Custom synthesis (CDMO)

Contract development and manufacturing (CDMO): outsourced making of drug molecules for innovators, a $170 billion business that US-China rivalry is shifting toward India, Korea and Europe.

Fine chemicals · Other fine chemicals · No. 103

• Product family
• not applicable (service business); measured by revenue and reactor or bioreactor capacity
• 48.5 t CO₂e per t

Many of the world's medicines are actually made by firms whose names never appear on the pack.

Chart: Illustration: Custom synthesis (CDMO)

Where it comes from

Chart: Map of where it comes from

Drug companies hand their recipes to contract makers, who scale a molecule from grams for screening to tonnes for patients, in a business worth about $174 billion in 2025.

Three things to know

1. Lonza led the 2025 rankings with CHF 6.53 billion, alongside Thermo Fisher at $7.1 billion and WuXi AppTec at RMB 45.45 billion.
2. The US BIOSECURE Act became law on 18 December 2025, pushing drug makers to look beyond Chinese contractors.
3. Indian CDMOs split in FY26: Laurus CDMO grew 36% while Piramal Pharma Solutions shrank 10%.

The journey

1. 1 Discovery chemistryGrams of candidate molecules for screening
2. 2 Process developmentRoute scouting and scale-up for trials
3. 3 Clinical batchesKilograms of GMP drug substance
4. 4 Commercial supplyTonnes under long-term supply contracts
5. 5 Patent expiryVolumes may shift to generic makers

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