Market Trends of Biopharmaceuticals Contract Manufacturing Industry
This section covers the major market trends shaping the Biopharmaceuticals Contract Manufacturing Market according to our research experts:
The Vaccine Segment is Expected to Hold Significant Share in the Market over the Forecast Period
The vaccine segment holds a significant market share in the biopharmaceuticals contract manufacturing market. It is anticipated to showcase a similar trend over the forecast period owing to increasing advancements in monoclonal antibody therapy.
The COVID-19 pandemic indicated the potential of vaccine manufacturing and outsourcing as a sustainable revenue stream for companies operating in the market studied. Following the COVID-19 vaccine, the introduction of boosters is expected to create a favourable landscape for the growth of CMO vendors. For instance, in October 2021, Novartis announced an initial agreement to use its manufacturing capacity and capabilities to address the COVID-19 pandemic by expanding its support of the Pfizer-BioNTech COVID-19 vaccine fill and finish. Novartis was set to complete at least 24 million doses in 2022 using its sterile production capabilities at the Novartis Technical Operations plant in Ljubljana, Slovenia. Thus, the increase in CMO agreement for COVID-19 vaccines is expected to boost the growth of the segment.
Besides, initiatives by various governments and health organizations worldwide to provide vaccinations to all people also contribute to the growth of the market studied. For instance, as per the WHO, in February 2022, Djibouti's Ministry of Health, with technical support from the WHO and UNICEF, launched a five-day national polio vaccination campaign to vaccinate approximately 150,000 children in Djibouti. These vaccine drives focusing on the preventive measures for various diseases are expected to drive the growth of the market studied during the study period.
The various strategies adopted by the market players, such as product launches, mergers, and acquisitions, are expected to boost the growth of the segment. For instance, in January 2022, Recipharm AB reported a deal with a big pharmaceutical company to support vaccine manufacturing from its facility in Kaysersberg, France. The company invested almost EUR 14 million into its vaccine manufacturing offering at the site.
Thus, the segment is expected to witness significant growth over the forecast period due to the above-mentioned factors.
North America is Expected to Hold a Significant Share in the Market and Expected to do the Same in the Forecast Period
Within North America, the US is expected to hold a major market share in the biopharmaceutical contract manufacturing market due to the presence of several biopharmaceutical companies with large production capacities, leading to the high consumption of biologics in this region. According to January 2022, update from the CDC, tuberculosis incidence rose 9.4% during 2021 (2.4 cases per 100,000 persons) compared to previous years in the United States. As the burden of chronic diseases is expected to rise, so is the need for biological drugs used in treating such conditions. As a result, the need for contract manufacturing products is expected to rise.
Moreover, several market players are engaged in the implementation of strategic initiatives such as mergers and partnership agreements. For instance, in March 2021, Baxter International Inc. agreed on Baxter BioPharma Solutions (BPS) to provide fill/finish sterile manufacturing services and supply packaging for approximately 60-90 million doses of the Moderna COVID-19 Vaccine in 2021.
Thus, due to the above-mentioned factors, the market is expected to witness significant growth in the region during the forecast period.
