Oral Solid Dosage Contract Manufacturing Market

Global Market Study on Oral Solid Dosage Contract Manufacturing: Pharma / Biotech Companies to Be Major End Users of Contract Manufacturing

  • February-2021
  • PMRREP25768
  • 277 Pages
  • Healthcare
  • PPT, PDF, WORD, EXCEL

About the Report

Big pharmaceutical companies are facing escalating research costs of new chemical entities. In order to reduce these costs, companies are now focusing on outsourcing primary (API) and secondary (formulation) manufacturing. Outsourcing of secondary manufacturing of branded products leads to approximately 40% to 60% cost saving to innovator companies. Other than cost-saving, innovator companies are also looking to scale-up operations, flexibility, and diversity. 

There has been considerable rise in demand for oral solid dosage contract manufacturing as a result of increasing efforts to reduce costs. On the other hand, increasing focus of CMOs to integrate themselves into the value chain of pharmaceutical companies is also accelerating demand for oral solid dosage contract manufacturing. CMOs are building dedicated facilities or capacities for pharma companies, who prefer not to build it themselves.

  • For instance, in October 2020, Lonza declared a US$ 93 Mn investment in its Capsules and Health Ingredients (CHI) Division. The CHI division is a dosage form supply partner to the health nutrition and the biopharma industry. The investment is carried out to help the company grow its overall production capacity of capsules within CHI's Capsugel® portfolio.

In its new study, market research and consulting firm Persistence Market Research offers insights about key factors driving demand for oral solid dosage contract manufacturing. The report tracks global trends of oral solid dosage contract manufacturing in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the healthcare industry in general, and on oral solid dosage contract manufacturing in particular.

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Companies

  • AbbVie Inc.
  • Thermo Fisher Scientific Inc. (Patheon N.V.)
  • Lonza
  • Catalent Inc.
  • Alcami Corporation
  • Halo Pharmaceutical Inc.
  • CordenPharma International
  • Arnet Pharmaceuticals
  • Jubilant Life Sciences
  • Pfizer Inc.
  • Piramal EnterprisesLtd
  • Metrics Contract Services
  • GENVION Corporation
  • GlaxoSmithKline plc.
  • CMIC HOLDINGS Co., LTD.
  • Tower Laboratories Ltd.
  • PNP Pharmaceuticals Inc.
  • Confab Laboratories Inc.
  • Wockhardt Ltd.
  • Pharma Tech Industries

Historical Vs Future Market Outlook

Previous CMO business models were based on selling and production. However, current the CMO industry is experiencing major transformation in business models, which reflects the dynamics of the pharma industry such as big pharma companies’ emphasis on cost reduction, better differentiation from peers to reduce price competition, etc.

Contract manufacturing organizations are now forming their strategies according to pharmaceutical industry conditions and assumptions such as expected growth in unit volumes and rise in retain drug prices; pharma companies have stopped investing in internal capacity and are embrace outsourcing.

Additionally, previous one-off manufacturing activity is changing to offer one-stop-shop services or transforming to CDMO, which is beneficial to both, pharma customers and CDMOs. These companies are helping move products quickly and cost-effectively from clinical to commercial points. Thus, these drastic changes in the business models adopted by CMOs or CDMOs are expected to yield prospects for oral solid dosage contract manufacturing. 

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According to Persistence Market Research’s analysis, the oral solid dosage contract manufacturing market expanded at 4.5% CAGR from 2015 and 2019.

There is a notable adverse impact on the biopharmaceutical industry, and the healthcare industry as a whole. There are several long-term and short-term impacts caused by the COVID-19 crisis. Drop is sales can be attributed to shortage of manpower and increasing focus of manufacturers to invest in COVID-19 product development. In addition to this, supply chain interruption of raw materials and economic impact of the pandemic on small- and medium-sized enterprises are also factors that have had a negative impact on the market. However, with the emergence of vaccines and a positive changing scenario with the opening up of economies, the oral solid dosage contract manufacturing market is predicted to experience substantial growth during the forecast period. Persistence Market Research expects the market to progress at close to 6% CAGR through 2030.

