Market Dynamics

Increasing government spending by the government on development of healthcare infrastructure, rise in number of clinical trials across the globe, and players approach towards outsourcing the activities are major factor expected to drive the growth of global market. In addition, increasing government focus on development of biologics medicines in order to enhance the treatment of various diseases

According to Avalere Health for the Biosimilars Council shows that 1.2 million U.S. patients could gain access to biologics by 2025 as the result of biosimilar availability. More than 200 biologic products are now approved for use in the United States. Sales of these biologics have increased 65 percent since 2011, reaching more than $105 billion in 2016, as a variety of new biologic treatments for autoimmune disorders, immunology and cancer are entering the market.

Moreover following factors are expected to augment the growth of target market.

In 2020, Ology Bioservices Inc., a biologics contract development and manufacturing organization (CDMO) signed a contract to advance developmen cocktail of anti-botulinum neurotoxin monoclonal antibodies (mAb) by the Department of Defense (DOD). The contract was worth US$ 46.3 Mn and is expected to help the company to enhance the business presence.

In 2020, WuXi Biologics a global open-access biologics technology platform company offering end-to-end solutions for biologics discovery, development and manufacturing entered into a collaboration with Vir Biotechnology, Inc. for the development & manufacturing of human monoclonal antibodies for the potential treatment of COVID-19. This is expected to help the company to enhance the business.

In 2020, the company finalized the acquisition with Bayer Company for a drug product manufacturing plant in Leverkusen, Germany. This acquisition is expected to help the company to enhance the business presence.

In 2019, WuXi Vaccines a subsidiary of WuXi Biologics that is engaged in human vaccine Contract Development and Manufacturing Organization (CDMO) business invested US$ 240 Mn for the manufacturing of new vaccine facility in Ireland. This investment follows the 20-year manufacturing Letter of Intent (LOI) signed by WuXi Vaccines earlier this year.

In 2019, Samsung BioLogics signed a Contract Development Organization (CDO) contract for immunochemotherapy with GI Innovation. This is expected to help the company to enhance the product portfolio and increase the revenue share.

Rising number of patients suffering from chronic diseases, increasing in clinical testing and developing regulatory scenario in emerging economies are among other factors expected to boost the growth of target market.

However, factors such as high cost associated to R&D and issues related to intellectual property rights are expected to hamper the growth of global contract development service market. In addition, stringent government regulation and lack of advanced infrastructure in developing countries are factors expected to challenge the growth of target market.

Increasing biologics R&D activities by major players and growing product pipelines are factors expected to create new opportunities for players operating in the target market over the forecast period. In addition, high investment by major players and increased spending on infrastructure development is expected to revenue support the growth of target market.

Segment Analysis by Region

The market in Asia Pacific is expected to witness faster growth in the target market due to developing healthcare sector. Government is spending high on infrastructure development with the focus to increase the R&D capabilities. With the availability of favorable business policies in the region, there are emergences of small and mid-size enterprises.

 Competitive Landscape                                                                                 

The global market is high highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.

Report coverage

Contract Development Service Market Segment Analysis, 2019

The global market is segmented into source, product service, product and disease. The source segment is bifurcated into Microbial, Mammalian, and Others. Among the source segment the mammalian segment is expected to account for major revenue share due to increasing use of mammalian cells for protein expression.

The disease segment is divided into oncology, immunological disorders, cardiovascular disorders, hematological disorders, and others. Among the disease segment, the oncology segment is expected to account for major revenue share due to increasing R&D activities and development of novel products.

The players profiled in the report are Abzena Ltd., Fujifilm Diosynth Biotechnologies, KBI Biopharma, AGC Biologics, SE Thermo Fisher, LakePharma, Genscript Biotech Corporation, Bionova Scientific, WuXi Biologics, Boehringer Ingelheim BioXcellence, and STC Biologics, Inc.

Market Segmentation

Market By Source

Microbial

Mammalian

Others

Market By Product Service

Cell Line Development

Process Development

• Upstream
• Downstream

Market By Product

MABs

Recombinant proteins

Others

Market By Diseases

Oncology

Immunological disorders

Cardiovascular disorders

Hematological disorders

Others

Market By Region

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa