Giving an overview of the sector’s scale, the former VP explained that CDMO is directly linked to the global pharmaceutical market – which is growing apace. “In 2019… the global pharma market [was] around USD 1.3tn, [and] it is expected to grow by 2025 to USD 1.6tn.” For CDMO, this translates into an estimated 48% expansion.
The pandemic disrupted the sector in two main ways. “The productivity of the R&D has gone down during the pandemic time, and… clinical trials were delayed.” Consequently, they expect a knock-on effect in 2023-25 with decreased approval rates.
On the topic of divestments, the conversation covered recent industry developments, whether these could be indicative of a broader industry push towards formulation or more upstream development services, and Catalent and Lonza.
The Interview then moved on to global players. One noted was Wuxi Biologics, a “very respectable” company. “Is Wuxi ambitious? Yes. Are they expanding into the US? Yes. Are they definitely very patient? Yes. Are they establishing a good rapport and reputation? Answer is, yes… I see a great future of Wuxi in the next decade, but right now they are still at the ground stage”
To access all the human insights from Third Bridge Forum’s Interview – Small molecule CDMO divestments – impact of growing focus on biologic manufacturing & potential M&A activity – click here to view the full transcript.
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