Market Research Methodology - Perfected through Years of Diligence

A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.

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Will Growing Demand for Novel Therapeutics Fuel Pharmaceutical Solid Dosage Manufacturing?

Rise in life-threatening viral and chronic diseases all over the world is leading to surge in demand for novel therapeutics in order to prevent and cure the affected population. Pharmaceutical products are preventative medicines or therapeutics, derived from metabolites naturally present in living organisms. Increasing consumption of pharmaceutical drugs by the patient population of several diseases creates huge demand for large-scale manufacturing of novel therapeutics.

Thus, rise in demand for large-scale manufacturing is further leading to increase in outsourcing of contract manufacturing by key pharmaceutical companies. Hence, it can be concluded that, growing demand for novel therapeutics will fuel demand for oral solid dosage contract manufacturing. Moreover, increasing economic prosperity and health consciousness is also expected to aid market expansion over the coming years.

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How will Setting Up of New Pharmaceutical Contract Manufacturing Facilities Impact the Market?

Pharmaceutical contract manufacturing companies have witnessed tremendous growth, primarily coming from increasing demand for drug manufacturing through outsourcing by pharmaceutical companies. Manufacturing of solid drugs has witnessed an upsurge over the years, globally, and consequently, fueled demand for pharmaceutical contract manufacturing services.

Due to this rise in demand, contract manufacturing companies are increasingly focusing on expansion. Companies, particularly from the Asia Pacific region such as China, India, and Japan, are investing heavily in setting up new contract manufacturing hubs. In order to emphasize the speed of pharmaceutical contract manufacturing to meet global demand, and availability of lower labor and production costs, key companies prefer to set up new manufacturing plants in this region.

  • For instance, in July, 2020 CMIC HOLDINGS Co., Ltd. established a new contract manufacturing facility in Japan CMIC BIO Co., Ltd., to provide contract development and manufacturing services for pharmaceutical market players in Asia and out of Asian countries such as Europe and the U.S.

What Opportunities May Emerge as a Result of Market Consolidation Activities?

In the last decade, the CMO industry has seen a number of mergers and acquisitions. For instance, in July 2017, Lonza completed the acquisition of Capsugel LLC, and become a leading integrated service provider to pharmaceutical companies.

Many companies have grown through the acquisition of manufacturing plants that are no longer strategic to big pharmaceutical companies. For instance, in 2015, Fareva – France-based CMO acquired Excella GmbH – a former API manufacturing plant of Merck.

Despite of these developments, the market is extremely fragmented and has a majority of small CMOs. Thus, there is no established market leader in pharmaceutical solid dose contract manufacturing, and even leading CMOs have little share in the global market. This provides significant opportunity for consolidation, which can create aid organizations with better operating margins and high potential for faster organic growth.

Furthermore, consolidation is also expected to provide opportunity for pharma companies to get all their formulation- or drug development-related activities at a one-stop-shop. This can meet the needs for entire process outsourcing, and pharma companies are also looking for such CMOs so that they have to deal with fewer outsourcing partners.

oral-solid-dosage-contract-manufacturing-market

Country-wise Insights

Will the U.S. Continue to be a Major Market for Oral Solid Dosage Contract Manufacturing?

Persistence Market Research has predicted the U.S. to be a major market for oral solid dosage contract manufacturing throughout the forecast period. Stricter regulations by USFDA for the development and manufacturing of products promises superior quality products by CMOs.  Moreover, growing emphasis on drug discovery is leading a large number of pharmaceutical companies to opt for outsourcing.  According to a report published by the Pharmaceutical Research and Manufacturers of America (PhRMA) on Biopharmaceutical Industry-sponsored Clinical Trials, in April 2019, a total of 4,516 active clinical trials and 920,173 were estimated for overall US enrollment.

Thus, continuous developments in the pharmaceutical sector with major focus on drug development leads to an increased number of pharmaceutical companies reclining toward CMOs in the country.

Will Complex Regulatory and Legal Challenges in Brazil Limit Market Scope?

