Biologics Outsourcing Market Poised For Strong Growth Due To Surging Demand For Biologic Therapies
The global healthcare industry has witnessed significant advancements in the field of biologics over the past few decades. Biologics, also known as biologic drugs or biological drugs, are medicines derived from living organisms and are complex, lab-grown versions of natural substances in the body, such as proteins or antibodies. They are increasingly being used for treating various chronic and life-threatening diseases such as cancer, diabetes, immune disorders, cardiovascular diseases, and infectious diseases. The growing adoption of monoclonal antibody (mAb) therapies and recombinant proteins for disease management across the world has created a large demand for biologics outsourcing services.
The global biologics outsourcing market is estimated to be valued at US$ 19.67 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the high growth of the biologics outsourcing market is the surging demand for biologic therapies owing to their high specificity and fewer side effects as compared to small-molecule drugs. Furthermore, biologics have revolutionized the treatment of various chronic diseases. With growing incidence and prevalence of non-communicable diseases worldwide, the adoption of biologics is increasing rapidly which is fueling the demand for outsourcing services from biopharmaceutical and biotechnology companies. The other driver is the complexity and high costs associated with developing and manufacturing biologics in-house. Due to significant R&D investments required and stringent regulatory standards, most sponsors opt to outsource drug development activities to minimize risks and costs which is propelling the outsourcing market growth.
SWOT Analysis
Strength: Global Biologics Outsourcing Market Size has strong growth potential due to the rising demand of biologics drugs and emergence of complex biologics. Several CROs and CDMOs offer niche services including cell line development, process development, cGMP manufacturing which help biopharma companies to reduce capital investment and focus on core areas. Furthermore, advancements in gene therapy and cell therapy are expanding applications of biologics providing growth opportunities to outsourcing companies.
Weakness: High development and manufacturing costs of biologics pose challenges for outsourcing companies to maintain profit margins. Additionally, ensuring robust quality systems and stringent regulatory compliance increase operational complexities and costs. Dependence on few contract manufacturers can impact supply chain stability of biologic drugs.
Opportunity: Rising demand for biosimilars and biobetters in emerging markets of Asia Pacific and Latin America presents lucrative opportunities for outsourcing partners. Also, growing focus on one-stop-shop services, specialized capabilities in cell and gene therapies will expand business opportunities. Collaboration between large pharma companies and CMO/CROs provides impetus to develop novel techniques to enhance production efficiencies.
Threats: Consolidation among contract service providers intensifies competition. Additionally, tight regulations and manufacturing complexities of cellular and gene therapies require high capital investment posing financial risks. Patent cliffs of large biologics further pressure pricing andprofitability of outsourcing companies.
Key Takeaways
The global biologics outsourcing market is expected to witness high growth over the forecast period supported by increasing demand for cheaper biologic drugs and complex therapies. Regionally, North America dominates currently due to presence of majority pharmaceutical players and contract service providers in the region. However, Asia Pacific region is anticipated to surpass other regions owing to expanding biopharma industry, low manufacturing costs and government support for developing biosimilar drugs in countries like China and India.
Key players operating in the biologics outsourcing market are Thermo Fisher Scientific Inc., Abzena Ltd. Fujifilm Diosynth Biotechnologies, KBI Biopharma, EirGenix, Inc., Curia Global, Inc., Bionova Scientific, Inc., Boehringer Ingelheim International GmbH., STC Biologics., Abbvie Inc., Avid Bioservices, Inc., Catalent Inc., Emergent, Eurofins Scientific, Genentech, Inc., Genscript Biotech Corporation, JSR Corporation, Lonza, Merck KGaA, and Rentschler Biopharma SE. Majority of these players are focusing on scaling up production capacities and developing niche capabilities in cell and gene therapies through acquisitions and partnerships to strengthen their market position.
For More Insights, Read- https://www.trendingwebwire.com/biologics-outsourcing-market-analysis-growth-forecast-outlook-2023-2030/
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