Contract Development Manufacturing Organization Market Procurement Intelligence, Supplier Intelligence & Ranking, Pricing & Cost Structure Intelligence 2020 - 2025
Category Overview
“The CDMO market is poised to grow at 7.3 % CAGR between 2020 and 2025 with the potential to reach a revenue of USD 61 billion in 2025.”
The global contract development manufacturing organization
market is expected to witness sustainable growth (CAGR of 7.3%) from 2020 to
2025 with innovative APIs driving market growth. The COVID pandemic has had
several positive as well as negative impacts on the industry. The demand for
investigational treatments and ICU medications, to aid medical centers tide
over the pandemic, has substantially increased resulting in increased demand
for APIs. At the same time, scarcity of APIs, especially in countries that
procure them from China, has led to supply chain disruptions.
Requirements for accelerated time
to market, increasing operational flexibility, and GDUFA guidelines
streamlining GMP of Asian countries to maintain parity with manufacturing
practices of the USA is driving the need for pharmaceutical companies to
outsource its manufacturing needs to CDMOs.
Supplier Intelligence
“The global merchant API market is fragmented with small scale CROs having limited contract manufacturing capabilities operating regionally, affecting the market share of larger CDMOs.”
The API manufacturing market for contract development manufacturing
organization is fragmented. The top 8 players in the industry barely make up
41% of the share. Remaining 59% approvals are supported by CDMOs with less than
3% market share.
Several large-scale contract development
manufacturing organizations are
leading the API manufacturing marketplace. Some of the major players are
Pantheon, Lonza, Siegfried. The presence of several API manufacturers, both
contractual, like CDMOs, as well as pharmaceutical companies with in-house
manufacturing capabilities, limits the bargaining power of suppliers. At the
same time, this also increases competitive rivalry between the market players.
Pricing
and Cost Intelligence
“Batch manufacturing activities are the largest component and
makeup approximately around 65% of the overall cost for manufacturing APIs”
The cost heads for CDMOs manufacturing can be segregated into five major
categories. There are project planning and management costs, drug product
analytical development, batch manufacturing activities, supplier management,
and operational cost. Of these, batch manufacturing practices occupy 65% of the
overall cost. For batch manufacturing, raw material costs are the largest cost
head, occupying 38% of the total cost of batch manufacturing activities.
View report summary: Contract
Development Manufacturing Organization Market Procurement Intelligence
In addition
to these costs, there are several costs that gets added up to the lifetime
cost. Three of the major cost heads are the cost of quality control, custom
clearance cost, and insurance cost. In fact, the cost of quality control
supersedes the other manufacturing costs.
There
are several pricing models prevalent in the industry. However, value-based
pricing model has gained prominence recently. However, there are significant
cost transparency issues with less room for negotiation margins. However, this
model of pricing does provide high value to their customer.
Sourcing
Intelligence
“The supply chain disruptions caused by the pandemic have forced
companies to think about diversifying and venturing outside China to set up
their manufacturing bases.”
For API manufacturers, China has been the largest exporter of
their raw materials.
However, the
COVID pandemic has resulted in disrupted supply chains for several contract
development manufacturing organizations. This has led API manufacturers to
realize the need for diverse sourcing options. Singapore and Belgium are thus
becoming two other hotspots from where API manufacturers are sourcing their
requirements.
Check out the featured Addon Services offered with Contract Development Manufacturing Organization Market Procurement Intelligence Report:
About us:
A smart and effective supply chain is
essential for growth in any organization. Pipeline division at Grand View
Research provides detailed insights on every aspect of the supply chain which
helps in efficient procurement decisions.
Our services include (not limited to):
·
Market Intelligence involving - market size and forecast, growth
factors, and driving trends
·
Price and Cost Intelligence - pricing models adopted for the category,
the total cost of ownership
·
Supplier Intelligence - rich insight on supplier landscape, and
identifies suppliers who are dominating, emerging, lounging, and specializing
·
Sourcing / Procurement Intelligence - best practices followed in the
industry, identifying standard KPIs and SLAs, peer analysis, negotiation
strategies to be utilized with the suppliers, and best-suited countries for
sourcing to minimize supply chain disruption
Browse More Reports
Our market/procurement Intelligence reports
include in-depth and actionable insights that help clients in understanding the
different aspects of the supply chain and take more effective decisions.
Find More information @ https://www.grandviewresearch.com/pipeline
Contact Information:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
Comments
Post a Comment