Biologics CDMO Market Trends

Growth Drivers

• Rising COVID-19 Cases - Worldwide coronavirus (COVID-19) cases were close to 767 million as of June 13, 2023. Hence, the demand for CDMO has been surging since the COVID-19 pandemic has brought attention to how essential it is to have a robust and reliable supply chain for the development and production of biologics. In addition, the increasing geopolitical tensions with China and other regions of the world have merely made it more important to have an efficient supply chain management system. This system is established to reduce any supply risks that could negatively impact the personnel, equipment, and raw material quantity and accessibility required for the manufacture of biologics.
• Surge in Demand for Cell & Genetic Therapy - Cell and gene therapies (CGTs) are going to keep multiplying as long as CDMOs continue to expand the sector and leave their mark on human history. The greatest barrier to commercial success for cell and gene therapy (CGT) companies may be converting a medicine from a biological notion to a scalable and producible treatment. This is particularly challenging in the CGT industry since there lack many suitable individuals with expertise in both process engineering and biology. An early-stage CGT developer can get support from a CDMO in understanding the constraints of their source cells. Additionally, the CDMO may encourage the development of plans for tissue processing, cell bank creation, and cell line engineering.
• Growth in Use of Biologics in Geriatric Population - Ageing is a challenging process that involves a multisystem functional decline, flaws in many homeostatic processes, and a dramatically diminished ability to adapt to stress. Furthermore, the pharmacokinetics of pharmaceuticals are modified in the elderly population, leading to elevated hazards associated with their usage. These modifications are associated with an increase in total body fat and reductions in lean body mass, total body water, serum albumin level, and renal and hepatic function. Consequently, there is a higher risk of myelosuppression, cardiotoxicity, renal insufficiency, and neurotoxicity in older individuals using drugs. There additionally exists a special impact of polypharmacy on the mental state of aging. Due to these factors, biologic medicines seem appropriate for usage in the geriatric population. These therapies have a largely unidentified metabolism that appears independent to hepatic metabolism or renal excretion. As a consequence, with the surge in demand for biologic product by geriatric po0pulation the need for CDMO is also projected to grow.

Challenges

• Barrier in Communication - Within an organization as well as with other businesses, communication can occasionally breakdown. If company fail to make and follow a communication plan, business may find itself in the dark regarding what's happening during the packing, shipping, and production processes.
• Lack in Complete Control on Profits - The total earnings will fall if business outsource the manufacturing needs to a third party. The product and the manufacturing procedure will determine the exact amount of the investment. The overall amount they pay will depend on a number of factors, including labour costs, raw materials, and the quantity of orders you require.
• Strict FDA Regulations for CDMO