Small Molecules Innovator Contract Development And Manufacturing Organization Market Size (2024 - 2029)

Small Molecules Innovator Contract Development And Manufacturing Organization Market Analysis

The Small Molecules Innovator Contract Development And Manufacturing Organization Market size is estimated at USD 48.40 billion in 2024, and is expected to reach USD 69.90 billion by 2029, growing at a CAGR of 6.60% during the forecast period (2024-2029).

The market is driven by increasing demand for small molecule drugs, the growing pipeline of small molecule drugs, the increasing burden of chronic diseases, and rising pharmaceutical R&D investments. A robust pipeline of small molecule drugs means that pharmaceutical and biotech companies have more compounds in various stages of development. This creates a greater need for specialized services CDMOs provide, including formulation development, process optimization, and manufacturing. For instance, according to the Bio Industry Analysis Report published in February 2023, 47 small molecule new chemical entities (NCEs) were in the clinical pipeline as of 2022. Traditional systemic small-molecule antibiotics account for 97%, and topical small molecules account for 3% of the small-molecule pipeline NCEs.

Similarly, according to Clinicaltrials.gov, as of March 2024, there were 64 small molecules of drugs in phase II trials and 3 in the phase III trials. Hence, the growing pipeline often spans various therapeutic areas, addressing multiple medical conditions. This diversification in drug development increases the demand for CDMOs with expertise in different fields, further stimulating the market.

The substantial investment by pharmaceutical companies in research and development (R&D) of small molecule drugs has led to an increased demand for the services provided by contract development and manufacturing organizations (CDMOs). These organizations require specialized expertise and infrastructure to bring their drug candidates from the discovery phase through clinical trials. For instance, in September 2022, Cambrex completed the initial stage of its USD 30 million investment in its High Point, North Carolina facility for manufacturing small molecule active pharmaceutical ingredients (APIs). Furthermore, strategic collaboration for small molecule drug development is expected to drive market growth over the projected period. For instance, in January 2022, Sanofi and Exscientia entered a strategic research alliance and licensing pact for the purpose of developing up to 15 novel small molecule candidates across oncology and immunology, leveraging Exscientia’s AI-driven platform utilizing actual patient samples.

Hence, the strong pipeline for small molecule drugs, increasing investment in developing small molecules, and key adoption of key strategies by market participants are expected to drive segment growth. However, stringent government regulations and compliance issues with outsourcing are anticipated to restrain the market growth over the projected period.

Small Molecules Innovator Contract Development And Manufacturing Organization Industry Segmentation

As per the scope of the report, the contract development and manufacturing organization (CDMO) market for small molecule innovators refers to companies that provide services to pharmaceutical and biotechnology companies for the development and manufacturing of small molecule drugs. These services may include drug formulation, process development, analytical testing, and manufacturing of clinical trial supplies.

The small molecule contract development and manufacturing organization market is segmented by product, stage type, end user, therapeutic area, and geography. By product, the market is segmented into small molecule API and small molecule drug products. By small molecule drug products, the market is further segmented into oral solid dose, semi-solid dose, liquid dose, and others. By stage type, the market is segmented by preclinical, clinical, and commercial. By end user, the market is segmented by pharmaceutical and biotechnology. By therapeutic area, the market is segmented into cardiovascular disease, oncology, respiratory disorders, neurology, metabolic disorders, infectious disease, and others). By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD) for the above segments.