Healthcare CMO Market Forecasts High Growth Owing To Rising Outsourcing Trend

 

Healthcare CMO Market
Healthcare Cmo Market

The Healthcare Cmo Market is estimated to be valued at US$ 326.8 Million in 2021 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.


Market Overview:


The healthcare CMO market consists of companies that provide contract manufacturing and development services for pharmaceutical and biopharmaceutical companies. These services include manufacturing of active pharmaceutical ingredients, drug formulation development, packaging and labeling. Outsourcing manufacturing helps pharmaceutical companies focus resources on drug discovery and marketing while ensuring expertise, regulatory compliance and economies of scale in production.

Market key trends:


Rising trend of outsourcing non-core activities is a major driver for the healthcare CMO market growth. Pharmaceutical companies are increasingly outsourcing manufacturing to contract service providers to benefit from their specialized expertise and facilities. This allows drug makers to focus on research and development of new drugs. Growing complexity of biopharmaceutical manufacturing is also contributing to increased reliance on CMOs who have advanced production capabilities. Continued growth in biologics and biosimilars market further presents opportunities for CMOs to support manufacturing of these complex drugs.

Porter's Analysis


Threat of new entrants: The risk of new competitors entering the healthcare CMO market is moderate due to the need for regulatory approvals and substantial capital required for infrastructure and operating facilities.

Bargaining power of buyers: Individual healthcare organizations have little bargaining power against large CMOs who have diverse clientele and capabilities. However, larger pharmaceutical companies exert stronger bargaining power.

Bargaining power of suppliers: CMOs face moderate bargaining power from suppliers of raw materials like APIs, excipients, and packaging components since they depend on a limited pool of quality suppliers for critical materials.

Threat of new substitutes: Threat from new substitutes is low since healthcare CMOs provide integrated development and manufacturing capabilities not easily substitutable.
Competitive rivalry: High due to the presence of many large global players operating at scale.

SWOT Analysis

Strengths: Vast service offerings, expertise in handling complex manufacturing processes, and global compliance standards help providers win more clients.

Weaknesses: Heavy capex requirement and dependence on a few large clients make operations vulnerable to pricing pressures and demand fluctuation.

Opportunities: Outsourcing trend and emerging therapies like cell and gene provide scope for expanding services and capabilities.

Threats: Stringent regulatory environment and disruptions like pandemic expose operations to risk of non-compliance and project delays.

Key Takeaways


The global Healthcare CMO Market is expected to witness high growth, exhibiting CAGR of 16.1% over the forecast period, due to increasing cost advantages of outsourcing and complexity of healthcare manufacturing. The US market dominates currently due to presence of many large pharmaceutical companies actively outsourcing manufacturing. Europe and Asia Pacific are fastest growing regions benefitting from their low-cost manufacturing bases and capabilities in biologics.

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.

Regional analysis:

The US market holds a significant share currently due to concentration of pharmaceutical majors and biotech startups who outsource largely. Europe follows US supported by medical innovation centres in Germany and UK. Asia Pacific is emerging as a promising region benefited by capabilities in generics, vaccines and biologics manufacturing in China, India, South Korea and others

Read More : https://www.newswirestats.com/expanding-demand-for-contract-manufacturing-services-to-drive-growth-of-healthcare-cmo-market/

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