04 March 2020
The biopharmaceutical market's success can be attributed in large part to contract manufacturers. Some benefits provided by contract manufacturing organizations (CMOs) are reducing overall investment required to bring a new drug product to the market, allowing access to expensive technology, faster market entry of products and greater flexibility. This has led many large companies to outsource their manufacturing activities for the biopharmaceutical market.
With the ongoing growth of the biopharmaceutical industry, producers face many issues such as lack of expertise and sophisticated equipment when conducting in-house production. The development of biotechnology and the availability of external funding has contributed to the spurting of bio / pharma companies in the early stages. Such businesses are known as key CMO clients, because they lack the capacity to develop efficient production operations.
Breakthrough technological advances and advancements in bioprocessing have played a pivotal role in contract service providers' development by addressing issues such as high production costs and the need to turn over with every batch. Single-use bioprocessing systems are one of the most important technologies, as they help to reduce total costs of production and scale up. In addition, the rapid turnaround provided by single-use goods while limiting associated activities, such as changeover and cleaning validation, has largely supported CMO development.
Biopharma companies have relied on contract manufacturing organizations (CMOs) to provide resources and expertise as needed; in some cases, CMOs have produced much of the output of a business. Yet the current market structure presents biopharma with a shortage of CMO capability to produce biopharmaceuticals, especially in mammalian cell culture technology and new modalities, even as demand for outsourcing increases.
As of 2019, the global biopharmaceuticals market’s size was estimated at ~$232 billion. It is expected to grow at a CAGR of ~7% during the course of the next 5 years. Biopharmaceuticals have emerged as some of the highest revenue grossers across the globe – Humira, Avastin, and Opdivo are some of the most well-known examples. These established drugs have maintained their growth since commercialization. Avastin and Humira have been growing 9.5% and 8.2%, since last decade. Drugs such as Opdivo, which was first commercialized in the year 2017, witnessed strong market uptake. Such drugs have changed the fortune of the many companies, such as AbbVie, Bristol-Myers Squibb, and Roche to name a few.
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