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Increasing outsourcing servicesin biopharmaceutical industry is expected to fuel the growth ofbiopharmaceutical contract manufacturing market
Key players operating in themarket are focusing on facility expansion in order to increase theirgeographical presence in the BiopharmaceuticalContract Manufacturing market. In January 2020, Celltrion Group, abiopharmaceutical company plans to build biopharmaceutical plant in China. Thenew plant is focusing on to carry out large scale contract manufacturingorganization for the Chinese market with a plant capacity of 120,000 liters,which will be the largest biopharmaceutical plant in the China.
Moreover, increasing adoption ofinorganic growth strategies such as merger and acquisition by key playersoperating in the market is expected to drive market growth over the forecastperiod. In January 2020, Cognate BioServices, a contract development andmanufacturing organization (CDMO) specialized in cell and cell-mediated genetherapy products has acquired the Cobra Biologics, a CDMO specialized inproviding development and manufacturing services for plasmid DNA and viralvector. With this acquisition Cognate BioServices deliver drug development andmanufacturing solutions to the cell and gene immunotherapy and regenerativemedicine industry around the world.
Contract manufacturingorganizations (CMOs) provide wide range of manufacturing services, whichinclude contract packaging, quality testing, and development service topharmaceutical and biotechnology industries. Biopharmaceutical companies preferCMOs due to complexity in manufacturing process of biomolecules, as theyconsists of different shape, size, and behavior with significantly complexprocess than pharmaceutical drugs. Contract manufacturing organizations provideservices from development of biologics to commercial scale production. Fewcompanies also provide cell line development, fermentation, processoptimization, and analytical characterization. Improved efficiency, weakproduct pipeline, and increasing price pressure is expected to favor the growthof biopharmaceutical contract manufacturing market in near future.
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In August 2019, Patheon mergedwith Royal DSM to form private company DPx, a Contract ManufacturingOrganization (CMO). The new company comprises of three businesses - finechemicals and API production, pharmaceutical services including contractmanufacturing and proprietary products and technologies falling under thebanner of life sciences acquired by Patheon in October 2012.
Furthermore, key playersoperating in the market are focusing on strategic partnership for expanding itscontract manufacturing facility. For instance in January 2020, IndaptaTherapeutics and Lonza, a biopharmaceutical company announced a strategicpartnership to advance a next-generation, off-the-shelf, allogeneicimmuno-oncology therapy. Under the terms of this partnership, Lonza willmanufacture Indapta’s off-the-shelf, allogeneic G-NK cell therapy under currentgood manufacturing practices (cGMP) for use in clinical studies. Similarly,Indapta will leverage Lonza’s process development capabilities and expertise toensure a robust, reproducible and scalable cGMP process. Process developmentand manufacturing will take place in Lonza's state-of-the-art cell and genetherapy manufacturing facility in Houston (TX), USA.
Reducing cost and focusing oncore strengths is expected to fuel the growth of biopharmaceutical contractmanufacturing market
Companies operating in the globalmarket are focusing on technological advancement such as use of ArtificialIntelligence in biologics manufacturing is anticipated to propel the marketgrowth over the forecast period. For instance in January 2020, iBioPharma Inc.,a biotechnology company entered into collaboration EdgePoint AI, a division ofMateon Therapeutics to use EdgePoint’s proprietary artificial intelligence(AI)/blockchain-driven vision system for pharmaceutical manufacturing whichknown as TrustPoint Fabric.
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It provides highest level ofcompliance to the pharmaceutical industry’s standards for data integrity andenhanced automation capabilities which are expected to lower operating costswhile improving quality for clients of iBio’s biologics contract developmentand manufacturing services.
Besides, existing companies areinvesting to increase its manufacturing capabilities. In October 2019,Mesoblast, an Australian-based regenerative medicine company and Lonza enteredinto an agreement for commercial manufacturing of Mesoblast’s allogeneic(off-the-shelf) cell therapy product candidate, remestemcel-L. The agreementenables Lonza to expand its Singapore cGMP facilities and also anticipates tointroduce new technologies and process improvements which are expected toresult in significant increase in its manufacturing yields and efficiencies.
The key players in operating inthe global biopharmaceutical contract manufacturing market include Lonza GroupLtd., ProBioGen AG, Boehringher Ingelheim, BIOMEVA GmbH, Celonic GmbH, Sandoz,Fujifilm Diosynth Biotechnology, and Rentschler Biotechnologie.
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