Biologics Contract Development and Manufacturing Organizations: How Can Your Team Leverage Significant Growth Opportunities?
Risk-sharing business models for next-generation biologics will drive bio-CDMO growth and spur future potential
Overview
The global biologics pipeline is projected to shift towards more complex treatment modalities, including cell and gene therapy (CGT), nucleic acid therapy, and bispecific. Biopharmaceutical companies that focus on this treatment will strive for reduced durations for clinical development and a greater focus on producing drugs in a cost-effective manner with lower costs of goods sold (COGS).
Biologic contract development and manufacturing organizations (Bio-CDMOs) are actively framing manufacturing and supply chain strategies, with a specific emphasis on partnering with service providers to optimize the production process. The US Inflation Reduction Act (IRA) and BIOSECURE Act have the potential to significantly impact drug innovation and the demand for CDMO services, leading to radical transformations in global outsourcing dynamics and CDMO strategies.
Venture capitalists are assisting their portfolios in internally restructuring and extending their cash reserves. The CDMOs have experienced a consistent decrease in demand, especially for the initial phases of development. However, in late 2023 and 2024, there was a rise in M&A transactions, favorable conditions for biotech financing and valuation, and a stabilization of inflation and interest rates. It is anticipated that there will be a resurgence in demand, particularly from emerging biopharma and early-stage development, by 2024.
What is the growth potential for major segments based on product type, cell expression type, modality, and geographic region?
How can your company capitalize on capacity expansions, mergers, acquisitions, and the expansion of service offerings to grow?
What steps can your team take to leverage strategic imperatives, growth drivers, transformative megatrends, new business models, innovative strategies, and growth opportunities?
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