Although appealing, interactions with Latin American country’s regulatory agencies such as ANVISA and COFEPRIS is the biggest challenge, as foreign companies are often baffled by the bureaucratic approach of legal systems. Latin America has one of the most complex taxation framework. According to the Organization for Economic Cooperation and Development (OECD), Brazil shows the highest number of days needed for opening a company. Although taxes required to be paid in Brazil are lower than other OECD countries, time required for their circulation is much more, which is expected to inhibit foreign investment in the country.

Why Does India Represent a Bright Future for Oral Solid Dosage Contract Manufacturing?

Indian companies have channeled greater focus on leveraging their strengths on contract research and manufacturing. Contract manufacturing is a tough segment of the domestic market. Indian firms have several advantages in comparison to Western rivals. Through reverse engineering, expertise gained in manufacturing generics has helped some companies restructure the process for getting manufacturing high and running. Costs in the country are very competitive, at only two-fifth of those incurred in setting up and running a new manufacturing facility in the West.

What Makes Mexico a Highly Lucrative Market for Oral Solid Dosage Contract Manufacturing?

Geographical proximity to the U.S. makes third-party manufacturers situated in countries such as Mexico the best choice for U.S. companies to outsource their manufacturing operations. Low labor cost and experienced resources are turning Latin America into an attractive region for contract manufacturing services for manufacturers in counties such as the U.S. Additionally, change in Mexican trade policies has opened up borders for foreign investors, and Mexico has become a global manufacturing base with strong connection to U.S. consumers.

Why is China a highly Attractive Market for Oral Solid Dosage Contract Manufacturing?

Outsourcing of pharmaceutical manufacturing is developing most quickly in Asia. Chinese CMOs have emerged as ideal outsourcing partners for a variety of reasons - improvement in country’s infrastructure, improved regulatory oversight and adherence to CGMP standards, skilled Chinese workforce, and cost containment. These factors make China a highly attractive market for oral solid dosage contract manufacturing purposes.

Category-wise Insights

Why are Tablets Most Preferred?

The tablets segment dominates the market in terms of revenue, and this trend is projected to continue over the forecast period as well. According to Persistence Market Research analysis, the segment will account for more than half of the market share through 2030.

Increasing demand for tablets as compared to capsules and powder is the primary factor contributing toward this high share across regions.

Why Do Small and Medium Pharma / Biotech Companies Hold More than 40% Market Share?

Limited availability of resources and increased focus on reducing operational costs and cost incurred on R&D are key reasons for which small and medium pharma or biotech companies opt for outsourcing. As such, these companies dominate the end user segment with more than 40% market share.

Competitive Landscape

Leading players in the oral solid dosage contract manufacturing space are focusing on geographical expansion to increase revenue, and have added new repair and service centers in emerging countries through the acquisition of local players.

  • For instance, in December 2020, Piramal Enterprises Ltd.’s pharma solutions business, a leading Contract Development and Manufacturing Organization (CDMO), announced its plan to expand its facility in Michigan with new capabilities and additional capacity for the development and manufacturing of active pharmaceutical ingredients (APIs).

In addition, some companies are aiming to expand their manufacturing facilities by creating new contract manufacturing hubs. On the other hand, few players are focused on modifying and developing a strong service portfolio through strategic business partnerships with pharmaceutical organizations.

  • For instance, in June 2020, CMIC HOLDINGS Co., Ltd. announced that it has entered into a partnership agreement with Yamanashi Prefecture, to build a new epidemic prevention system in the prefecture.

