Market Trends of Pharmaceutical Manufacturing Industry
The Biologics and Biosimilar Segment is Expected to Hold a Major Share in the Pharmaceutical Manufacturing Market
- The biologics and biosimilar segment is expected to hold a significant market share during the forecast period. A biological drug (biologics) is a product derived from living organisms or containing components of living organisms. Biologic drugs include various products from humans, animals, or microorganisms using biotechnology. Some of the major products, like vaccines, monoclonal antibodies, blood, and related products, fall into this category.
- The increasing demand and the rising product approvals of biologics are expected to propel the development and production of novel biologics further, thereby fueling the segment’s growth. For instance, the US Food and Drugs Administration approved 25 new biologics in 2023 compared to 14 in 2022. Thus, increasing biologics approvals are anticipated to bolster segment expansion over the coming years.
- The increasing emphasis on biosimilar manufacturing, owing to benefits like lower cost of development and similar efficacy like biologics, is anticipated to fuel segment expansion over the coming years. For instance, in May 2023, Sandoz invested EUR 25 million (USD 27 million) in its German manufacturing site to bolster its biosimilar manufacturing capabilities. Similarly, in June 2023, Pfizer Inc. and Samsung Biologics partnered for the long-term commercial manufacturing of Pfizer’s multi-product portfolio. This partnership propelled the manufacturing of biosimilars. Thus, the increased emphasis on biosimilar manufacturing is expected to boost segmental growth over the coming years.
- With the increasing significance of biologics and biosimilars, pharma contract manufacturing companies are undertaking several strategic movements, and such initiatives are projected to support segmental growth. For instance, in February 2023, Asahi Kasei Medical's US-based subsidiary Bionova Scientific, a full-service biologics CDMO, announced the expansion of its process development and GMP biologics manufacturing capacity. In addition, in July 2022, Biological E invested USD 217.31 million to expand its vaccine manufacturing capacity, along with generic injectables manufacturing. Thus, such initiatives are projected to foster segmental growth over the coming years.
- Thus, the increasing demand for biologics/biosimilars, increasing approvals of novel biologics, and rising emphasis on biosimilar manufacturing is projected to support the manufacturing of biologics and biosimilars, thereby supporting segmental growth.
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North America is Expected to Hold a Significant Share in the Market During the Forecast Period
- North America is expected to hold a significant market share due to the presence of key pharmaceutical manufacturers and the growing spending on pharma manufacturing. Increasing research and development expenditure, the growing burden of chronic diseases, and the increasing adoption of advanced pharmaceutical manufacturing technologies are projected to support the regional market.
- As per the August 2023 update by the National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), 6 in 10 adults in the United States had a chronic disease, and 4 in 10 adults had two or more chronic diseases, like heart diseases, diabetes, and cancer, in 2022. As per a July 2023 update from Health Canada, cardiovascular diseases were the most common diseases in the country, and around 1 in 12 Canadians had a diagnosed heart disease. Thus, the high burden of chronic diseases in the region is projected to propel the demand for pharmaceuticals, thereby fostering their production.
- As per pharmaceutical market analysis, the rising adoption of advanced pharmaceutical manufacturing technologies in the United States and increasing efforts from various pharmaceutical manufacturers to adopt novel production technologies are expected to drive regional market growth. In January 2024, Enzene Biosciences, a CDMO, launched its first manufacturing site in the United States. The manufacturing site is integrated with a patented EnzeneX continuous manufacturing technology platform, and this is expected to serve innovative pharma and biopharmaceutical companies for their customized manufacturing requirements. In December 2022, the US Pharmacopeia opened an advanced manufacturing technology lab in Richmond. This laboratory helped pharma manufacturers with advanced manufacturing technologies, including continuous pharma manufacturing, to accelerate their production capabilities. Thus, the increasing uptake of novel production technologies is projected to augment regional market growth.
- The United States is one of the top pharma outsourcing destinations for pharma companies, owing to the presence of a significant number of CROs, CMOs, and CDMOs. Thus, such pharmaceutical contract manufacturing market trends are projected to bolster manufacturing activities in the country, thereby supporting regional market growth. For instance, according to Bioplan’s 2022 Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production, the United States was one of the top outsourcing destinations for pharmaceutical and biopharmaceutical research and manufacturing, owing to the presence of several contract manufacturers in the country.
- Thus, the pharmaceutical manufacturing market is expected to grow significantly over the forecast period due to the above-mentioned factors.
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