Leading market participants are continuously investing in infrastructure, workforce development, and advanced technologies to strengthen their positions and capture a larger share of outsourcing revenue. Moreover, the growing presence of end-to-end service providers offering value-added, integrated, and risk-sharing business models is further contributing to market expansion.

The escalating complexity of modern drug development also fuels the demand for contract services. The increasing prevalence of biologics, biosimilars, HPAPIs, and personalized medicines necessitates advanced manufacturing capabilities and specialized expertise that many pharmaceutical companies may lack internally. CMOs and CDMOs frequently possess cutting-edge technologies, such as continuous manufacturing processes, sophisticated containment systems for HPAPIs, and flexible production lines for personalized therapies, making them indispensable partners. Integrating automation and artificial intelligence further enhances their value proposition by improving quality control, optimizing processes, and ensuring stringent regulatory adherence, ultimately accelerating the often lengthy and intricate drug development lifecycle.

Recent Developments

In January 2025, Lonza (Switzerland) announced its intention to divest its Capsules & Health Ingredients business. This strategic decision aims to allow Lonza to concentrate on its core CDMO operations.

In October 2024, Thermo Fisher Scientific (Italy) introduced its Accelerator Drug Development at CPHI Milan. This integrated CDMO and CRO solution aims to expedite drug development across the pharmaceutical value chain.

In July 2024, Suven Pharmaceuticals (India), backed by Advent International, proposed acquiring a controlling stake in Sapala Organics (India), a Hyderabad-based CDMO specializing in oligo drugs, with a phased acquisition plan.

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