Pharmaceutical Outsourcing Market Size, Share, Service Type (Biological Services, Chemical Services, Lead Identification & Screening, Lead Optimization, and Others); By Drug Type (Small Molecules and Large Molecules); By Therapeutic Area (Respiratory System, Anti-infective, Oncology, Cardiovascular, Gastrointestinal, Central Nervous System, and Immunomodulation, and Others) Regional Analysis (North America - U.S, Canada, Other) (Asia-Pacific - India, Japan, China, South Korea, Japan, Australia, and Other) (Europe - U.K., Germany, Netherlands, Lithuania, Austria, Belgium, Poland, Sweden, Spain, France, Russia and Other) (Middle East - Saudi Arabia, UAE and Africa - South Africa, Zimbabwe and RoW) - Global Industry Insights, Trends and Forecast, 2017-2030

Report Format : PDF

Published Date : Sep-2018

Pages : 200

Report ID : VSR002143

Global Pharmaceutical Outsourcing Market showed crucial growth in the recent years and is anticipated to witness a steep rise by generating estimated revenue of US$ 15.34 billion over the forecast period. According to latest study conducted by our analysts and industry experts, the global market is expected to grow at a CAGR of 8.87% during the forecast period that is 2019-2030.

Pharmaceutical Outsourcing Market

Pharmaceutical outsourcing involves a process of inventing a new medicine in the field of pharmaceuticals, biotechnology, and pharmacology. It can be a lengthy, complex and expensive process, and despite the efforts, time and money, the success rates are extremely low. Outsourcing this process could save a biological or pharmaceutical company time, effort and money, especially since those providing these services are established companies with developed infrastructure, a highly developed technological front, and skilled expertise.

This global pharmaceutical outsourcing market study report analysis offers in-depth insights, revenue details, and other vital information regarding the global pharmaceutical outsourcing market, and the various trends, drivers, restraints, opportunities, and threats in the target market till 2030. The report offers insightful and detailed information regarding the various key players operating in the market, their financials, supply chain trends, technological innovations, key developments, apart from future strategies, acquisitions & mergers, and market footprint. The global pharmaceutical outsourcing market report has been segmented on the basis of type, application, and region. It includes the estimation of the market size, in terms of value, with respect to 4 main geographies, namely, North America, Europe, APAC, and RoW.

Segment Analysis

This research report segments the market for pharmaceutical outsourcing on the basis of type, application, end-user and region along with forecast of revenue and analyzing trends in each of the submarkets.

Service Type Insights: On the basis of type the global pharmaceutical outsourcing market has been segmented into Biological Services, Chemical Services, Lead Identification & Screening, Lead Optimization, and Others. The chemical services segment led the market growth in 2019 and is anticipated to be fastest growing segment over the forecast period in terms of demand and revenue. Other segment will contribute significant growth in coming years due to the products witnessing measurable demand. Each type is further described in detail in the report with value forecasts between 2019 and 2030 period.

Drug Type Analysis: Based on application the pharmaceutical outsourcing market has been categorized into Small Molecules, Large Molecules and others. In 2018 the small molecules segment was valued to collect healthy growth rate and is estimated to show it’s continue dominance over the forecast period in terms of revenue. Each end-user is further described in detail in the report with value forecasts for aforementioned period. In terms of therapeutic area, Oncology segment dominated the global drug discovery outsourcing market in 2019.

Regional Analysis

Basis on demography analysis, the global pharmaceutical outsourcing market has been segmented into North America, Asia-Pacific, Europe, South America, Russia, Middle East and Africa. Among these regions, North America is projected to be the fastest growing region for pharmaceutical outsourcing over the forecast period due to strong economic growth, rapid industrialization, growing purchasing power, and the region has emerged as a hub for biotechnology and pharmaceuticals industry. Additionally, an increase in investments in research & development (R&D) by large pharmaceutical and biotechnology companies and their focus on streamlining internal costs leading to the drug discovery outsourcing process fuels the market. In the global market Asia Pacific was the largest shareholder and generated more than half of the demand in overall global market in 2019 and is anticipated to expand at a high CAGR from 2019 to 2030 due to increasing in focus of pharmaceutical companies on the region as a favorable site for drug discovery outsourcing processes.

Charles ricer laboratories international INC., WuXi AppTec Co., Ltd., Albany Molecular Research Inc. (AMRI), Sygnature Discovery, WuXi Biologics (Cayman), Inc., GVK Biosciences Private Limited, Thermo Fisher Scientific, Inc., Pharmaron Beijing Co., Ltd, Domainex Ltd., Jubilant Biosys Ltd., Evotec SE, Eurofins Discovery, GenScript Biotech Corporation. LabCorp/Covance, Quintiles, Lonza, EuroFins Scientific, Paraxel, Icon, Patheon, Catalent, PRAH, ChRiver, INC, Piramal, Capsugel.

