Click image to view it in full size

The small molecule-CDMO market is set to growth at a CAGR of 6.2% from 2020 to 2026. The focus of industry is shifting from primary care to specialty medicine which demands complex manufacturing. The supply-chain disruption and political tensions between various countries has led to the focus of developed economies like the US and EU to localize pharmaceutical manufacturing. Companies are re-evaluating their relations with CDMO’s such as location, cost vs. risk and level of services to achieve operational and supply-chain resilience. As the big pharma and large CDMO’s are building capabilities for large molecules, small molecule outsourcing will see upward trend, creating good opportunity for mid and small sized domestic regional CDMO’s to expand. The recent expansion and consolidation activities by CDMOs clearly highlights the focus on developing capabilities for handling high potency products and hybrid molecules such as antibody-drug conjugates has make it necessary for the small-molecule CDMOs to build capabilities for handling both large and small-molecule along with flexible manufacturing to handle small volumes.