Biopharmaceutical Contract Manufacturing Organizations, or biopharmaceutical CMOs, provide contract services to other biopharmaceutical companies, including packaging and drug manufacturing. This enables major companies to outsource their production operations, allowing them to concentrate on drug marketing and discovery in the biopharmaceutical CMO market. Multiple small biotechnology companies outsource their fill & finish manufacturing needs due to lack of in-house production capacity, which helps to lessen the need for capital expenditures. Fortune Business Insights™ notes that the biopharmaceutical CMO market size was valued at USD 9.64 billion in 2020 and will grow to USD 26.49 billion by 2028 at a CAGR of 12.6% during the projected period.
Biopharmaceutical manufacturing is closely related to research & development (R&D) and necessitates a significant amount of scientific know-how and infrastructure. Similarly, an innovative ecosystem can act as a general enabler of manufacturing advancements. For example, start-up hubs encourage the exchange of ideas and best practices, whereas academic institutions frequently provide needed talent and resources. For many biopharma companies, advanced innovation ecosystems have frequently facilitated the connection between manufacturing and R&D.
Influence of Manufacturing Advancements on Society
The potential consequences of advanced manufacturing technologies extend beyond biopharmaceutical manufacturers’ collaboration, talent, and location strategies. Instead, they spread throughout the industry and society, potentially benefiting patients today and in future. Patients, at the most basic level, are the ultimate beneficiaries of manufacturing innovation. The majority of new technologies aid in faster scale-up, potentially accelerating the introduction of new life-saving products to market and can increase manufacturing yields. Meanwhile, new combination products and advanced drug delivery features may help improve prescription adherence, potentially leading to more effective treatment for patients. Advanced technologies that are being implemented generally result in fewer quality issues and/or have a positive economic impact, potentially allowing more resources to be spent on R&D and future drugs.
COVID-19 Impact: Growth Potential for COVID-19 Vaccines in the Wake of the Pandemic
Globally, the COVID-19 pandemic has become a prominent public health concern. Since the outbreak of the virus in China, its effects have been felt across the world. The healthcare industry’s revenue growth was significantly impacted. However, the global market experienced a positive effect. As COVID-19’s impact grows, the biopharmaceutical market is aiming on building safer and more effective vaccines to contain the infection, along with developing and studying new therapies to cure those who have been exposed to the virus.
Demand for Biopharmaceutical CMO Services to Increase with Robust Pipeline of Biologics
As biotechnology and pharmaceutical firms increase their spending on outsourced contract manufacturing and production services, the market will continue to expand. The biopharmaceutical CMO market growth is expected to expand by double digits over the projection period, with smaller CMOs expected to grow at a faster rate than larger CMOs. The growth of the biopharmaceutical CMO market share is attributed to the increasing number of biologics pipelines expected to be launched during the prediction period. The growing number of biopharmaceuticals in development will surge the demand for outsourcing services.
Outsourcing Services for Fermentation and Cell Culture of Mammals to Gain Traction
One of the market’s ongoing trends is an increase in demand for outsourced microbial fermentation services and mammalian cell culture between 2018 and 2020. There has been a recent increase in companies developing biologics based on these processes, such as monoclonal antibodies and recombinant proteins, which resulted in increased demand for microbial fermentation and mammalian cell culture outsourcing. Furthermore, a robust number of biologics in the pipeline across several companies has increased the demand for these services in mammalian cell culture.
Will Biopharmaceutical CMO Industry Potentially Benefit Society?
The demand for high-quality, easily accessible complex medicines is driving innovation in biopharmaceutical manufacturing technologies, which is changing the industry as a whole and potentially benefiting society. From an industry standpoint, the advancements have prompted biopharma manufacturers to take strategic actions regarding the manufacturing workforce, collaborations, and location. Manufacturing technology innovation is inextricably linked to R&D discoveries, as advancements in one necessitate advancements in the other. With the advancement of manufacturing technologies and the evolution of biopharmaceutical portfolios over the next few years, the biopharmaceutical industry will have great opportunities to grow.