CONTRACT PHARMACEUTICAL MANUFACTURING MARKET ANALYSIS

Contract Pharmaceutical Manufacturing Market Size and Trends

Global contract pharmaceutical manufacturing market is estimated to be valued at USD 211.34 Bn in 2024 and is expected to reach USD 403.45 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.7% from 2024 to 2031.

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The contract pharmaceutical manufacturing market is expected to witness significant growth over the forecast period. This growth is attributed to the increasing complexity of drug development process which is compelling pharmaceutical companies to opt for contract manufacturing. Moreover, the rising demand for generics and biologics is further the driving market growth. Additionally, growing focus of pharmaceutical companies on core competencies is resulting in the outsourcing of non-core activities like manufacturing to contract manufacturing organizations. However, high capital investment requirements for facilities and equipment as well as stringent regulatory guidelines can hamper the market growth. But focus on the modernization of manufacturing facilities coupled with emerging role of Artificial Intelligence (AI) and automation provides new avenues for contract pharmaceutical manufacturers.

 Increasing Incidence of Research and Development in Pharmaceutical Manufacturing

Demand for small molecules is considerably high compared to large molecules, owing to its various advantages in manufacturing and clinical trial studies. For instance, in November 2021, Pfizer Inc., a U.S.-based multinational pharmaceutical and biotechnology corporation, announced the successful acquisition of Trillium Therapeutics, a clinical stage immuno-oncology company developing innovative therapies for the treatment of cancer. According to the terms of the acquisition, Pfizer Inc. will purchase all shares of Trillium Therapeutics that are not already owned by Pfizer Inc. for a cash implied equity value of US$ 2.26 billion, or US$ 18.50 per share. This is 118% more expensive than Trillium Therapeutics’ 60-day weighted average price.

Increasing inorganic activities, such as agreements, partnerships, and collaborations, among market players are expected to drive the market growth over the forecast period. For instance, in September 2023, Parexel, a contract research organization (CRO), and Partex, a data-to-drugs pharma platform, inked a deal aiming to leverage artificial intelligence (AI)-powered solutions to accelerate drug discovery and development for biopharmaceutical customers worldwide and de-risk the assets in their portfolios.