2021 Global CDMO Top 10 Rankings and Tier Distribution Overview
This article was first published on PharmaCircle, with repost authorization granted to VCBeat. Author: Tao Ge from PharmaCircle. Header image source: 123rf.Note: This article does not constitute any investment advice or recommendations; please refer to the announcements of listed companies for authoritative information. This article is intended solely for the introduction of drugs related to medical health and does not recommend treatment plans (if applicable).
The CXO industry is one of the most internationalized subsectors within the pharmaceutical industry. The development history of foreign CXO giants can be described as a history of mergers and acquisitions (M&A). In particular, companies such as Lonza, Recipharm, and Siegfried Group from smaller European countries have largely grown into international leaders through overseas M&A. Therefore, when researching and analyzing this industry, we should adopt a global perspective, viewing the development of the entire industry and individual companies from a worldwide standpoint. In recent years, domestic CXO companies, including the WuXi AppTec group, Pharmaron, Asymchem, and Porton Pharma Solutions, have expanded their operations overseas.
As shown in the table below, Lonza ranks first, while China’s WuXi AppTec group (WuXi AppTec + WuXi Biologics) has secured the second position globally. Among the top 10, there are two Asian companies, with European firms occupying the majority of the spots.
Data Source: Company financial reports/compiled by PharmCube; data for Catalent, FAREVASA, Delpharm, and Aenova are from 2019; BI includes only CDMO business; no latest data available for Patheon; exchange rates based on the latest figures
In terms of growth rate, the WuXi Group ranks first. In terms of revenue scale, there is still a gap of nearly $1.5 billion between the WuXi Group and Lonza.
Source: Compiled by PharmCube; Patheon reported revenue of approximately $1.9 billion in 2016 and was acquired by Thermo Fisher Scientific in 2017, with no recent standalone financial data available for ranking purposes.
Some unlisted companies abroad do not regularly disclose their financial data, yet their strength cannot be overlooked. The following gradient distribution shows that China has few leading CDMOs; many have annual revenues below US$500 million, with the majority generating around US$100 million. Among unlisted companies, there are numerous outstanding enterprises. For those interested, please refer to “2021 China Pharmaceutical CDMO Industry Map” – Tier Rankings and Distribution.
Source: Financial reports / Produced by PharmCube Note: This chart only includes companies with publicly available financial data; some outstanding private companies are not included.
Regionally, the European CDMO industry is likely the largest globally. We have selected several representative companies for commentary as follows:
Founded in 1897 in the Swiss Alps, Lonza has expanded its operations across three continents. Our workforce of approximately 14,000 full-time employees forms a highly efficient team, with each individual making significant contributions to our business and the communities and countries in which we operate. In 2020, the company achieved sales of CHF 4.5 billion, with earnings before interest, taxes, depreciation, and amortization (EBITDA) from core activities reaching CHF 1.4 billion.
Patheon, founded in 1974 and headquartered in Durham, North Carolina, USA, and Amsterdam, the Netherlands, is a leading global contract development and manufacturing organization (CDMO) that integrates research and development, production, manufacturing, and services. In 2017, Thermo Fisher Scientific acquired Patheon for $7.2 billion, including $2 billion in net debt. Patheon operates advanced production facilities in North America and Europe and employs nearly 9,000 people worldwide. The company reported approximately $1.9 billion in revenue in 2016 and was integrated into Thermo Fisher’s Laboratory Products and Services segment.
Boehringer Ingelheim, founded in 1885, is a family-owned enterprise. Currently, its approximately 52,000 employees serve more than 130 markets across three business areas: human pharmaceuticals, animal health, and biopharmaceutical contract manufacturing. In 2020, net sales of human pharmaceuticals reached €14.42 billion, representing a year-on-year increase of 5.8% (adjusted for exchange rate fluctuations) and accounting for 74% of total net sales. R&D investment amounted to €3.28 billion, equivalent to 22.8% of net sales.
Source: Boehringer Ingelheim Annual Report
The animal health business performed strongly in 2020, with net sales of €4.12 billion, representing a 5% year-on-year growth on a currency-adjusted basis. The company completed several acquisitions in 2020 targeting firms in the veterinary and pet care sectors. The company disclosed that 60% of the top 20 pharmaceutical and innovative biotechnology companies are clients of Boehringer Ingelheim’s CDMO business, operating under the brand name Boehringer Ingelheim BioXcellence™. In 2020, the biopharmaceutical contract manufacturing business generated net sales of €837 million, a 6.6% year-on-year increase on a currency-adjusted basis. Outlook for 2021: Boehringer Ingelheim expects comparable net sales to grow slightly year on year.
