Global Small Molecule Innovator CDMO Market Grows Steadily at a CAGR of 6.5%

Introduction

A contract development and manufacturing organization manages the discovery and invention of novel pharmacological compounds and their outsourced production. The small molecule innovator CDMO is a pharmaceutical industry that offers contract services for producing and developing small molecule medicines. Small molecule drugs are typically synthesized organic compounds with a molecular weight below 900 Daltons. CDMOs offer pharmaceutical and biotech companies various services, including drug discovery, process development, analytical testing, and commercial manufacturing. These services are delivered on a contractual basis, enabling client companies to delegate the creation and production of their pharmaceuticals while focusing on other aspects of their business, such as research, marketing, and sales.

Market Dynamics

Increasing Demand for Small Molecule Drug Drives the Global Market

Small molecule applications account for more than half of specialty sales. Specialty medicines are increasingly propelling global pharmaceutical growth, particularly in developed markets, where they account for over half of sales. In 2020, small molecule pharmaceuticals dominated the approval of new molecular entities (NMEs). Small molecules constituted approximately 75% of the 53 NMEs certified in 2020. According to Pharm Source, the revenues of publicly traded Contract Development & Manufacturing Organizations (CDMOs) and CMOs specializing in developing and manufacturing small molecule pharmaceuticals rose by 15% during the first half of 2015, with some companies reporting revenue increases of over 20%. Both biopharmaceutical and small molecule methodologies have a history of providing significant therapeutic benefits to patients. Therefore, the increasing demand for small-molecule pharmaceuticals is anticipated to fuel market expansion.

Increasing Pharmaceutical R&D Investments Creates Tremendous Opportunities

According to the Congressional Budget Office, the U.S. pharmaceutical industry spent USD 83 billion on pharmaceutical research and development, ten times more than in the 1980s. The Congressional Budget Office of the United States also reported that the sale of approved new medicines increased by 60% from 2010 to 2019, with 59 new drugs approved in 2018. Numerous biopharmaceutical companies are electing to outsource their R&D activities, whether it be the production of novel monoclonal antibodies, small molecules, or protein products for rapid market commercialization. The rising incidence of chronic diseases, the introduction of biologics and biosimilars, and the expansion of government initiatives to stimulate the pharmaceutical industry are among the factors that are expected to increase pharmaceutical R&D spending globally, thereby creating growth opportunities.

Regional Analysis

Asia-Pacific is the most significant global small molecule innovator CDMO market shareholder and is anticipated to exhibit a CAGR of 7.61% during the forecast period. The Asia-Pacific healthcare industry is consistently evolving and expanding due to technological advances and low service costs. China retains the largest market share in Asia-Pacific due primarily to its high investment in pharmaceutical R&D. Additionally, a growing regulatory emphasis on product quality control is anticipated to be one of the main factors driving the market during the forecast period. Regulatory organizations in Asia-Pacific include the Therapeutic Goods Administration (TGA) in Australia, the Ministry of Food and Drug Safety (MFDS) in South Korea, the Pharmaceuticals and Medical Devices Agency (PMDA) in Japan, and the Singapore Health Sciences Authority (HSA) in Singapore. The region is anticipated to experience advantageous growth opportunities due to its market dominance.

North America is estimated to exhibit a CAGR of 6.2% over the forecast period. North America is one of the prominent contributors to expanding the Contract Development & Manufacturing Organization (CDMO) market for small molecule innovators. Several well-established pharmaceutical, biotechnology, and medical device companies characterize it. In addition, rising R&D expenditures by pharmaceutical and life sciences companies are anticipated to increase the region's contract manufacturing demand. In addition, the increasing prevalence of cancer, diabetes, and cardiovascular disorders in the region will likely increase demand for CDMO services to develop medications or medicines. It is anticipated that stringent regulations governing product development, production, and quality control will create growth opportunities for domestic contract manufacturing services.

Key Highlights

• The global small molecule innovator CDMO market was valued at USD 45.20 billion in 2022. It is estimated to reach USD 78.87 billion by 2031, growing at a CAGR of 6.5% during the forecast period (2023–2031).
• Based on product, the global small molecule innovator CDMO market is bifurcated into small molecule API and small molecule drug product. The small molecule API segment is the most significant contributor to the market share and is anticipated to exhibit a CAGR of 7.0% over the forecast period.
• Based on stage type, the global small molecule innovator CDMO market is divided into pre-clinical, clinical, and commercial. The clinical segment dominates the global market and is projected to exhibit a CAGR of 6.5% over the forecast period.
• Based on customer type, the global small molecule innovator CDMO market is bifurcated into pharmaceutical and biotechnology. The pharmaceutical segment is the most significant contributor to the market share and is anticipated to exhibit a CAGR of 6.81% over the forecast period.
• Based on therapeutic area, the global small molecule innovator CDMO market is segmented into cardiovascular disease, oncology, respiratory disorders, neurology, metabolic disorders, infectious disease, and others. The oncology segment owns the highest market share and is projected to exhibit a CAGR of 7.5% during the forecast period.
• Asia-Pacific is the most significant global small molecule innovator CDMO market shareholder and is anticipated to exhibit a CAGR of 7.61% during the forecast period.

Competitive Players

1. Cambrex
2. Recipharm
3. Thermo Fisher Pantheon
4. Corden Pharma
5. Lonza
6. Catalent
7. Siegfried
8. Piramal Pharma Solutions
9. Boehringer Ingelheim
10. Wuxi AppTec
11. Almac
12. Covance.

Recent Developments

• April 2024 - FT4 Powder Rheometer®, the STYL'One Nano compaction simulator, and a 3P Innovations API in capsule filling machine were recently acquired by AustinPx, a prominent contract development and manufacturing organization (CDMO) that focuses on improving the bioavailability of small molecule drug candidates that are intended to be taken orally. Faster timelines, increased stability, and less risk are all benefits of AustinPx's most recent investments, which boost the company's early-stage development and manufacturing capabilities.
• April 2024 - The New York-based healthcare private equity firm Signet Healthcare Partners ("Signet") made a substantial expansion investment in Curida Holding AS ("Curida"), the company announces. Through this strategic alliance, Curida will be able to speed up its expansion ambitions, which include improving the capabilities of its facilities and strengthening its position in the industry. Curida is a Contract Development and Manufacturing Organization ("CDMO") based in Oslo, Norway.

Segmentation

1. By Product
   1. Small Molecule API
   2. Small Molecule Drug Product
   3. By Stage Type
   4. Pre-Clinical
   5. Clinical
   6. Commercial
2. By Customer Type
   1. Pharmaceutical
   2. Biotechnology
3. By Therapeutic Area
   1. Cardiovascular Disease
   2. Oncology
   3. Respiratory Disorders
   4. Neurology
   5. Metabolic Disorders
   6. Infectious Disease
   7. Others