North American CDMO market poised to boom to $8.65 billion by 2026 – report – Endpoints News

The CDMO market has grown significantly over the past few years, and thanks to changes in manufacturing trends, this growth is not expected to slow down any further. It could reach $8.65 billion by 2026, according to a report released Monday by Technavio.

North America is poised for the strongest market growth over the next four years with an expected growth of 41%, driven in large part by the popularity of mammalian, microbial and cell therapy services, Technavio found. The prediction follows increased domestic drug production after Covid-19 restrictions, import/export controls and supply chain issues led companies to prioritize manufacturing in the country. WuXi, Fujifilm, Catalent and Lonza have all bolstered manufacturing in the United States, either through mergers and acquisitions that expand their footprints or simply by buying land and constructing a new building there.

Capacity constraints are the biggest challenge the market continues to face going forward, Technavio reported. The shortage of cost-effective single-use products, coupled with the high cost of downstream purification, has prevented CDMOs from operating at full capacity. This, according to the report, is not going away anytime soon.

In November, ahead of its annual conference, CPhI released a report that by 2025 nearly half of capacity will move from in-house manufacturing to CDMOs and hybrid businesses. He also noted that if trends remain constant, major contractors such as Korea’s Samsung Biologics, Switzerland’s Lonza, WuXi Biologics and Fujifilm Diosynth Biotechnologies will be responsible for more than half of manufacturing capacity. Covid-19 contracts are largely to thank, the CPhI expert said, partly because of the work those contracts guarantee, partly thanks to the excess revenue that has allowed companies to diversify.

Technavio and CPhi studies found the same major players: Fujifilm Diosynth, Samsung Biologics, WuXi Biologics, Catalent and ACG Biologics

When the study began in 2019, Asia held almost 40% of the world’s CDMOs, with North America accounting for 24% and the Middle East and Europe accounting for 9% and 7%, respectively.

A key driver of market growth is the availability of profitable resources in emerging markets, according to the report, and uses India as an example. The country is expected to contribute one-third of all CDMO revenue globally, and its access to the more than 100 FDA-approved facilities in the country will allow it to grow significantly in the near future.

South America is expected to have the best performing market between 2019 and 2024, while Europe is expected to experience the slowest growth during the same period. This despite the fact that two of the top four countries contributing to the total market percentage in 2019 were Germany and France.

Technavio’s scope is not limited to pharma: it released a similar report on the global running gear market on Monday, highlighting Adidas and New Balance among key players in the industry which is expected to grow by 10 .5 billion dollars. The company has a library with more than 17,000 reports, she says.

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