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Oncology Dominates Active Pharmaceutical Ingredient CDMO Market with 35.5% Revenue Share

Oncology asserts its dominance in the Active Pharmaceutical Ingredient CDMO Market, commanding a formidable 35.5% share of the revenue.

In a recent report by Research and Markets, it’s revealed that the field of oncology is spearheading the Active Pharmaceutical Ingredient (API) Contract Development and Manufacturing Organization (CDMO) market, commanding an impressive 35.5% revenue share in 2022.

This surge is fueled by an escalating demand for potent APIs, marking a significant trend in the pharmaceutical industry.

Market Overview

The global active pharmaceutical ingredient CDMO market is poised to reach USD 156.3 billion by 2030, showcasing an anticipated Compound Annual Growth Rate (CAGR) of 6.9% from 2023 to 2030. The key drivers propelling this growth include heightened Pharmaceutical Research and Development (R&D) investments, patent expirations, and an increasing need for generic drugs and biologic innovations driving outsourcing trends.

The pharmaceutical sector’s growing focus on small molecules, coupled with the complexity of active pharmaceutical ingredients (APIs) and the imperative to reduce costs, has catalyzed a rapid expansion of outsourcing services. The market landscape, while still fragmented, sees a few companies achieving global reach and scale in the CDMO sector. Notably, many entities are offering comprehensive solutions, acting as integrated sources for APIs and formulations.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted API makers, especially with a surge in demand for medications required to manage critically ill patients. The sudden need for increased production highlighted the importance of adaptability for API CDMOs in maintaining drug supply. This period underscored the varying levels of preparedness among companies to withstand the pressures of quick scale-up.

Key Players and Market Highlights

Several notable players in the API CDMO market, including Cambrex Corporation, Recipharm AB, Thermo Fisher Scientific Inc., Samsung Biologics, and Lonza, are mentioned. The report emphasizes the dominance of the traditional API segment, accounting for the largest revenue share in 2022. Innovative drugs, especially those in the oncology sector, held a significant revenue share, reflecting the industry’s focus on Research and Development (R&D) and FDA approvals for new molecular entities.

Segment-Specific Insights

          Traditional API Segment: Dominated the market in 2022, contributing to 39.8% of the revenue share.

•          Innovative Drugs Segment: Held 73.7% of the revenue share in 2022, driven by increasing FDA approvals and a heightened focus on R&D.

          Oncology Segment: Led the market with a substantial revenue share of 35.5% in 2022, fueled by the growing demand for highly potent APIs in cancer therapy.

•          Biotech Segment: Anticipated to grow at a rapid rate of 7.0% over the forecast period, owing to the high adoption of biopharmaceuticals.

•          Clinical Workflow Segment: Expected to witness the fastest CAGR of 7.3% over the forecast period, driven by an increase in clinical research studies supporting API demand.

•          Asia Pacific: Anticipated to register the fastest CAGR of 9.1% over the forecast period, surpassing Europe and North America, fueled by the growth in pharmaceutical companies and contract manufacturing organizations in developing countries.

This report offers a comprehensive exploration of the API CDMO market, shedding light on key trends, influential players, and the critical role of oncology in shaping the industry’s landscape.


Joan David-Leonhard

Joan David Leonhard is a recent Pharm.D graduate with a strong passion for the pharmaceutical industry and a particular interest in pharmaceutical media and communication. Her brief internship experience includes roles in pharmacy where she built strong patient-pharmacist relationships and a pharmaceutical media internship where she actively contributed to drug information articles, blog posts, social media engagement, and various media projects.
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