IDBS Blog | 4th October 2018
CMO Market Continues to Grow
As the biologics market matures at an expected growth of 7-9% through to 2022 – reaching $3.8bn, it substantially influences the CMO/CDMO market with notable mergers and acquisitions in the space.
This year we’ve seen Catalent’s acquisition of Juniper, Emergent BioSolutions’ acquisition of PaxVax and European-based cGMP, expanding its R&D and manufacturing capabilities.
First class CMO/CDMO organizations are continuing to invest in improving their operational excellence and expanding their overall businesses. In this age of spiralling research and development costs, with added pressure to minimize risk and maximize reward in bringing new drugs to market, we have seen drug developers cut down on the number of suppliers they employ and form strategic partnerships with contractors instead. Such strategic partnerships help to bring drugs to market quicker and improve overall efficiency.
With increasing pressure on keeping down costs and a heavy regulatory burden, drug developers are demanding an end-to-end or ‘full’ service from contractors. High expectations and a growing market are continuing to shape the CMO industry at an unprecedented rate.