From Roger Lias concerning the CPHI Annual Report 2023 — link shared in an earlier post by djohn.
The report confirms my belief that the global CRO/CDMO marketplace remains strong. The USA continues to dominate in most survey rankings, but it is fascinating to continue to watch the globalization of the market. With respect to "overall competitiveness" we see the USA leading (in order) India, China, Korea, Germany and the UK, with Saudi Arabia emerging in the Middle East.
When looking more specifically at "Bio innovation" it is USA, Germany, UK, India, Japan, France. For "Bio growth potential" it is USA, Germany, India, UK, France China and for "Quality of Bioprocessing" USA, Germany, UK, Japan, Switzerland, India.
Overall, India is seen as very strong in the CDMO space and as having weathered recent storms better than others. Biologics CDMOs in India continue to report EBITA margins of up to 35% compared to 20% in the west. There is also a strong transition from traditionally strong generics players to innovative drugs driven by a "tremendously strong" domestic manufacturing base; rising levels of innovation and returning scientists; the spectre of inflation and marginal pressures in western markets and the continued desire for diversified supply chains. Continuing advances in the global biosimilar marketplace also have an impact.
Brian Scanlan reports little evidence of on-shoring initiatives positively impacting CRO/CDMOs in the US and EU, with COVID and geopolitical supply chain considerations being balanced by funding and cash management concerns.
Capacity constraints at biologics and CGT CDMOs are still broadly seen as a concern and we will likely see sustainability being an increasingly important decision driver for companies outsourcing work - even to the point of being a contractual necessity.
It's a fascinating time in the CDMO marketplace even before we take into account advances in Cell & Gene Therapy, mRNA and so on!
