The contract development manufacturing organizations market consists of sales of small molecules and biologics products by entities (organizations, sole traders, and partnerships), which serve the pharmaceutical companies on a contract basis.
Only goods and services traded between entities or sold to end consumers are included.The contract development manufacturing organizations is segmented by service into CMO, CRO, by product into small molecules, biologics and by end user into big pharma, small and mid-size pharma, generic pharmaceutical companies, other end users.The global contract development manufacturing organizations market is expected to grow from $158.72 billion in 2020 to $176.19 billion in 2021 at a compound annual growth rate (CAGR) of 11%.
The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.
For instance, according to the World Health Organization, the prevalence of chronic diseases rose by 57% in 2020 and by 2050 the world's population of 60 years and older is projected to rise to 2 billion.
Several governments across the globe are enforcing controls on pharmaceutical firms to safeguard the population from adverse drug effects.
According to data from PhRMA in 2020, the average chance of clinical success (the possibility that a drug undergoing clinical trials will finally be accepted) is calculated to be less than 12%.