Asia Pacific Biopharmaceutical Contract Manufacturing Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Product ; Service, and Geography
Asia Pacific Biopharmaceutical Contract Manufacturing Market to 2027 - COVID-19 Impact Analysis Regional Analysis and Forecast by Product and Service. The biopharmaceutical contract manufacturing market in Asia Pacific is anticipated to reach US$ 4,997.
New York, May 19, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Asia Pacific Biopharmaceutical Contract Manufacturing Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Product ; Service, and Geography" - https://www.reportlinker.com/p05894514/?utm_source=GNW
46 Mn in 2027 from US$ 2,580.70 Mn in 2019. The market is projected to grow with a CAGR of 8.8% from 2020 to 2027.
The biopharmaceutical contract manufacturing market is growing primarily due to the increasing demand for biologics and increasing outsourcing by pharmaceutical companies in Asia Pacific.Increasing competition in the industry is likely to damage the growth of the market in the coming years.
Additionally, robust advancements in research and development activities, emerging markets, and consolidation in the pharmaceutical CMO industry are likely to increase the growth of the biopharmaceuticals contract manufacturing during the forecast period.
Contract manufacturing is the type of outsourcing where a company enters into an agreement or legal settlement with another manufacturing firm for products, parts, or components, which the company will then use in its production process to complete its product. Various biopharmaceutical companies manufacture antibodies, non-antibody scaffolds, recombinant proteins, fragments as well as DNA from different sources.
The contract manufacturing organization (CMO) offers numerous benefits to pharmaceutical companies, by reducing investments in facilities, drug development costs, which in turn improves net cash flow.Outsourcing is cheaper and increases the efficiency of manufacturing processes.
The rise of the CMOs was fueled by the increasing number of drug manufacturing failures.In the past, pharmaceutical companies had dedicated manufacturing facilities for innovative drugs in development.
However, to reduce the risk of overcapacities, the demand for manufacturing outsourcing has been rising continuously.
This new trend of outsourcing is resulting in many benefits to the CMOs in multiple Asian countries, such as Singapore, South Korea, India, and China.Many companies see growth opportunities in this sector.
For instance, Samsung Biologics, founded in 2011, with its massive mammalian cell capacity i.e., 360,000L, surpasses most established service providers. Singapore is also becoming a hot spot favored by many global companies considering outsourcing of bioprocessing. Wuxi Biologics has just started its operation of a new facility, which is the largest mammalian cell culture manufacturing facility that uses disposable bioreactors in the world. The facility uses 14x 2,000L and two 1,000L disposable bioreactors for late-phase clinical and commercial manufacturing. JHL Biotech’s Wuhan facility, which started operations in 2016, has a current capacity of ~10,000L and is also expanding. Furthermore, CMOs play crucial roles in providing additional capacities to mitigate the risk of supply shortages by offering additional sites for pharmaceutical companies with multisite supply strategies as well as backup capacities. For instance, some industry insiders in China, strongly believe that China can be a destination for this wave of outsourcing. According to BioPlan’s analyses of China’s biopharma facilities, over 90% of mid-scale and larger biopharmas are planning to expand their own facilities. For example, BeiGene, the company using Boehringer’s CMO services in Beijing, is also building a bio-manufacturing facility in Guangzhou. Thus, the above-mentioned factors are likely to boost the growth of the biopharmaceutical contract manufacturing market in Asia Pacific during the forecast period.
In 2019, the biologics segment held the largest market share in the biopharmaceutical contract manufacturing market in Asia Pacific.A significant boom has been witnessed in the contract manufacturing of biologics.
This can be attributed to difficulties in the production of a large-scale biologics in house.Moreover, the Beijing-based Autekbio, founded in 2011, was the first and one of the fully devoted CMOs to contract manufacturing of biologicals.
TaiMed Biologics Ibalizumab, the FDA-designated orphan drug, is manufactured by CMO WuXi PharmaTech. Hence, with the increasing demand for biologics, many companies are opting CMOs services to speed up the development process and lower production costs.
Considering the geographic and economical operations between Asian countries and China, the states are expected to witness the challenge of COVID-19.Due to this crisis, many contract manufacturers in India have restricted the production, which has affected its export revenues.
Additionally, COVID-19 may cause massive recalls of products resulting in massive problems for contract manufacturers in the region.
During the forecast period, the analytical and quality control segment estimated the highest CAGR in the market of 8.8% in 2019.CMOs provide a wide array of services ranging from cell cultivation to final product packaging. Increasing regulatory compliance, complex manufacturing process, and product integrity are driving the adoption of the services mentioned above offered by CMOs. Hence, the segment is anticipated to witness a significant growth during the forecast period.
Some of the significant secondary sources for biopharmaceutical contract manufacturing market included in the report are the World Health Organization (WHO) and the China Food and Drug Administration (CFDA).
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