What are “3 Key Trends” shaping the CDMO industry in 2023 and beyond? Bora Pharmaceuticals’ chief executive officer, Bobby Sheng, shares his thoughts with Contract Pharma.

Outsourcing to leading development and manufacturing experts is driving the production of pharmaceuticals
Outsourcing is not a new term for the pharmaceutical industry, with many biotech and pharma companies working with contract development and manufacturing organizations (CDMOs) to produce essential medicines. Considering their vital role in the successful fast delivery of vaccines to patients during the pandemic, the world is truly recognizing CDMOs as leading experts in therapeutics production, both in the large and small molecule space. With increasing recognition of the benefits of outsourcing, there is a growing reliance on CDMOs to develop and manufacture most of the world’s pharmaceutical products. As CDMOs demonstrate the ability to develop cost-effective solutions, quickly adapt to client needs, and use their expertise to consistently produce high-quality pharmaceuticals efficiently, demand for their support in delivering critical medicines to patients is likely to continue rising in the future.

Increasing demand for producing novel biologics at speed
The biologics market continues to experience extensive growth, with a predicted compound annual growth rate (CAGR) of 9.1%, from $382 billion in 2022 to a forecast value of $893 billion by 2032.¹ This trend is largely being driven by an increasing need for novel therapies targeting chronic diseases, including cancer treatments. Biologics represent a rich source of new therapies with untapped potential that continues to expand as our understanding of these complex molecules increases.

The rising need for biologics is putting pressure on the industry to bring these essential products to market within shorter timelines with a reduced supply chain length and improved manufacturing efficiency. Engaging external partners to help reach this goal is becoming the new normal, and it is transforming contract manufacturing into a robust, flexible “enabler” of these often life-changing drugs. The expanding reliance on CDMOs to assume development and manufacturing responsibilities is reflected in the global biologics CDMO market forecast of $11.27 billion in 2021, expected to reach $21.97 billion by 2027, growing at a CAGR of 11.51%.²

Expanding operations in Asia and North America
A considerable proportion of the large-molecule therapeutics currently on the market were developed and manufactured by CDMOs. Coupled with the increasing pace of investment into the biopharma industry, the reliance on outsourcing partners is driving growth in global CDMO capacity.

Bolstered by enhanced regulations, innovation, and government support, this boom in biopharmaceutical capacity is particularly prominent in Asia and North America.³ Manufacturers in these regions are adapting quickly, working to move on from a traditionally biosimilar-dominated space to adjust to the changing regional and domestic markets by expanding their capabilities and operations. Mergers and acquisitions are enabling this goal of catering to the growing biologics demand, allowing the world’s CDMOs to deliver high-quality, innovative therapies to patients safely and affordably.

References
1. Biologics Market Size, Share, Growth | Research Report [2032]
2. Biologics CDMO Market Analysis – Industry Report – Trends, Size & Share (mordorintelligence.com)
3. The Rise of Biopharmaceutical Manufacturing in Asia | Pharmaceutical Engineering (ispe.org)