Some of the leading companies operating in market are:

  • Abbvie Inc.
  • ThermoFisher Scientific Inc. (Patheon N.V.)
  • Pfizer Inc.
  • Lonza Group AG
  • Catalent Inc.
  • Jubilant Pharmova
  • Piramal Enterprises Ltd.
  • Wockhardt Ltd.
  • CMIC HOLDINGS Co., LTD.
  • Mayne Pharma (Metrics Contract Services)
  • Alcami Corporation
  • Cambrex Corporation (Halo Pharma)
  • CordenPharma International
  • GENVION Corporation
  • Arnet Pharmaceuticals
  • Pharma Tech Industries
  • Tower Laboratories Ltd.
  • PNP Pharmaceuticals Inc.
  • Confab Laboratories Inc.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

USD Million for Value

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Poland
  • Russia
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • China
  • Japan
  • South Korea
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key Segments Covered

  • Product
  • Release Mechanism
  • End User
  • Region

Key Companies Profiled

  • Abbvie Inc.
  • ThermoFisher Scientific Inc. (Patheon N.V.)
  • Pfizer Inc.
  • Lonza Group AG
  • Catalent Inc.
  • Jubilant Pharmova
  • Piramal Enterprises Ltd.
  • Wockhardt Ltd.
  • CMIC HOLDINGS Co., LTD.
  • Mayne Pharma (Metrics Contract Services)
  • Alcami Corporation
  • Cambrex Corporation (Halo Pharma)
  • CordenPharma International
  • GENVION Corporation
  • Arnet Pharmaceuticals
  • Pharma Tech Industries
  • Tower Laboratories Ltd.
  • PNP Pharmaceuticals Inc.
  • Confab Laboratories Inc.

Report Coverage

  • Market Forecasts
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Market Segments  

Product

  • Tablets
    • Over-the-Counter
    • Prescription
  • Capsules
    • Over-the-Counter
    • Prescription
  • Powders & Granules (MT)
    • Over-the-Counter
    • Prescription

Release Mechanism

  • Tablets
    • Immediate Release
    • Modified Release
      • Controlled Release
      • Enteric Release
      • Others
    • Chewable Tablets
    • Effervescent Tablets
  • Capsules
    • Controlled Release
    • Enteric Release
    • Others
  • Powders & Granules (MT)
    • Uncoated Powders & Granules
    • Coated Granules

End User

  • Big Pharma or Biotech
  • Small & Medium Size Pharma or Biotech
  • Emerging or Virtual Pharma
  • Nutraceutical Companies

Regions

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa

Key Questions Answered in Report

Q1. Which is the most lucrative market for oral solid dosage contract manufacturing?

Currently, North America leads the market with the U.S. being the major revenue contributor with a market share of more than 96% in this region.  Presence of a large number of players due to the developed nature of the country is the primary reason for the U.S. being a dominating country.

Q2. Which is the top-selling product in this space?

The tablets segment holds maximum share as far as oral solid dosage contract manufacturing is concerned. Demand for tablets is expected to continue growing during the forecast period as well, at a high CAGR of around 6%, due to increasing prescription of tablets by medical professionals. 

Q3. Which segment dominates by release mechanism?

The tablets segment dominates with more than half of the total market share, this trend is expected to continue during the forecast period as well.

Q4. Which are some of the leading companies in the oral solid dosage contract manufacturing market?

Some of the leading companies offering oral solid dosage contract manufacturing are Abbvie Inc., ThermoFisher Scientific Inc. (Patheon N.V.), Lonza Group AG, Catalent Inc., Pfizer Inc., Jubilant Pharmova, Piramal Enterprises Ltd., Wockhardt Ltd., CMIC HOLDINGS Co., LTD., Mayne Pharma (Metrics Contract Services, Alcami Corporation, Cambrex Corporation (Halo Pharma), CordenPharma International, GENVION Corporation, Arnet Pharmaceuticals, Pharma Tech Industries, Tower Laboratories Ltd., PNP Pharmaceuticals Inc., and Confab Laboratories Inc.

Q5. Which end user contributes the highest market share?

As a result of limited abilities in production of pharmaceutical products, small and medium pharma and biotech companies are the leading contributors toward oral solid dosage contract manufacturing. However, big pharma and biotech companies are also expected to experience high growth and become a lucrative segment over the coming years.

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Is this research conducted by Persistence Market Research?

Yes, the research has been conducted by expert analysts of Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

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Persistence Market research follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request a detailed methodology.

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What are the sources of secondary research?

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