The global biologics contract manufacturing landscape is undergoing a strategic transformation as drug therapies become more complex. While the market expanded to $23.2 billion in 2025, the key to success for contract development and manufacturing organizations is no longer just scale, but specialization, according to a new report from global healthcare consultancy Alira Health.
The firm’s 2026 Biologics Contract Manufacturing Report, released Tuesday, analyzes global market dynamics and investment trends, finding that sponsors are increasingly seeking manufacturing partners with differentiated technical skills and regulatory expertise to support the production of next-generation biologics. The analysis covers protein biologics, vaccines, and advanced therapies, highlighting a move toward more sophisticated production platforms and infrastructure.
This evolution reflects a maturing market where sponsors require partners capable of navigating the complexities of advanced therapeutic development and commercialization.
“Manufacturing capacity alone is no longer enough to create lasting competitive advantage,” said Filippo Pendin, a partner in transaction advisory services at Alira Health. “As biologic therapies become more complex, sponsors increasingly value partners with specialized technical expertise, regulatory excellence, and proven commercial manufacturing capabilities.”
The report suggests that this shift impacts investment, M&A activity, and strategic planning across the industry. For CDMOs, it signals a need to invest in modality-specific technologies and talent to meet the rising demand. For pharmaceutical sponsors, the findings underscore the importance of vetting potential partners based on their specific experience with complex molecules and their track record in commercial-scale production.
“This year's report reflects a market where differentiation is increasingly driven by capability rather than scale,” Pendin added.