Recipharm is a globally leading contract development and manufacturing organization (CDMO) in the pharmaceutical industry. Founded in Sweden in 1995, the Recipharm brand was established in 2001 to house the rapidly growing contract manufacturing segment of Recip’s business. Between 2001 and 2007, six additional plants were acquired, expanding production capacity, introducing advanced technologies, diversifying dosage forms, and broadening the customer network. In 2007, to adapt to evolving market dynamics, the company decided to fully commit to outsourced services. The “Recipharm” brand was further developed through additional acquisitions, solidifying its position as a pure-play CDMO. From 2015 to 2020, Recipharm consecutively acquired multiple CDMO companies, culminating in February 2020 with its largest acquisition to date: the purchase of UK-listed Consort Medical. This transaction positioned Recipharm as one of the world’s largest CDMOs by revenue. Currently, Recipharm operates approximately 30 manufacturing and development facilities across Europe, India, Israel, and North America, employing 8,666 people.
Siegfried Group is a global life sciences company that reported sales of CHF 845.1 million in fiscal year 2020 and employed approximately 2,500 people across nine locations on three continents as of December 31, 2020. Following the takeover of two sites in Spain on January 1, 2021, this figure rose to approximately 3,500 employees. Siegfried’s operations encompass the production of active pharmaceutical ingredients (APIs) and intermediates, as well as finished dosage forms (including tablets, capsules, sterile vials, ampoules, and ointments), along with the provision of development services. In 2020, the company acquired two large-scale pharmaceutical production facilities from Novartis in Barcelona. As part of the acquisition, Novartis entered into a long-term manufacturing and supply agreement, committing to purchase significant volumes of key products from these two plants.
Delpharm, founded in 1988, operates 17 manufacturing sites and employs 4,700 people. According to its official website, the company reported revenues of €800 million in 2019. In 1994, Delpharm acquired the Brétigny plant from Roche Synthex, which specialized in the production of solid dosage forms. The company further enhanced its solid dosage manufacturing capabilities by acquiring Pfizer’s Evreux plant in 2002. Subsequently, Delpharm acquired additional facilities from multinational pharmaceutical giants such as Bayer, Pfizer, and Sanofi, including five plants acquired in 2019.
For the fiscal year ended March 31, 2020, Fujifilm Corporation reported global revenue of $21 billion. FUJIFILM Diosynth Biotechnologies is a contract development and manufacturing organization (CDMO) for biologics, with facilities in Teesside, UK; Research Triangle Park (RTP), North Carolina; College Station, Texas; and Hillerød, Denmark. With over 30 years of experience, FUJIFILM Diosynth Biotechnologies specializes in the development and manufacturing of pharmaceutical technologies based on recombinant proteins, vaccines, monoclonal antibodies, macromolecules, viral products, and various microbial, mammalian, and host/virus expression systems. On March 19, 2021, Tokyo—Fujifilm Holdings Corporation (President: Sukeno Kenji) announced that it had selected Holly Springs, North Carolina, as the site for its new large-scale cell culture production facility in the United States, investing more than $2 billion to establish the largest end-to-end cell culture biopharmaceutical CDMO plant in North America.
Aenova was established in Germany in 2008 through the merger of pharmaceutical companies Dragenopharm and Swiss Caps, which formed the core of the group. In 2012, it acquired the Temmler Group, followed by the acquisition of Haupt Pharma in early 2014. Since 2012, Aenova has been owned by the private equity firm BC Partners. The Aenova Group is a leading global contract manufacturer and development service provider in the pharmaceutical and healthcare industries. With 4,500 employees, it offers end-to-end manufacturing and development services for all dosage forms and potency levels (ranging from nutritional solutions to highly potent drugs) across 15 sites in Europe and the United States.
A global, independent, family-owned group founded by Bernard Fraisse in 1990. In 2019, it reported annual revenue of €1.81 billion, with 39 production sites and 12,000 employees. On December 1, 2020, Fareva Group completed the acquisition from the Pierre Fabre Group of two sterile manufacturing facilities located in Idron and Saint-Julien-en-Genevois, France. This acquisition reinforces Fareva’s strategy to invest significantly in the oncology sector for the development and manufacturing of oncology products.
Almac Group is a mature contract development and manufacturing organization (CDMO) that provides a broad range of integrated services to the global pharmaceutical and biotechnology sectors throughout the drug development lifecycle. Its service portfolio spans research and development, biomarker discovery, development and commercialization, API manufacturing, formulation development, clinical trial supply, interactive response technology (IRT/IVRS/IWRS), and commercial-scale manufacturing. This privately held international company has achieved organic growth over the past five years and now employs more than 5,600 highly skilled professionals across 18 facilities in Europe, the United States, and Asia.
In terms of rankings, Chinese companies have indeed entered the top tier globally; however, only one entity from the WuXi AppTec group has made it into the top 10. There is a significant gap in between, with the majority of domestic CDMOs still ranking outside the global top 10, or even beyond the top 100. In the future, by leveraging our strong home market in China to accumulate experience and capital, we can actively expand overseas. Much like their European counterparts, Chinese CDMOs can achieve global success.