Factors Driving the Biopharmaceutical CMO & CRO Industry

The global biopharmaceutical CMO and CRO market size is expected to reach USD 49.2 billion by 2028, according to a new report by Grand View Research, Inc.

Biopharmaceutical relates to any pharmaceutical drug product that has been manufactured or extracted from biological sources. You may have heard the term ‘biologic’ thrown around over the past few years…well, that is another term for biopharmaceuticals. Teva Pharmaceuticals has enlisted some features of biopharmaceuticals, which include: being produced using innovative biotechnological methods, being heat-sensitive and easy to contaminate, and being difficult and expensive to manufacture, store and transport. These drugs have a huge potential for precise, targeted treatments. It is no wonder then, that the biopharmaceutical industry has developed by leaps and bounds over the past few years.

However, with the continued stream of developments in this ever-expanding sector, there has come a need for cutting back on the in-house costs, while simultaneously maintaining the capacity and product quality, and respecting the timelines. It is here that the concept of CMOs and CROs has gained popularity across the globe. Credible reports certainly back the biopharmaceutical CMO and CRO market to grow well in the coming years, with GVR forecasting the industry size to hit the USD 50 billion mark by 2028. With a number of major companies playing their part in transforming and revolutionizing the industry, it is imperative that advancements are made quick and fast, so as to not fall behind the competition.

Partnerships, mergers, acquisitions = The way to glory?

What is currently being observed in the pharma and biopharma sector is the insistence on creating partnerships very early on in the drug development process. The main ask for service providers then, becomes addressing various drug development challenges, across different platforms. Wilbert Frieling from Charles River has opined that there is an increasing need for diversification among biopharmaceutical organizations, which entails maintenance of a close relationship of the CRO industry with its clients. Furthermore, a noticeable trend being witnessed in the industry is the presence of deep technical knowledge regarding the various complexities involved in the process, as well as introduction of innovative technologies for rapid delivery of clinical therapeutics.

Over the past few years, the biopharmaceutical sector has witnessed a number of notable mergers and acquisitions, which has made them an attractive prospect for companies looking for rapid product launches. A number of consolidations, aimed mainly at business expansion and maintaining competitiveness, have become a norm in the industry. Further fueling the development is the advent of novel therapeutics, new bioprocessing tools, and the constant pressure on stakeholders regarding priority shifts pertaining to products. Another factor that is expected to prove to be a vital cog in the industry machinery is the integration of single-use systems, which help production facilities to economically expand manufacturing capacities.

Related Blog @ Taking a Peek Into The Biopharmaceutical CMO and CRO Market