Increased Need for Differentiation & Biosimilar and Biologic Manufacturing in Order to Provide Strong Growth Opportunities

The contract pharmaceutical fermentation services market is a fragmented market, and therefore, contract pharmaceutical fermentation service providers should look for new ways of differentiating their services from their competitors, and further provide value-added services. The global contract pharmaceutical fermentation services market is also expected to experience more consolidation, which could prove to be a huge opportunity for incorporating various growth strategies and offering integrated solutions. For instance, Catalent, Patheon, and AMRI acquired Pharmatek, IRIX Pharmaceuticals, and Euticals, respectively.

Strong business alliances provide more opportunities for expanding services/capabilities/offerings. Famar and Fareva have significantly adopted the integration strategy of acquiring manufacturing facilities in the European region from large pharmaceutical companies. Biosimilar and biologic manufacturing presents a huge growth opportunity for the contract pharmaceutical fermentation services market during the forecast period.

Reduced Time-to-Market for Time-Efficient Development of Drugs

The rise in the population suffering from diseases requires treatment and therapies that further demand the time-efficient production of drugs. Contract service providers offer reduced time-to-market for various key pharmaceutical products by engaging with molecule owners, and providing platforms for the time-efficient development of drugs and other analytical services to bring products into the market faster for addressing various disease. This is expected to fuel the growth of the contract pharmaceutical fermentation services market during the forecast period.

Browse more detail information about this report at https://www.factmr.com/report/1517/contract-pharmaceutical-fermentation-services-market

Fragmentation in the Market, Price Pressure, and Low Unit Volumes to Impede the Growth of the Contract Pharmaceutical Fermentation Services Market

The pharmaceutical contract manufacturing market is fairly fragmented, with a lot of CMOs depending upon just a few clients for a significant proportion of their revenue. This lowers the value in terms of contracts throughout the industry. Entirely on the basis of cost and size, and experience, approximately 60-80% of pharmaceutical companies opt for going back to their preferred vendors. Furthermore, these contract pharmaceutical fermentation service providers face extreme price pressures due to tax incentives and lower inventories for low-volume products. Manufacturing costs are expected to drop by nearly 30% to generate tax savings. Furthermore, lack of venture capitalist funding for early-stage start-ups is expected to result in lesser expenditures than pre-recession levels. This factor is expected to hamper the growth of the global contract pharmaceutical fermentation services market.

Consolidation Providing a One-Stop-Shop in Order to Deal with Fewer Outsourcing Partners

Despite collaborations, the contract pharmaceutical fermentation services market is extremely fragmented, and there is no established leader in the contract pharmaceutical fermentation services market. Consolidation is expected to provide immense opportunities for pharmaceutical companies to get all their formulation- or drug development-related activities at a one-stop-shop. One-stop-shops can meet the needs of entire process outsourcing, and pharmaceutical companies are therefore opting for these contract pharmaceutical fermentation service providers in order to deal with fewer outsourcing partners.

Definition

Contract pharmaceutical fermentation services are majorly used by pharmaceutical industries when there are large volumes for the fermentation of products, and these products are further required for the development of drug formulations. Contract pharmaceutical fermentation services offer various types of fermentation techniques with the help of skilled staff, and hold a great significance as they directly deal with the health of human beings.

About the Report

The report offers a comprehensive evaluation of the business opportunities in the contract pharmaceutical fermentation services market, along with insights on the contract pharmaceutical fermentation services market outlook, and list of service providers in the contract pharmaceutical fermentation services market for the duration from 2018 to 2026.

Segmentation

The report offers a comprehensive taxonomy of the contract pharmaceutical fermentation services market on the basis of contract pharmaceutical fermentation service type, platform, product type, and end user of contract pharmaceutical fermentation services. On the basis of service type, the global contract pharmaceutical fermentation services market has been segmented into development services and commercial services. On the basis of platform, the global contract pharmaceutical fermentation services market has been segmented into bacterial and fungal/yeast. Based on product type, the global contract pharmaceutical fermentation services market has been segmented into bio-therapeutics, enzymes, peptides, plasmids, cytokines & growth factors, vaccines, others (fusion proteins, etc.). On the basis of end user, the global contract pharmaceutical fermentation services market has been segmented into pharmaceutical companies, biotechnology companies, animal health companies, and academic & research institutes. Based on region, the contract pharmaceutical fermentation services market has been segmented into North America, Latin America, Europe, Asia Pacific excluding Japan (APEJ), Japan, and the Middle East & Africa (MEA).

Additional Questions Answered

Some of the additional questions addressed in this report on the contract pharmaceutical fermentation services market are-

  • What is the revenue potential of the contract pharmaceutical fermentation services market across emerging economies?
  • What are the factors driving the growth of the contract pharmaceutical fermentation services market across the world?
  • What are the major challenges influencing the growth of the contract pharmaceutical fermentation services market?

For answers to all possible questions required for gauging the performance of the contract pharmaceutical fermentation services market, get in touch with our expert analysts.

Mr. Shambhu Nath Jha is a seasoned consultant and researcher. His research papers have been published in reputed websites and trade journals. His interests include philosophy and history.

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About the Author: Shambhu Nath Jha

Mr. Shambhu Nath Jha is a seasoned consultant and researcher. His research papers have been published in reputed websites and trade journals. His interests include philosophy and history.

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