Outsourcing Market Key Update, 2016

Company	Key Growth Drivers
LabCorp/Covance	Covance acquisition, organic volume growth in the Company’s managed care business and toxicology testing business, and increase in revenue per requisition in core testing business.
Quintiles	IMS merger, $xx.xx M growth in Commercial Solutions business from greater demand for real-world and late-phase research services.
Lonza	Capsugel acquisition, significant sales growth in the Company’s Pharma & Biotech Segment with strong performance from its Mammalian Manufacturing business. Signed a number of manufacturing agreements with industry players, including Clovis Oncology to supply rucaparib, and bluebird bio to supply gene therapy vectors.
EuroFins Scientific	Sales growth in North America and France markets, the Company’s two largest revenue generators. Food, air and water testing services posted strong performances, primarily in France and Germany. EuroFins has further expanded its footprint with the launch of medical device testing services to add to its already comprehensive pharma testing capabilities.
Paraxel	Modest increases across all three of the Company’s business units, led by $xx.xxM spike in the Parexel Consulting Services (PCS) services segment, which included new business wins and the addition of $xx.xx M in revenue related to the acquisition of Health Advances, a pharmaceutical consulting firm.
Icon	Sales increased due to additional revenues from the acquisition of ClinicalRM in September 2016, and the full year impact of the acquisition of MediMedi Pharma Solutions in February 2015. Growth was also higher across markets in the US and in BRIC regions.
Patheon	Double-digit sales growth in the Company’s Pharmaceutical Development Services (PDS), and Drug Substance Services (DSS) business segments. PDS revenues increased by $xx.xxM from the acquisition of Agere Pharmaceuticals, a provider of solubilisation technologies, and $xx.xxM in the DSS segment as a result from the purchase of Irix Pharmaceuticals, a specialty API maker for high-potency drugs and schedule I–IV controlled substances.
Catalent	Net revenue increased by $xx.xxM led primarily by its Softgel Technologies Segment. The Softgel Segment witnessed higher volume demand for consumer health products using the company’s proprietary offerings.
PRAH	Service revenues benefited from an increase in billable hours as well as better than expected backlog, and growth in new business wins. During FY16, PRA derived nearly 52 percent of its total service revenue from large pharma clients, and over 19 percent of its Service revenue was from large biotechnology companies.
ChRiver	Better than expected pricing environment helped to drive sales along with increased capacity utilization in safety assessment services by acquiring WIL Research; and strong demand for microbial testing solutions. In June 2016, Charles River acquired Blue Stream Laboratories to enhance the Company’s biologics business. In total, both acquisitions added over $xx.xxM in top-line revenue.
INC	Net services revenue increased $xx.xxM in 2016, as the Company witnessed strong growth across CNS and oncology therapeutic areas. INC also reported a stronger backlog of business, driven by growth in new awards, and a lower cancellation rate at the beginning of the year.
Piramal	Acquisition of Coldstream, a developer of sterile injectable products, and completed capacity expansion at Grangemouth plant to handle larger batch sizes of ADC manufacturing. Entered into a co-promotion agreement with Cumberland to sell branded hospital products in the US. Piramal acquired five brands in gastro-intestinal segment, and four consumer brands from Pfizer.
Capsugel	Sales growth from Xcelience and Powdersize acquisitions, and spray-dried dispersion products, and liquid-filled capsule sales.

As Per Our Analysis, The Pharmaceutical Outsourcing Industry Is Facing Some Significant Challenges:

1. Difficulties in establishing trust about quality and robustness of the product that gets manufacture at CMO’s.

2. Visibility Issues: New product pipeline of marketing companies and product pipeline available with CMO’s

3. Technical Data: Complete data non-availability on Day one at CMO’s. Data availability in fragments.

4. In the early years of the relationship, it is difficult to understand the company value system of the CRO and CMO, which may generate conflicts (despite making a quality agreement). Once a quality issue is raised, an investigation and resolution can become time-consuming, expensive and a headache.

5. If things are not done accordingly and fall through the cracks, it is easy to criticize personnel within the CMO. However, this might have long-term implications because the project manager has to continue to work with the CMO staff to ensure operational streamlining.

6. One assumes limitless flexibility with CRO’s and CMO’s. It is assumed that the production schedule with the CMO can be modified, shifted, decreased or increased whereas the reality of the experience could be the total opposite.

7. The CMO may be running a very lean operation and may not have staff to keep track of paperwork. This may pose complications when filing the product with the FDA.

8. Being a small company, the CMO may not have well developed procurement and supply chain systems. This could put the corporation at a major disadvantage.

Global Pharmaceutical Outsourcing Market Study Report Offer You!

The global pharmaceutical outsourcing market study report gives an idea about market size, share, stock, equity, investment and total price analysis. Also, the report provides comprehensively industry insights with all major factors such as market credit, allocation, demand, distribution, market scope, key players, end user & applications, provisions, livestock, commodities and industry economics analysis, future growth & forecast. The global market report includes all depth data like pre-market emphasis, market survey, market investment, industry advice, portfolio, finance, access, trade, market exploration, industry review and market predication & projection to develop effective strategies for optimizing their market position. This report outlines the revenue and operating margin drivers of the outsourcing market in 2018 across a peer group of 27 publicly-traded CRO/CMOs. The report summarizes the different drivers of corporate revenue growth including business segments, and geographic markets, acquisition synergies, and supply agreements with pharmaceutical companies. Finally, the report looks at cost-containment and operating expenses, including acquisition expenses, S,G&A, and other fixed/variable costs.