BioPharm International - May 2021

BioPharm - Partnerships for Outsourcing - May 2021

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4 BioPharm International eBook May 2021 CDMO Landscape Seeing Changes as Consolidation Continues The expected growth of the global bio/pharmaceutical market is pushing for the continued evolution of the CDMO arena. C onsolidation in the contract manufactur- ing landscape in recent years has resulted in service providers that now have varied scientific, technical, and technology exper- tise. The ability to provide real-time data analytics is in high demand, and there is a need for inno- vative f low filtration technologies, factors that seem to be driving some of this consolidation. The contract development and manufacturing orga- nization (CDMO) market is projected to grow to nearly $158 billion in 2025 at a compound annual growth rate of 6.9%, a rate that outpaces global pharmaceutical market growth. This growth is attributed to several primary fac- tors, including a growing global population and a greater willingness among bio/pharmaceutical companies to out- source manufacturing (1). NEAR TERM IMPACT Mergers and acquisitions (M&A) in the CDMO/contract manufacturing organization (CMO) space have resulted in the consolidation of regional/specialized providers that are moving toward the development of broader, more global providers with more comprehensive capabilities to offer, notes Mike Grippo, senior vice-president, Strateg y & Corporate Development, Catalent. "In some cases, M&A has enabled companies to expand their reach beyond a spe- cif ic geography, whereas in other cases, companies have leveraged M& A to provide additional steps along the development and manufacturing value chain, enabling a 'one-stop shop' of sorts for developers," he says. Grippo further points out that there has also been an active trend of consolidation as a means to enter new, fast grow- ing markets, such as cell and gene therapy. "M&A remains FELIZA MIRASOL Partnerships for Outsourcing Manufacturing FRESHIDEA - STOCK.ADOBE.COM

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