Market Trends of Global Formulation Development Outsourcing Industry
This section covers the major market trends shaping the Formulation Development Outsourcing Market according to our research experts:
The Oncology Segment is Expected to Witness Significant Growth over the Forecast Period
By application, the oncology segment is anticipated to hold a major share of the market. This can be attributed to the rising incidence rates of cancer cases globally. According to the World Health Organization (WHO), cancer accounted for approximately 10 million deaths in 2020. Additionally, as per the 2021 statistics by the American Cancer Society, by 2040, the global burden of cancer is expected to grow to 27.5 million new cases and 16.3 million cancer deaths.
Formulation development plays a vital role in anti-cancer drugs, as formulation issues, including stability, solubility, and bioavailability, are important considerations for the drug development process. Hence, most pharma service companies are focused on oncology formulation development to provide end-to-end solutions for oncology drug development. For instance, in November 2021, Oncology Pharma Inc. revealed plans for the development of a lead drug candidate in a co-development project with NanoSmart Pharmaceuticals Inc. Likewise, in October 2021, Metrics Contract Services, the US-based contract pharmaceutical development and manufacturing division of Mayne Pharma entered a development and manufacturing agreement with ESSA Pharmaceuticals. Metrics will provide formulation development, analytical services, and manufacturing to support the ongoing clinical development of an orally administered oncology drug as a part of the agreement.
Thus, the high incidence rates of cancer cases and the increasing focus on cancer therapeutics by biopharmaceutical companies are expected to aid in the growth of the segment over the forecast period.
North America is Expected to Hold Significant Market Share over the Forecast Period
Within North America, the United States is expected to hold a major share of the market. This can be attributed to the growing burden of chronic diseases and the presence of key players in the region, especially in the United States. As most of the major drugs are in the stage of patent expiration, key players are involved in novel drug development. In this context, to save time and investment on a series of clinical trials and evaluation studies in formulation development, pharmaceutical companies are outsourcing formulation development services to CROs, which may drive market growth in the region.
Additionally, amid the COVID-19 pandemic, several collaborative research programs are looking to fast-track their process in terms of advancing therapeutics and vaccines by collaborating with institutions, such as the Biomedical Advanced Research and Development Authority (BARDA) and Coalition for Epidemic Preparedness Innovations (CEPI). For instance, in May 2020, the United States Department of Commerce's National Institute of Standards and Technology (NIST) funded around USD 8.9 million to the highly impacted biopharmaceutical manufacturing projects in response to the emerged outbreak. Therefore, such initiatives are contributing to the increasing outsourcing for formulation development, thereby contributing to the market growth.
Moreover, several market players are engaged in the implementation of strategic initiatives, thereby contributing to market growth. For instance, in January 2022, Recro Pharma Inc., a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges primarily in small molecule therapeutic development, reported being awarded a new formulation development and cGMP manufacturing contract from a key department of the United States government.
Thus, due to the above-mentioned factors, the market is expected to witness significant growth over the forecast period.
