Biologics Contract Development and Manufacturing Organization (CDMO) are known to provide biological medical products, development, and manufacturing services in the pharmaceutical industry. They are known for having specialization in the development and manufacturing of biologics and for providing services to other pharmaceutical companies in the production, manufacturing and development of biologics and small molecule drugs. Biologics, also known as biopharmaceuticals, are medical products that have been developed and manufactured by pharmaceutical companies. The services that are commonly provided by biologic CDMOs include formulation, dosage, stability, research and development, and manufacturing of biopharmaceutical products.
There are various leaders in the biologics CDMO market. Ascendia Pharmaceuticals is a biologics CDMO that is known to have specialization in drug delivery technology that is known for optimising formulations for large biopharmaceuticals and other molecule drugs in the market. Some of their well-known biologic technologies include EmulSol®, NanoSol®, and AmorSol®, helping the company successfully formulate almost all new compounds in the market.
Introduction:
The global biologics CDMO market is expected to witness significant growth during the forecasted period of 2024-2029, due to factors such as the increased investments in research and development in the pharmaceutical industry.
Market Drivers:
For instance, as per the Congressional Budget Office of the United States, the pharmaceutical industry accounted for an estimated spending of US$83 billion on Research and Development. Furthermore, the estimated cost for the development of new drugs, which includes capital costs and expenditure on drugs that fail to reach the market, accounted for less than $1 billion or more than $2 billion per drug. The increase in R&D investments will further boost the pharmaceutical market growth, which further drive the global biologics CDMO market growth during the forecasted period.
Key Players:
Regional Analysis:
The Asia Pacific region will be expected to witness a significant increase in growth in the biologics CDMO market during the forecasted period. China and India are expected to contribute to the majority of the market growth in this region due to the increasing growth of the biotechnology industry and the pharmaceutical industry in the countries. The pharmaceuticals and biotechnology companies are the major growth drivers of the biologic CDMO market, since biologics CDMOs are known for specializing in the manufacturing and development of biologics and also provide services for biologics and small molecule drugs. Due to the high relevance of this industry in the pharmaceutical and biotechnology industry, the growth of the industries will drive the biologics CDMO market growth during the forecasted period.
For instance, as per Invest India, the Indian Bioeconomy had crossed an estimated $130 billion in 2024. Furthermore, the biotechnology industry in India is expected to increase to reach $150 billion by 2025 and $300 billion by 2030, with an estimated CAGR of 17% between 2024 and 2030. This increase in the rise of the Indian biotechnology industry can drive the regional biologics CDMO market growth with advancements in biotechnology and biologics technologies for improved pharmaceutical products and services.
Another factor in the biologics CDMO market growth is the increasing growth of the pharmaceutical industry. As per the IBEF, the Indian pharmaceutical sector is expected to increase to US$65 billion in 2024 and is further projected to increase to reach US$130 billion by 2030, and had a CAGR of 6-8% between 2018 and 2023. It was also stated that the Indian biotechnology industry accounted for a valuation of US$80.12 billion in 2022, which was an increase in growth of 14% from 2021. Additionally, China accounts for the majority of the pharmaceutical ingredients production worldwide, further increasing the regional biologics CDMO market. As per the International Trade Administration, the Chinese pharmaceutical market was expected to reach $154 billion in 2020, which was an increase from $134 billion in 2018. Therefore, the increase in the pharmaceutical industry expansion drives the regional biologics CDMO market growth during the forecasted period.
Market Developments:
Segmentation: