Small Molecule Innovator CDMO Market - Forecasts from 2024 to 2029

The small molecule innovator CDMO market is projected to grow at a CAGR of 7.74% during the forecast period thereby reaching a market size of US$86.247 billion in 2029 from an initial value of US$51.165 billion in 2022.

The increasing aging population globally is creating demand for healthcare services tailored to the needs of elderly individuals. Additionally, the prevalence of chronic ailments has seen a notable uptick, further fueling the demand for innovative small-molecule drugs.

Moreover, governments are increasingly allocating resources to support the development and manufacturing of pharmaceuticals, including small-molecule drugs. This is in response to the growing healthcare needs of their populations. For instance, the establishment of the pharmaceutical investment company (Lifera) by the Public Investment Fund (PIF) of Saudi Arabia on June 2023. Lifera is positioned as a commercial-scale CDMO with a focus on manufacturing life-saving and essential pharmaceutical products. This includes a diverse range of medical solutions such as insulins, vaccines, plasma therapeutics, monoclonal antibodies, cell and gene therapies, and innovative small molecules . The creation of such entities demonstrates a commitment to fostering the growth of the pharmaceutical and addresses the challenges posed by the surge in chronic diseases and the aging demographic.

Increasing cases of chronic ailments

Globally, the increasing incidence of various health conditions such as cancer and diabetes has led to a heightened demand for small-molecule drugs, which are commonly employed in the treatment of these ailments. The available data indicates a substantial rise in the prevalence of diseases worldwide.

In the United States, as indicated by the American Cancer Society, the estimated number of new cancer cases for the year 2022 stands at 983, 160 for males and 934, 870 for females. These figures underscore the significant impact of cancer as a prevalent health concern., This highlights the ongoing need for robust efforts in prevention, diagnosis, and treatment within the healthcare landscape.

Further, these statistics underscore the pressing need for pharmaceutical solutions, particularly in the realm of small-molecule drugs. The demand for these medicines is driven by their potential to reduce costs, provide access to specialized expertise, and enhance overall speed and efficiency in drug development and manufacturing processes. As the global health landscape evolves, the pharmaceutical industry faces the need to meet the growing demand for effective treatments, emphasizing the importance of such services and healthcare solutions.

Additionally, the growing elderly demographic is contributing to an increased need for novel healthcare services, specifically in the realm of small molecule innovation through Contract Development and Manufacturing Organizations (CDMOs). In the United States, the population aged 65 and older has undergone significant expansion, totalling 55.8 million individuals or 16.8% of the overall population in 2020. This demographic shift signals a clear trend toward an aging society. As people advance in age, there arises a growing demand for healthcare solutions that is meet the unique needs of the elderly population.

The China small molecule innovator CDMO market is predicted to expand steadily.

The rise in clinical trial activity with a significant increase in contract development & and manufacturing organizations (CDMOs) offering end-to-end services in the country is expected to boost market growth. In addition to this, the high disease burden in China provides further impetus to meet the growing demand for drug development and manufacturing processes. Furthermore, China is a highly preferred country for conducting clinical trials owing to its large pool of local experts and regulatory actions by clinical trial bodies. For instance- NMPA's Center for Drug Evaluation in China takes initiatives to improve the quality of clinical trial studies at low cost, supporting the development of CDMO services.

As per the estimates from WHO, the ageing population in China is expected to grow multifold in upcoming years attributed to longer life expectancy and declining fertility rates. By the year 2040, it is expected to reach 402 million people from 254 million people in 2019. This reflects the increasing demand for drug discovery and development, promoting the growth of the small molecule innovator CDMO market till the forecast period.

Market Key Developments

• In January 2023, Lonza completed the expansion of its Solid Form Services Facility in Bend, USA. This expanded facility includes dedicated laboratory space designed to support biotech and midsize pharmaceutical companies in their early-stage compound development. It offers comprehensive support for solid form screening, characterization of small molecule active pharmaceutical ingredients (APIs), and early-stage crystallization process development.
• In September 2022, WuXi STA, a subsidiary of WuXi AppTec, announced the opening of its new sterile lipid nanoparticle formulation facility. The integrated drug product platform CRDMO will offer various services. These include such as pre-formulation, formulation development, solid-state development, and clinical to commercial drug product manufacturing with a wide spectrum of drug delivery technologies.

Segmentation:

By Product

• Small Molecule API
• Small Molecule Drug Product

By Customer Type

• Preclinical
• Clinical
• Commercial

By Therapeutic Area

• Cardiovascular Disease
• Oncology
• Respiratory Disorders
• Neurology
• Metabolic Disorders
• Infectious Disease
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• Thailand
• Taiwan
• Indonesia
• Others