CDMO Research

Goals

To understand the CDMO market including market size, top players in the United States, how companies work with a CDMO and the types of companies, how deals are structured, and alternatives to CDMOs.

Early Findings

  • Contract development and manufacturing organizations (CDMOs) can also be referred to as contract manufacturing organizations (CMOs) are companies that provide pharmaceutical development and pharaceutical manufacturing services in the pharmaceutical and biologics industries on a contract basis. By outsourcing these roles to CDMOs, pharmaceutical and biologics companies are able to focus on drug discovery and marketing.
  • The CMO market is expected to reach $205.104 billion by 2021 with a compound annual growth rate of 10.28%.
  • The CDMO market is highly fragmented with over 600 international and local companies. At the same time, M&A activity within the industry has been on the rise at 12% per year since 2012. Of most interest are North American companies which are being acquired by European buyers, representing 43% of the M&A activity.
  • Locating the top CDMOs in the United States alone is difficult due to the market fragmentation and level of M&A activity. However, the top 4 with headquarters in the United States (as well as international headquarters) by market share are Lonza (6.4%), Catalent (2.7%), Patheon (2.2%), Recipharm (1.1%).
  • The main services offered by CDMOs can be divided into two segments: pharmaceutical and medical device.
  • Within the pharmaceutical segment, services include Active Pharmaceutical Ingredients (API) Manufacturing, Final Dose Formulation (FDF) Manufacturing, and packaging services.
  • Within the medical device segment, services include design outsourcing, device manufacturing, and final goods assembly.
  • The typical pricing models within the CDMO sector are per-batch, per-milestone, time-and-materials, and per-gram. These four models make up about 87% of contracts.

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