Market Trends of Nucleic Acid Therapeutics Contract Development And Manufacturing Organization Industry
The mRNA Therapy Segment is Expected to Witness Significant Growth Between 2024 and 2029
The field of mRNA-based therapeutics has witnessed a surge in attention and investment, driven by its promise to address a wide range of diseases, including infectious diseases, cancer, and genetic disorders. mRNA therapies can be tailored for various applications, from prophylactic vaccines to personalized cancer treatments. Personalized mRNA therapeutics are very complex for manufacturing and development, and they require specialized knowledge and expertise and are likely to need CDMO services. CDMO effectively manages the unique process requirements and complex manufacturing process of mRNA production, and it is essential to perform all aspects of the process in one location. This results in increased efficiency, reduced cost, and improved quality of mRNA drug substances and mRNA–lipid nanoparticle (LNP) drug products.
Significant investments from both public and private sectors are being directed toward mRNA research and development, leading to increased demand for specialized CDMO services. For instance, in July 2023, Vernal Biosciences, a CDMO, announced the completion of a USD 20 million funding round, led by Ampersand Capital Partners and Charles River Labs with participation from Dynamk Capital and the Vermont Center for Emerging Technologies to expand mRNA and LNP manufacturing. Such investment helps the CDMO players to expand their service portfolio, contributing to market growth.
Additionally, partnerships between CDMOs and pharmaceutical companies are becoming increasingly prevalent, allowing for the combined expertise and resources to accelerate the development of mRNA therapeutics. For instance, in February 2022, Moderna and Thermo Fisher entered into a 15-year strategic collaboration agreement for the dedicated, large-scale manufacturing of Spikevax, Moderna’s COVID-19 vaccine, in the United States. The agreement also applies to other investigational mRNA therapeutic candidates in Moderna’s pipeline. Similarly, in August 2023, AstraZeneca signed a new mRNA manufacturing deal with China’s CanSino Biologics, a CDMO company. Under the deal, CanSino will use its mRNA manufacturing platform to support AZ on the R&D of mRNA vaccines.
Hence, complexities in manufacturing mRNA therapeutics, increasing investment, and strategic collaboration are expected to boost the segment growth between 2024 and 2029.
North America is Expected to Hold a Significant Market Share Between 2024 and 2029
North America has witnessed an increase in CDMO investment in the production of nucleic acid therapeutics. Furthermore, the presence of several established companies and startups and the FDA approvals resulted in this region holding the maximum share in the global nucleic acid therapeutics CDMO market.
The increasing investment in the development of CDMO services is expected to contribute to the market growth between 2024 and 2029. For instance, in August 2022, IMM, a partner of VGXI, announced that it received a USD 12 million grant from the National Institutes of Health (NIH) to support the Phase 1 clinical trial of a DNA vaccine aimed at preventing Alzheimer's disease. The vaccine will be manufactured using VGXI's expertise in contract manufacturing DNA plasmids for human clinical trials, produced by GMP standards. Such investment and funding support the taking advantage of CDMO services, which are anticipated to boost market growth.
Moreover, strategic activities by the market players, such as facilities and services expansion, are expected to boost the market from 2024 to 2029. For instance, in May 2023, uBriGene, a cell & gene therapy contract development and manufacturing organization (CDMO), expanded into the United States market with the acquisition of a state-of-the-art GMP manufacturing facility from NASDAQ-listed company Mustang Bio Inc. Similarly, in November 2022, Charles River Laboratories International Inc. announced the expansion of its cell therapy contract development and manufacturing (CDMO) facility in Memphis, Tennessee.
Additionally, strategic collaboration by the market players is expected to contribute to the market growth from 2024 to 2029. For instance, in February 2023, Charles River Laboratories International Inc. and Purespring Therapeutics announced a plasmid DNA contract development and manufacturing organization (CDMO) collaboration. Under the terms of an agreement, the Plasmid CDMO alliance supports the first gene therapy platform targeting kidney diseases.
Hence, increasing investment and strategic collaboration are expected to boost the market in North America between 2024 and 2029.
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