How the CDMO sector is reshaping its business

Growth Of Pharma CDMO companies in India - Saurav Chemicals Blogs

What Is CDMO In Pharma?

A Contract Development And Management Organisation, CDMO in the pharmaceutical industry refers to an organisation that focuses solely on developing and manufacturing drugs.

This means pharma companies need not bother about the first leg of manufacturing a drug. It can be outsourced to a CDMO. A lot of global organisations are turning to CDMO service providers in India.

Advantages Of CDMO

As a pharma organisation there is no scope for errors. It is paramount that a drug is developed and manufactured correctly. CDMOs help a long way in attaining this goal. Here are some key advantages of partnering with CDMO:

  • 1. Expert development by those who are well experienced.
  • 2. Reallocation of internal resources in the needed area.
  • 3. Reduction in costs, especially when outsourced to developing countries.
  • 4. Gives the ability to mass produce medicines.
  • 5. Faster production turnaround time.

Business Inroads In Pharma CDMO

Pharma CDMOs are growing exponentially. As per research done by Grand View Research Estimates, the CDMO market is slated to grow from $98.7 billion in the year 2018 to $157.7 billion in the year 2025.

That is not all, the CDMO sector with a CAGR compound annual growth rate of 6.9% is likely to overtake the pharma sector as a whole. So, what has led to this exponential growth in the pharma CDMO? 

Reasons For Exponential Growth Of Pharma CDMO

Increased Demand: The covid pandemic has led to a surge in demand like never before. From vaccines to drugs there has been an unprecedented demand. 

Human Longevity: Overall, with more and more breakthroughs the average quality of a person has improved. This also means a longer lifespan leading to demand for medicines.

Medical Insurance: These days not only are almost all illnesses covered but claims also are processed faster widening the scope of medical care to one and all.

Skilled Labour In Developing Countries: The pharma CDMO sector needs highly skilled manpower. For example, pharma CDMO companies in India are capable end to end. 

Willingness To Outsource: Pharma companies have finally realised that the advantages of outsourcing outweigh the disadvantages. 


To conclude, the initial reservations about outsourcing pharmaceutical production to other companies are dissipating quickly. Large pharma giants have realised that the pros of CDMO far outweigh the cons. 

If a pharmaceutical company wants to remain in business then it has to tie up with professional pharma CDMOS. Outsourcing to pharma CDMOS in developing countries is the best way forward. 

Keywords: CDMO Service providers in India, CDMO companies in India