The pharmaceutical contract development market is growing rapidly as companies seek to outsource their drug development activities to external service providers. This market has experienced a surge in demand due to the increasing complexity of drug development processes and higher costs associated with in-house operations.
According to a recent report, the global Pharmaceutical Contract Development Market is projected to reach USD 171.3 billion by 2026 from USD 120.6 billion in 2021, at a CAGR of 7.3% during the forecast period. Market growth is driven mainly by factors such as rising demand for generics, increasing investments in pharmaceutical R&D, and investments in advanced manufacturing technologies by CDMOs. The increasing demand for biological therapies, growing focus on specialty medicines, growth in the nuclear medicines sector, and advancements in cell and gene therapies are also expected to offer market growth opportunities in the coming years.
The pharmaceutical contract development market encompasses various types of services such as clinical trials, regulatory affairs, manufacturing and packaging, analytical and bioanalytical services, and drug delivery systems. The services offered by contract research organizations (CROs) help pharmaceutical companies reduce cost and time associated with drug development, thus enabling them to bring new and innovative drugs to the market at a faster rate.
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In addition, the increasing demand for generic drugs, which are cheaper than branded versions, has been driving the growth of the market. Moreover, the increasing prevalence of chronic diseases, such as cancer and cardiovascular diseases, has resulted in a greater demand for new and more effective drugs. This has led to more companies seeking the services of contract research organizations, as they can provide specialized services at a lower cost.
The pharmaceutical contract development market is expected to experience a compound annual growth rate of 7.3% over the next five years. This is due to the increasing demand for outsourcing services, as well as the introduction of novel drug delivery systems, such as nanotechnology and gene therapy. Furthermore, the rising number of clinical trials and the increasing demand for generic drugs are expected to fuel the growth of the market.
Overall, the pharmaceutical contract development market is expected to continue to experience significant growth in the coming years. Companies should take advantage of the current market conditions by partnering with CROs to outsource their drug development activities. Doing so will enable them to reduce costs and bring new drugs to market faster.
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- In 2021, Samsung BioLogics (South Korea) entered into a Development and Manufacturing Agreement with Kineta (US) for Anti-VISTA Antibody Immunotherapy
- In 2021, Lonza Group (Switzerland) entered into an agreement with Aruvant Science (US) to carry out process development (one-time investigational gene therapy—ARU-1801) for sickle-cell treatment in the US
- In 2020, Catalent (US) acquired Skeletal Theray Support (Belgium). Under this acquisition, Catalent manufactured clinical material for Bone Therapeutics’ drug, ALLOB, an allogeneic osteoblastic cell therapy product
- In 2020, Recipharm AB (Sweden) acquired Consort Medical (UK) Bespak division dealing with inhalation and other devices