CDMO Leaders Unite for Turn-key Drug Production

1. CDMOs are increasingly important in the pharmaceutical supply chain, offering specialized expertise, accelerated timelines, cost efficiency, and risk mitigation in early-phase drug product development and manufacturing.
2. Strategic partnerships are crucial: MAHs and CDMOs are forming long-term partnerships to confront technology and cost challenges, especially in advanced therapies.
3. CDMOs are expanding their capabilities: They are becoming end-to-end service providers, offering a wide range of services across the value chain, including formulation development, analytical method development, scalable manufacturing, and packaging.
4. Market consolidation is ongoing: The CDMO market is expected to grow at a CAGR of 6.74% from 2024 to 2029, with the top five companies set to have around 40% of the market by 2030.
5. Technology innovation is key: CDMOs are investing in new manufacturing capabilities, such as viral vectors, cell manipulation, and lipid-based formulations, to support the growth of novel modalities like cell therapies, gene therapies, and mRNA therapies.
6. CDMOs are becoming technology leaders: They are acquiring assets to add new capabilities, investing in technology leadership, and building capacity and economies of scale in specific manufacturing types or dosage forms.
7. Three types of CDMOs will emerge by 2030: Scale players, focused businesses, and specialized CDMOs, each with distinct strategies and strengths.