CONTRACT DEVELOPMENT AND MANUFACTURING ORGANISATIONS M&A MARKET
The global Contract Development and Manufacturing Organisation (CDMO) market, which helps Pharmaceutical and MedTech companies efficiently develop, manufacture, and bring products to market, is valued at $230 billion in 2024, and is anticipated to grow at a CAGR of 8.5% to reach $358 billion by 2029 [1][2].
Key factors propelling the global Pharmaceutical CDMO market:
- Agile Manufacturing Practices: CDMOs are adopting continuous manufacturing practices, offering flexible and cost-effective solutions for Pharma clients that follow the traditional batch manufacturing model.
- Complex and Personalised Medicines: The shift towards personalised medicines is increasing outsourcing to CDMOs who have specialised development and manufacturing capabilities in place.
- End-to-End Services: CDMOs offering comprehensive support from early-stage development to manufacturing across various modalities helps streamline processes and reduce time-to-market for new therapies.
- Regulatory Expertise: CDMOs help Pharma companies navigate complex regulatory frameworks, reducing compliance risks, costs, and increasing reliance on CDMO partners.
Principal forces driving the global Medical Technology CDMO market:
- Outsourcing by OEMs: MedTech OEMs are increasingly outsourcing development and manufacturing to CDMOs to focus on core competencies, improving efficiency and providing upfront capital savings.
- Regionalisation of Supply Chains: Pressures for OEMs to regionalise supply chains to limit disruptions and reduce their carbon footprint is increasing the demand for CDMOs with a local presence.
- Technological Advancements: Many CDMOs have specialised technological capabilities that OEMs rely on to develop innovative solutions, supporting outsourced spending across high growth therapy areas.
- Regulatory Compliance: Strict EU and UK regulations are driving OEMs to outsource to CDMOs that can navigate complex regulatory environments efficiently, reducing costs and compliance risks.
To learn more about the key M&A trends taking shape this year in the CDMO space, read our latest paper.
If you would like to know more about the CDMO M&A landscape after reading this paper, or have any other questions on the wider healthcare space, please do get in touch with Al-Munther Sultan. We would be delighted to discuss this report with you, including any implications these current and longer-term market themes may have on your business and overall shareholder objectives.
Source:
[1] Grand View Research - Pharmaceutical CDMO Market Size & Trends
[2] MarketsandMarkets - Medical Device Contract Manufacturing Market
