Innovative products and services such as nanobodies, rDNA, synthetic vaccines, and immunotherapeutics have emerged in the biologics industry in the last few years as part of the industry’s rapid expansion in the sector. Hybrid structures, which combine biologics with well-defined chemical entities, have had numerous opportunities to be explored in this industry.
Due to the rapid expansion of the biologics industry, an increase in outsourcing biologics development and manufacturing is to be expected. Biologics have gained wide applications in Stem Cell Research, Vaccine and Therapeutics Development, Blood & Blood-Related Products Development, and Cellular and Gene Therapy Products Development, among others.
The global biologics outsourcing market is expected to grow at a robust CAGR of 12.5% over the forecast period 2022-2028. The pace of biological drug development is increasing and is undergoing an increasing number of clinical trials. Outsourcing partners with platform solutions and specialized knowledge, expertise, and technologies are sought after by many pharmaceutical companies to develop cost-effective methods. Biologics outsourcing market growth will be stifled by high capital, technical, regulatory, and customer acquisition costs. Despite being very expensive when compared to conventional small molecule drugs, biologics are proven to be very beneficial for patients and also ensure higher profit margins for the drug manufacturers.
Outsourcing biologics development and manufacturing to provide ample growth opportunities
The biologics industry is growing at a rapid pace although with a lack of in-house biologics development and manufacturing capabilities. Biopharmaceutical companies’ drug manufacturing capacities have stimulated them to outsource the several aspects of biologics development and manufacturing process to highly efficient service providers.
Moreover, outsourcing services to other organizations such as contract research organizations (CROs), contract development and manufacturing organizations (CDMOs), and contract manufacturing organizations (CMOs) enable large biopharmaceutical companies to cut down on their operational costs and focus more on their core competencies. These organizations ensure congruity between demand and supply thereby speeding up the drug discovery and manufacturing process and also making it more convenient. This further brings the life-saving drugs to the market and ultimately to needy patients as early as possible.
Substantial growth in the Asia Pacific is expected
Asia Pacific biologics outsourcing market is expected to grow on account of the increase in non-communicable diseases coupled with an increase in the demand for biologics. Moreover, growth in the pharmaceutical sector in emerging markets along with an increase in government initiatives to improve healthcare facilities across the economies of the region is propelling the growth of the biologics outsourcing market.
Companies from around the globe are making significant investments in China and India to outsource their biologics research and development, which is further acting as a major growth factor for the market. Additionally, developed regions such as North America and Europe are expected to maintain their market share in the global market due to rising government support, increased adoption of technology in healthcare, favorable reimbursement initiatives, and rising demand for quality diagnostics and treatments.
Market Structure and Competition Landscape
The global biologics outsourcing market is characterized by the presence of a significant number of players. Some of the prominent players operating in the market include Lonza Group AG, Wuxi Biologics (Cayman) Inc., Boehringer Ingelheim International GmbH, Abzena Limited, GL Biochem Corp., Catalent Inc., Samsung Biologics Co. Ltd., ThermoFisher Scientific Inc., Syngene International Ltd., Rentschler Biopharma SE, Abbvie Inc. and Genescript Biotech Corp., among others. Growing focus on biologics and increasing R&D spending on biologics drugs by these industry players are expected to drive the market. Some of the key developments in the global biologics outsourcing market include:
- In April 2022, FUJIFILM Diosynth Biotechnologies (FUJIFILM Corp.) completed the acquisition of Atara Biotherapeutics Inc.’s dedicated cell therapy manufacturing facility. FUJIFILM seeks to manufacture cell therapies for other companies in addition to Atara by using this facility.
- In January 2022, Samsung Biologics agreed to pay US$ 2.3 billion for Biogen’s 50% stake in Samsung Bioepis, a joint venture between the two companies. This is aimed to improve Samsung Bioepis’ biosimilar development capabilities and future performance in new drug development.
- In March 2021, WuXi acquired a single-use biologics production plant in Hangzhou, China, from Pfizer Inc.
- In September 2020, Biocon Biologics Ltd. and Mylan announced the launch of biosimilar Semglee. This biosimilar is intended to control high blood pressure in adults with type-2 diabetes and pediatric patients with type-1 diabetes.
- In January 2020, True North, an Indian private equity fund, announced that it had acquired around 3% of Biocon Biologics India Ltd., for US$ 100 Million.
Key Market Segmentation
RationalStat has segmented the global biologics outsourcing market on the basis of product type, source, application, end use, and region.
- By Product Type
- Monoclonal Antibody
- Antibody Drug Conjugates
- Others (Polyclonal Antibodies etc.)
- Recombinant Proteins
- Others (Fusion Proteins, etc.)
- By Source
- Others (Transgenic Animals such as Avian, Insects, etc.)
- By Application
- Stem Cell Research
- Vaccine and Therapeutics Development
- Blood & Blood-Related Products Development
- Cellular and Gene Therapy Products Development
- Others (Tissue & Tissue Related Products Development)
- By End Use
- Therapeutics and Diagnostics
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, industry associations, product catalogues, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for pharmaceutical companies, biotechnology and biologics companies, healthcare facilities, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global biologics outsourcing market is expected to grow at a CAGR of over 12.5% during the forecast period 2022-2028.
Global biologics outsourcing is expected to reach over US$ 22.5 billion by 2028.
Biologics outsourcing for stem cell research is one of the key trends in the market.
North America is dominating the market in 2021.
Major companies operating in the global biologics outsourcing market are Lonza Group AG, Wuxi Biologics (Cayman) Inc., Boehringer Ingelheim International GmbH, etc.