The market of biologics encompasses pharmaceuticals derived from living cells or organisms, including proteins, antibodies, and gene therapies. In contrast to conventional medications created through chemical processes, biologics often possess greater complexity. They hold a pivotal role in addressing intricate diseases such as cancer, autoimmune disorders, and rare genetic conditions.
The global biologics contract manufacturing market was valued at US$ 13,467.6 Million in 2022 and is anticipated to reach US$ 29,034.2 Million by the end of 2030 with a CAGR of 10.1% from 2023 to 2030 (forecast period).
Biologics contract manufacturing pertains to the production of materials employed in medical imaging modalities such as X-rays, CT scans, MRI scans, and ultrasound. Contract agents, introduced through injection, ingestion, or inhalation, serve to enhance the visibility of internal bodily structures during imaging procedures.
The widely adopted recombinant DNA technique is leveraged to fabricate biological contract agents from living cells. These agents, comprised of proteins or antibodies, are meticulously designed to selectively target and adhere to specific regions within the body, thus elevating the precision of imaging outcomes.
The manufacturing process for biological contract agents encompasses a multi-step journey involving cell culture, purification, and formulation. The end product must adhere to stringent criteria of quality and purity, devoid of impurities and contaminants, to meet the exacting regulatory standards required for its integration into medical applications.
Increasing Prevalence of Chronic Diseases to Boost Biologics Contract Manufacturing Market
The biologics contract manufacturing market is currently experiencing a robust expansion, primarily driven by the increasing incidence of chronic diseases such as cancer, autoimmune disorders, and infectious diseases. Biologics, which are intricate molecules capable of targeting specific cells and molecules within the body, have found wide-ranging applications in treating a diverse spectrum of health conditions. These molecules play a pivotal role in addressing various ailments effectively.
In the domain of medical imaging techniques such as magnetic resonance imaging (MRI), computed tomography (CT), and ultrasound, biologic contract agents are utilized to enhance the visibility of specific body structures. These agents aid in making organs, blood vessels, and tissues more distinguishable, which in turn facilitates the identification and treatment of a multitude of disorders.
The increasing demand for biologic contract agents has prompted manufacturers to scale up their production capabilities. This has prompted the development of advanced manufacturing methodologies and technologies that enable the efficient large-scale production of high-quality biologic contract agents. The expansion of the market is further fueled by the rising adoption of targeted therapies and personalized medicine. The capacity to customize biologic contract agents to suit the unique requirements of individual patients results in more tailored and effective treatment strategies.
Several pivotal factors contribute to the thriving market for biologics contract manufacturing. These encompass the rising prevalence of chronic diseases, a growing desire for personalized medical solutions, and notable advancements in manufacturing processes. As these factors continue to stimulate innovation and foster demand, the market’s growth trajectory remains robust.
North America to Spearhead the Biologics Contract Manufacturing Market
North America is the fastest-growing segment in the biologics contract manufacturing market due to several factors, including:
The growing demand for biologics, attributed to their remarkable effectiveness in treating conditions like cancer, autoimmune disorders, and genetic diseases, has triggered substantial growth within the biologics contract manufacturing market. Recent advancements in technology, including the adoption of single-use technologies that enhance manufacturing efficiency and reduce the risk of contamination, have significantly shaped the landscape of this industry. These developments have contributed to an increased trend of outsourcing biologics production to contract manufacturing organizations (CMOs), providing pharmaceutical companies with numerous advantages.
By partnering with CMOs, pharmaceutical firms can circumvent the capital and operational expenditures associated with establishing and maintaining in-house manufacturing facilities. This outsourcing approach often translates to significant cost savings. Moreover, CMOs equipped with specialized expertise in biologics manufacturing can offer pharmaceutical companies a competitive edge in navigating the complex regulatory environment, potentially expediting the introduction of their therapeutic products to the market.
The decision to outsource biologics manufacturing also introduces flexibility into production schedules, a critical factor for companies developing treatments for rare diseases or conditions characterized by uncertain demand patterns. This flexibility enables efficient production planning, reducing the risk of supply imbalances.
Given these compelling benefits, the biologics contract manufacturing market in North America is poised for sustained growth in the foreseeable future. The confluence of rising biologics demand, technological progress, and the strategic advantages offered by CMOs is expected to propel the expansion of this market in the years ahead.
Competitive Insights
Companies operating in the biologics contract manufacturing market have adopted several growth strategies to expand their market share and increase their revenue. Some of the prominent companies present in the biologics contract manufacturing market include Abzena Ltd, AGC Biologics, Ajinomoto Bio-Pharma, Avid Bioservices, Inc; Bionova Scientific Inc, BioXcellence (Boehringer Ingelheim Biopharmaceuticals GmbH), Curia Global, Inc., Fujiifilm Diosynth Biotechnologies, Genscript, KBI Biopharma, LakePharma, Lonza, Sanofi, STC.
The biologics manufacturing industry thrives by implementing a range of strategic approaches to maintain competitiveness. One such strategy involves cultivating partnerships and collaborations with other organizations, enabling the exchange of knowledge and resources to drive the development of new and improved products. An illustrative example is the collaboration between Sanofi and Lonza in 2020, where they jointly established a biologics production facility in Switzerland, leveraging Lonza’s expertise to enhance Sanofi’s manufacturing capacity.
Investing in research and development (R&D) is another pivotal strategy in this industry. Companies allocate resources to create novel products or enhance existing ones. In 2021, Roche’s launch of Evrysdi, a treatment for spinal muscular atrophy, exemplifies this strategy, expanding Roche’s biologics portfolio and strengthening its market presence.
Geographic expansion serves as another core strategy, with companies establishing new manufacturing facilities or acquiring existing ones in strategic locations to cater to local markets. Biogen’s planned $200 million investment in a new biologics production facility in Switzerland in 2021 exemplifies this approach, reinforcing the company’s footprint in Europe.
In conclusion, the biologics manufacturing sector’s success in a competitive landscape relies on continuous innovation and adaptability. To lead in this dynamic environment and enhance market share, businesses must deploy a diverse array of strategies, including partnerships, global expansion, mergers and acquisitions, and the ongoing development and launch of novel products.
