CMO Formulation Market Trends
Category Intelligence on CMO Formulation covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on CMO Formulation
- The global CMO Market is growing at a CAGR of 12–13 percent CAGR between 2018E and 2022 E
- 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
- 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
- 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.