The small molecule Active Pharmaceutical Ingredient (API) market on the U.S. West Coast, particularly in California and Washington, has experienced significant growth in recent years.
In 2023, the West region accounted for 33.19% of the U.S. small molecule innovator API Contract Development and Manufacturing Organization (CDMO) market, underscoring its pivotal role in the industry.
Several factors contribute to this expansion. The increasing prevalence of chronic diseases has heightened the demand for APIs and CDMO services. Additionally, the region’s robust healthcare infrastructure and a strong presence of pharmaceutical companies have fostered an environment conducive to growth.
Companies in the West Coast have been proactive in expanding their manufacturing capabilities to meet this rising demand. For instance, in March 2023, LGM Pharma, a provider of API and CDMO services, reported substantial growth in its API and new CDMO divisions. This growth was bolstered by their acquisition of a CDMO division in 2020 and the subsequent integration of commercial manufacturing, drug product R&D, and analytical testing services by late 2021.
The overall U.S. small molecule innovator API CDMO market is projected to reach USD 12.60 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.17% from 2024 to 2030. This growth is driven by the increasing outsourcing trend among pharmaceutical companies, the rising demand for small molecule drugs, and a surge in clinical trials.
In summary, the West Coast’s small molecule API market is experiencing robust growth, driven by increased demand and strategic expansions by key industry players. Mantell Associates has established partnerships with multiple CDMOs specialising in the Small Molecule API space across Europe, APAC, Africa, and the US. These collaborations enable Mantell Associates to offer tailored services, leveraging our technical expertise and extensive industry network to support clients in achieving sustainable growth.