Press release
Pharmerging Contract Manufacturing Market Set to Grow Exponentially During the Forecast, 2026
Pharmerging markets indicate the most promising emerging markets in the pharmaceutical domain. Most of these markets are currently exhibiting growth rates moderate to high indicating sustainable demand prospects. The global pharmaceutical market is projected to expand at CAGR of 4–7% between 2015 and 2026 to reach US$1.5 trillion by 2026. This indicates revenues from companies at ex-manufacturer price levels excluding rebates and discounts. Industry experts note that the U.S. and pharmerging markets are expected to account for more than 60% of sales and 80% of sales growth over the next five years. Contract manufacturing of pharmaceuticals is witnessing steady acceleration in pharmerging markets given high demand for medicines in these countries. For example, consumer medicines form a substantially large portion of pharmerging markets and manufacturers want to source the production of these medicines in the target market themselves. Given the growing complexity in supply-chain of highly potent drugs (both small molecules and biologics); there is a growing trend of outsourcing early-stage analytical, formulation, and commercial development of the medicines. This shift offers CDMOs more opportunities to partner and offer services within the drug product lifecycle. Specifically experts notes that outsourcing the bulk manufacturing of drugs is gradually gaining traction in countries in Asia-Pacific.Pharmerging Contract Manufacturing Market: Drivers and Restraints
Growing demand for generics in pharmerging markets due to affordability issues is the single most important revenue growth driver of the CMOs in pharmerging markets. Favorable government policies promoting localization are expected to create pull factors for generally manufacturers of generic products rather than originals. Companies having large portfolios, integrated distributors, strong stakeholder relationships, and quick decision-making processes in place are expected to witness dynamic growth compared to others. Other success factors of CMOs include proven record of accomplishment in continuity of supply, unchallengeable quality, competitive pricing and presence of adequate skilled workforce.
Barriers include non-availability of adequate sterile infrastructure to manufacture injectable drugs and other aseptic formulations. Availability of skilled labor to assist manufacturing of highly potent APIs, cytotoxic drugs, other biologics are factors expected to halt production. Other barriers include limited access to foreign capital, lack of transparency in emerging markets and fluctuations in government policies.
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Pharmerging Contract Manufacturing Market: Segmentation
Global pharmerging contract manufacturing market can be segmented in multiple ways. A few these segmentation approaches are based on Product, Class, Therapeutic Area, and, CMO type.
Based on the product class, the pharmerging contract manufacturing market is segmented into the following:
Branded Drugs
Branded Generics
Generics
Based on the drug class, market is segmented as:
Small molecule Drugs
Generic Drugs
Highly-potent drugs and cytotoxic drugs
Large Molecule Drugs
Monoclonal Antibodies
Vaccines
Interferon
Insulin and analogs
Others
Based on the therapeutic class, the market is segmented into the following:
Cardiovascular
Oncology
Diabetes
Infectious Diseases
Others
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Pharmerging Contract Manufacturing Market: Market Overview
The market for CMOs is gaining traction across regions and market given CMOs are increasingly being considered strategic partners, in production through sharing greater amounts of the portfolio volume, and less as step-in organizations to smooth out manufacturing peaks.
Geographically, pharmerging contract manufacturing market is classified into regions viz. Latin America, Europe, APAJ, Middle East and Africa. In terms of geography, Europe accounts for the largest market share followed by APAC. Favorable policies, regulations and sophisticated healthcare infrastructure with increasing FDA approvals is expected to drive revenue growth of the market in the near future. Markets in Asia Pacific represent the fastest growth for generic drugs owing to growing number of CMOs, CROs and CDMOs coupled with development of favorable infrastructure across countries in the region. It is predicted that much traction in solid dosage contract manufacturing could be noted in markets such as China and India as more facilities in these countries receive U.S. and EU CGMP certifications and approvals. Much activity is expected to be noted on both clinical and commercial phases over the near term in these pharmerging markets.
Few key players in pharmerging contract manufacturing market are Cipla, Piramal Healthcare, Aurobindo, Jubilant Life Sciences, Zydus Cadila, Alkem, Intas, Lupin, Torrent, FDC, etc. apart from includes and others. Some of China’s leading CMOs include Asymchem Laboratories, Beijing Second Pharmaceutical, Chongqing Huapont Pharmaceutical, Porton Fine Chemicals, Shandong Xinhua Pharmaceutical, etc. These players are entering into strategic collaborations, mergers & acquisitions, and product portfolio expansions, which are their key sustainability strategies to maintain their profit margins in the long run. Also many startup companies’ have entered in this lucrative market space to capitalize over the opportunities present in therapeutic laser system market.
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