CATEGORY

CMO Formulation

Formulations CMOs offer manufacturing service for Pharmaceuicals like Tablet, Capsule, Injectables, etc. The Global gelatin market is USD 2.6 billion in 2018, It is estimated to grow at a CAGR of 6.6% till 2023

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CMO Formulation Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in CMO Formulation category is 25.00%

Payment Terms

(in days)

The industry average payment terms in CMO Formulation category for the current quarter is 85.0 days

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SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    CMO Formulation Suppliers


    160
    Total Suppliers
    3
    Diverse Suppliers
    93
    Normalized Supplier Rating
    CMO Formulation Supplier

    Find the right-fit cmo formulation supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    Catalent Inc.
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

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    Up to 3 months

    1 9
    1
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    33

    100
    Limited (1)
    ESG Perfomance (/100)
    Environment
    30
    Social
    26
    Governance
    43
    6 Domains Performance (/100)
    Business behaviour
    34
    Human rights
    32
    Community Environment
    15
    Corporate governance
    56
    Human resources
    26
    Security Scorecard
    79

    Threat indicators
    A
    91
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    F
    52
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    D
    62
    Application Security
    Detecting common website application vulnerbilities
    A
    100
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    100
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    90
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    catalent.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    0
    Human Rights Issues
    0
    Production Supply Chain Issues
    0
    Environmental Non Compliance Flags
    0
    Corruption Issues
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    Regulatory Non Compliance Flags
    0
    Fraud Issues
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    Labor Health Safety Flags
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    Regulatory Issues
    0
    Workforce Disputes
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    Sanctions
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    esg energy transition
    21
    Discrimination Workforce Rights Issues
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    esg controversies critical severity
    No

    CMO Formulation Market Intelligence

    global market outlook

      • The global market size of pharmaceutical CMO is around USD 128 billion in 2021 and the global market size of CMO formulation is around USD 37 billion in 2021.
      • The CMO formulation market is growing with a CAGR 4-5% till 2025
      • North America dominates the global CMO market followed by Asia-Pacific region. APAC region is expected to grow with a rate of 10-11% in the market
      • The raw material cost varies according to the API and excipients used in the production of tablets and has a major impact on the production cost. In certain formulations raw material cost can be as high as 85-95 percent as well
      • Medium and generic companies have outsourced drugs to Indian CMOs for developed markets. Big Pharma, like Pfizer, BMS, AbbVie, also have Indian partners for their US market needs. This trend is likely to continue in future, thereby driving the Indian CMO business for the US market

    CMO Formulation market report transcript


    Global Market Outlook on CMO Formulation

    • The Global CMO Market is growing at a CAGR of 6.4 percent CAGR between 2020 and 2025
    • The growth is attributed to increased outsourcing of generic drugs by Big Pharma companies. Additionally, medium and small pharma companies, who do not possess adequate infrastructure, will also outsource, thereby driving the market
    • Presently, non-sterile dominate the global CMO market. However, the sterile CMO market is expected to grow at a higher rate (15 percent) than non-sterile market (9 percent)

    Global CMO Formulations: Market Overview

    Supplier Concentration: Sterile CMOs
    The CMO sterile market is fragmented, with major players, such as Baxter, Catalent, Patheon, etc. However, CMOs differentiate their capabilities, based on their ability to handle the high potent drugs (OEL limit).Supplier

    Concentration - Non-Sterile CMOs
    Fragmented market, with a large number of players and varying ranges of capacity, capabilities, and regulatory compliances. Asian CMOs are offering competitive cost benefits, thus giving a stiff competition to CMOs in developed markets.

    Global CMO Formulations Market - Drivers and Constraints

    Drivers

    • The pharmaceutical sector's tendency to focus on core competencies and a trend to outsource formulations to CMOs to achieve cost savings are the major market drivers.
    • Requirement for end-to-end service providers, including drug development and manufacturing, is further driving the CMO market.
    • In emerging markets, countries, such as Russia, Ukraine, Indonesia, and Iran, are promoting domestic production of drugs, which is expected to boost the outsourcing to regional CMOs

    Constraints

    • As the market is highly fragmented, margins of traditional CMOs, who offer conventional manufacturing services, are under pressure.
    • Introduction of GDUFA is expected to have a negative impact on CMOs' profits. In such cases, small CMOs are expected to transfer the incremental cost to their customers, which would affect their business.
    • CMOs predominantly manufacture generic drugs. The volume of generic drugs decreases annually, leading to a constant look out for business to maintain their utilization rates

    Key Industry Trends and Market Shifts

    • Currently, in the developed market, solid dosage dominates the outsourced market
    • Over the next five years, the sterile CMO market is expected to grow at a higher pace
    • In the US, the sterile CMO market is expected to grow at 11–13 percent as against the solid dosage growth of 3–5 percent
    • Emerging market CMOs would offer stiff competetion to develped market CMOs in solid dosages

    CMO Market Overview 

    • The global CMO market is fragmented. To sustain in the market with high-profit margins and to compete with each other, CMOs have started innovating technologies across dosage forms. OptiMelt, SmartTag, AdvaSept, Nanomiling, etc., are examples.
    • Formulation CMO proprietary technologies have made the pharma companies to shift to CDMO partnerships.
    • Existing utilization rates among CMOs globally assures adequate number of CMOs.
    • Increase in pharma outsourcing from 17–20 percent to 28–30 percent by 2018.
    • Upgradation of facilities by CMOs in aseptic filling, lyophilization, and disposable technologies.
    • The global CMO market for finished dosage sterile formulations is highly capital intensive.
    • The CMO market for finished dosage formulations in established (developed) markets is fragmented, with many players having similar processing and technological capabilities.
    • CMOs are transitioning their relationship from being a manufacturing partner to a strategic partner by offering end-to-end service. 
    • Due to the fragmented nature, CMOs are under pricing pressure. Though the revenue of CMOs has increased in the last two years, their profit margins have been stagnant.
    • There is a fragmented market for finished dosage formulation CMO. In order to sustain in the market, the CMOs have to continuously evolve with innovative technologies and best manufacturing practices.
    • Most of these finished dosage formulation CMO source excipients from emerging economies, like BRIC nations and APAC, which are dominated by a large number of suppliers. In case of patented excipients sourcing, supplier will have a higher bargaining power

    Why You Should Buy This Report

    • Information about the global CMO market size, market overview, drivers and constraints, etc.
    • Regional market outlook of formulation CMO in US, China, India, and Europe.
    • Day one analysis, category portfolio analysis, AQSCIR, SWOT analysis of the global CMO market and Porter’s five force analysis of CMO sterile and non-sterile formulations.
    • Emerging CMO trends,  supplier analysis, key supplier profiles, etc.
    • Best procurement practices, cost structure, sourcing, etc.