In a groundbreaking development, the pharmaceutical market is witnessing a remarkable uptick in the adoption of small molecule drugs across a wide spectrum of therapeutic areas. This burgeoning trend is fueled by patent expirations and a notable surge in the utilization of the 505(b)(2) pathway for small molecule drugs. As per a research report titled – “The Global Pharmaceutical Contract Manufacturing market”.
The pharmaceutical companies and service providers benefit from the increasing tendency to delegate manufacturing to Contract Manufacturing Organizations (CMOs). Pharmaceutical companies can focus on their main abilities and rely on specialized CMOs to take care of the manufacturing process. As a result, this pattern is anticipated to increase the market portion of pharmaceutical manufacturing. The main objective of contract pharmaceutical manufacturing services is to primarily specialize in the production of Active Pharmaceutical Ingredients (API) and Finished Dosage Formulations (FDF).
The pharmaceutical CMOs market is anticipated to reach a CAGR of 6.9 per cent until 2032. Some of the factors driving the growth of this market include the surge in outsourcing, high adoption of small molecule drugs across diverse therapeutic areas, patent expiration and the increase in use of 505 (b)(2) pathway for small molecule drugs. Other factors include the growing population, surge in chronic diseases, and cardiovascular disorders and increase in healthcare spending. Furthermore, this industry is seeing increase in collaboration, mergers and acquisitions further bolstering its expansion.
Advanced technologies in API and FDF manufacturing, rising R&D expenditures, capacity and capability expansion in advanced Highly Potent APIs and Complex Molecules platforms are rendering significant opportunities for market growth. However, challenges such as pharmaceutical product contamination, pricing pressure, the need for highly skilled technicians, the increasing adoption of biologics in disease management, stringent regulatory policies, and environmental concerns are hindering the growth of the pharmaceutical contract manufacturing global market.