The biotherapeutics market is the fastest-growing sector in the pharmaceutical industry with sales more than doubling the growth rate of their small molecule counterparts. In fact, the global biopharma market was valued at nearly $240 billion in 2018, and is estimated to be worth almost $390 billion by 2024, an annual growth rate of more than 8%, according to Modor Intelligence. The huge market demand is attributed to the growing acceptance of biopharmaceuticals for their ability to treat previously untreatable diseases.

For instance, one of the main drivers fueling the biopharma market is the need for cancer treatments. Jason Monteleone, chief executive at Clinipace, takes a detailed look at the bio-pharma market from an investor’s perspective, uncovering along the way reasons that make the biotech sector appealing to the investment community. In his article, “Are Biotech Companies Strong Investments?” beginning on page 64, he says the worldwide market for cancer drugs is estimated at $133 billion and expected to reach $200 billion by 2022, averaging 10–13% growth over the next five years, with the U.S. market reaching as much as $100 billion by 2022, averaging 12–15% growth. “According to some estimates, 30% of the revenue growth in the pharma industry will come from oncology, and probably nine of the top 20 products in 2024 will be oncology products,” he said.

The emergence of cell and gene therapies is another hot trend that will continue to drive growth in the biopharma industry. Tommy Fanning, global head of biopharmaceuticals at IDA Ireland, says cell and gene therapy (CGT) is creating a momentous shift in the pharma landscape and reshaping the future of medicine. In his article, “The Coming Revolution of Personalized Medicine” on page 50, he says the worldwide market is predicted to grow from $18.9 billion in 2016 to over $66 billion by 2022 with a compound annual growth rate of 23.3% in this time frame. “The pharmaceutical industry may be moving toward regenerative medicine but there are many significant challenges ahead in taking CGT from a compelling approach to a wide-spread solution backed up by the proven processes, suitable manufacturing facilities and reliable supply chains inherent in creating mainstream medical treatments,” he said.

While the growth of the biopharma market shows no signs of slowing, at the same time, the global biopharmaceuticals contract manufacturing market is naturally poised for continued growth as well. It was valued at $12 billion in 2017 and projected to grow nearly 8% per year over the course of the next several years, keeping pace with the biopharma market at large.

Biopharma companies will rely heavily on the contract service providers moving forward for several reasons. Most importantly, contract manufacturing organizations (CMOs) provide a reduction in overall investment required to bring a new drug product to market. In addition, sophisticated CMOs also provide access to expensive technologies that help get products to market quickly while also offering greater flexibility.

Tim Wright, Editor
twright@rodmanmedia.com