Market Trends of Small Molecules Contract Development And Manufacturing Organization Industry
Oncology Segment is Expected to Witness a Major Share in the Market Studied over the Forecast Period
Small molecule drugs have been widely used in cancer treatment procedures for decades for their various benefits, such as high efficacy and selectivity, convenience, ability to penetrate cancerous cells and deliver medication, and wide range of target receptors. Some of the most common small molecule drug compounds used as cancer therapeutics include kinase inhibitors, epigenetic regulatory proteins, DNA damage repair enzymes, and proteasomes.
The increasing prevalence of cancer is fueling the demand for advanced and effective therapeutics, leading to new investments by companies and other stakeholders, like governments, for the identification, testing, and development of novel cancer therapeutics. For instance, according to the Canadian Cancer Society's report of 2022, an estimated 233,900 people were diagnosed with cancer in 2022. Similarly, according to the Cancer Australia data published in May 2022, approximately 14,529 lung cancer cases were diagnosed in Australia in the same year, which is up from 13,810 lung cancer cases in 2021. Thus, the growing burden of cancer is expected to create a demand for drug development and manufacturing services, which is likely to contribute to the segment's growth.
Moreover, strategic activities by market players, such as expansion of services, collaboration, and signing agreements with other companies, are expected to boost the market's growth. For instance, in March 2023, CatSci Ltd partnered with AGC Pharma Chemicals, a global small molecule CDMO. This enables CatSci's customers to harness AGC's expertise in GMP manufacturing from kilos to tonnes to support clinical phase projects, including cancer and infectious diseases. Similarly, in April 2022, Societal CDMO Inc. announced that it was awarded a new manufacturing and packaging task order agreement by the National Cancer Institute's Division of Cancer Treatment and Diagnosis (DCTD).
Hence, the growing burden of cancer, increasing investment for the development of small molecules cancer drugs, and strategic collaboration by the market players are expected to boost the segment's growth.
North America is Expected to Hold a Significant Market Share Over the Forecast Period
In North America, the small molecules CDMO market is expected to grow due to factors such as established research facilities and high investment in R&D. Furthermore, the strong foothold of key market players and rising grants by the National Institute of Health for developing novel therapeutics in the country are also contributing to the market's growth.
The increasing research and development and strong pipeline of small molecule drugs are expected to boost the demand for CDMO services, contributing to the market's growth. For instance, in January 2022, Sanofi signed a research collaboration and license agreement with Exscientia for the development of up to 15 novel small molecule candidates in the oncology and immunology field. Furthermore, under the agreement, Exscientia and Sanofi work together to identify and choose target projects by utilizing Exscientia's platform for personalized medicine.
The growing trend of outsourcing among pharmaceutical companies is expected to drive the market's growth during the forecast period. For instance, in March 2022, Acanthus Research Inc. announced the launch of Acanthus Pharma Services Inc., a rapidly expanding CDMO organization focusing on providing services to the pharmaceutical and biotechnology industry. The company provides organic synthesis services such as specialty chemicals and organic chemistry services. Similarly, in October 2023, Ampio Pharmaceuticals Inc. announced that it selected Ascendia Pharmaceuticals Inc. to provide services to support the clinical development of OA-201, a novel therapeutic for the treatment of symptomatic osteoarthritis pain.
Hence, growing R&D investment for the development of small molecules and strategic activities by the market players is expected to boost the market over the forecast period.
Small Molecules Contract Development and Manufacturing Organization Market Report Snapshots
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