Revenue, USD Billion, 2018 - 2030)

 

  • Contract Development
    • Small Molecule
      • Preclinical
        • Bioanalysis and DMPK Studies
        • Toxicology Testing
        • Other Preclinical Services
      • Clinical
        • Phase I
        • Phase II
        • Phase III
        • Phase IV
      • Laboratory Services
        • Bioanalytical Services
        • Analytical Services
      • Large Molecule
        • Cell Line development
        • Process Development
          • Upstream
            • Microbial
            • Mammalian
            • Others
          • Downstream
            • MABs
            • Recombinant Proteins
            • Others
          • Others
        • Contract Manufacturing
          • Small Molecule
          • Large Molecule
            • MABs
            • Recombinant Proteins
            • Others
          • High Potency API
          • Finished Dose Formulations
            • Solid Dose Formulation
            • Liquid Dose Formulation
            • Injectable Dose Formulation
          • Medical Devices
            • Class I
            • Class II
            • Class III

 

Healthcare CDMO Regional Outlook (Revenue, USD Billion, 2018 - 2030)

 

  • North America
    • US               
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Netherlands
    • Belgium
    • Denmark
    • Norway
    • Sweden
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Malaysia
    • New Zealand
    • Singapore
    • Philippines
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
  • Middle East Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Kuwait

 

Key Companies profiled:

 

  • Catalent Inc.
  • Lonza
  • Recipharm AB
  • Siegfried Holding AG
  • Thermo Fisher Scientific, Inc.
  • Labcorp Drug Development
  • Jabil Inc
  • Syngene International Limited
  • IQVIA Inc.
  • Almac Group

 

Recent Developments

 

  • In March 2024, LGM Pharma announced 50% expansion and an investment exceeding USD 2 million in its Analytical Testing Services (ATS) with the introduction of new suppository manufacturing capabilities to its contract development and manufacturing (CDMO) portfolio.
  • In September 2023, WuXi Vaccines had announced vaccines CDMO site in China. The site will add drug substance and drug product capacity with end-to-end services for diversified vaccine that will accelerate project time from process development and drug product development to clinical-scale drug substance and small-to-medium sterile drug product manufacturing.

 

Order a free sample PDF of the Healthcare Contract Development and Manufacturing Organization Market Intelligence Study, published by Grand View Research.

 

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