The biologics outsourcing global market is expected to grow at double digit CAGR to reach $87.6 billion by 2027.
Over the last two decades, the Pharmaceutical/Biotech industry has undergone radical changes. The unprecedented downsizing of the internal discovery of big pharmaceuticals, patent expiration, shift towards biologics have seen a surge in the externalization and outsourcing activities. As the industry is looking for new sources of discovery and development with limited resources, there is a growing preference to move towards externalization and willingness to embrace the concept of outsourcing, IQ4I estimates that ~23.6% of the Global R&D spending goes into biologics development.
Almost all the major Pharmaceutical/Biotech companies are considering outsourcing as a core strategy to fill their discovery pipelines. Outsourcing companies that have precise capabilities through greater flexibility are the preferred ones. Now-a-days, the big pharma relies more on CROs/CDMOs/CMOs for biologics development and manufacturing capabilities to stock up their pipelines.
Biologics out-paced small molecules in the global pharmaceutical market, with seven biologics appearing in the top 10 selling drugs and only three small molecules securing space for them in the race. The biologics global market was estimated to be $223.6 billion in 2018 with North America holding being a major share in the market. Asia Pacific is witnessing huge growth with many multinational companies investing in regional players for biologics outsourcing in key countries such as China and India. The China biologics market was estimated to be $25.50 billion in 2018 and China biologics outsourcing market is estimated to be for $2.1 billion. This is due to increased government funding and flexible regulatory framework, flourishing domestic biopharmaceutical and biosimilars market, improved capacities and capabilities that make them stand out in terms of development and production efficiencies.
The pharmaceutical outsourcing global market was estimated to be $128.0 billion in 2018, of which CROs account for 49.0% and CMOs accounts for 51.0%. IQ4I estimates that the biologics outsourcing global market to be $27.0 billion in 2018.
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