As the contract services industry passes into the last quarter of 2017, most of the important players in the contract development and manufacturing (CDMO) space are no doubt anticipating solid revenue opportunities and growth, but only if they have the capabilities and operational capacity to compete for increasingly complex small molecule formulations and sophisticated large molecule medicines headed for global markets.
Although strong, industry spending is potentially moderating. In the near-term, though, most current statistics point to solid progress. For example, EvaluatePharma analyses reveal current global pharmaceutical markets are expanding at a compound annual growth rate of 6.3%, with R&D spending maintaining a 2.8% CAGR during the projected period until 2022.1 According to EvaluatePharma, that R&D spend will also add 50% more revenue during the same period. QuintilesIMS projects overall global drug spending to reach $1.5 trillion by 2021, but notes it will now be growing at about half the CAGR forecasted 2–3 years ago, with analysts readjusting projected market growth value down by close to 35%, or approximately $127 billion.2
For contract manufacturing and development service companies, opportunities for growth and success are reflected in the rising overall demand for pharmaceuticals and the healthy growth rates predicted for global pharmaceutical contract manufacturers. Mordor Intelligence projects that the contract manufacturing sector will likely expand at a 6.4% CAGR, reaching $84 billion in 2021.3 Grand View Research’s estimates of growth rates are slightly more pessimistic, citing a CAGR of greater than 6.0% annually… but with an overall value of $45.2 billion by 2022.4,5
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