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The Future of the CDMO Market

​The CDMO market has seen an increasingly high amount of competition over recent times due to several reasons which could have an impact on the market in the future.

As estimated by PWC, “The CDMO market is expected to be worth $158 billion by 2025, increasing from $99 billion in 2018. This gives the market a predicated compound annual growth rate (CAGR) of 6.9 percent 1 indicating it will see a strong and persistent growth over the next five years.”

The US is at the forefront of pharmaceutical outsourcing due to the quality aspect, logistics and fantastic research facilities in Boston and San Francisco just to name a few. With Europe a close second, the main region of growth is coming from the Asia Pacific region and mainly from India and China. Not only is this due to considerably lower manufacturing costs but also more favourable regulations.

So where does this leave the future of the CDMO market?

The rise of biologics, particularly in the Cell & Gene Therapy market where innovative CDMO’s are competing against larger competition such as Thermo Fisher, Catalent and Lonza has shaken the market slightly.

The top 5 CDMO’s account for 15% of the market which allows niche and innovative CDMO’s to stand out through advanced technology and specialised expertise. On the other hand, with several merger’s completed in 2019 and some already predicting more for 2020, will consolidation be too fierce for smaller CDMO’s to compete against? We have already seen a rise in CRO’s/CDMO’s becoming a “one stop shop” for clients such as Nuvisan and Quotient Sciences who have seen incredibly positive results.

From our specialist perspective, the CDMO market will continue to grow due to the readiness rising within pharmaceutical companies to engage with outsourcing services, population increase throughout the world and a potential spike in the coming years within large molecule manufacturing due to the COVID-19 pandemic.

The CDMO market has a lot to be excited about for the future. Not only are we looking forward to the increased competition that the Asia specific region will bring and has done for many years, but also the innovation it will drive and how the market will have to adapt. Does the Cell & Gene Therapy market have a promising future and will the number of acquisitions with the CDMO market continue to rise?

It would be great to hear from some of our connections on the future of the CDMO market and how this could potentially affect you organisation or career path.

Mantell Associates is a specialist Pharmaceutical and Life Sciences Recruitment organisation. Please get in contact with Harry Jones on harry.jones@mantellassociates.com or +44 (0) 20 3778 0990.