Latin America's CMO, CDMO Segments Gain Ground

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Researched by Industrial Info Resources (Sugar Land, Texas)--The global contract manufacturing (CMO) and contract development and manufacturing (CDMO) industry is in the midst of an expansion cycle fueled by GLP-1 medicines, antibodies and the search for capacity closer to the customer. The trend is unfolding on three fronts: large-scale biologics, peptides and sterile injectable products.

In Latin America, the CMO and CDMO segment of the pharmaceutical industry is beginning to gain relevance. Industrial Info Resources' database currently tracks more than US$310 million in active projects at CMO plants. More than three-quarters of that amount falls under the final-formulations subsector, complemented by life-science packaging and cosmetics. By country, Brazil accounts for 48% of the investment, followed by Costa Rica with 19%, Colombia with 15% and Mexico with 10%.

CDMO plants represent more than US$224 million in the region. Medical devices make up 80% of that investment, followed by pharmaceutical ingredients at just over 17%. Costa Rica leads this category with more than half of the total, as it continues to establish itself as a major medical device manufacturing hub in Latin America. Mexico follows with 26% of the investment and Brazil with nearly 20%.

Among the notable investments in Brazil, Klockner Pentaplast do Brasil plans to invest more than US$40 million in a new CMO packaging plant for pharmaceutical preparations in Aparecida de Goiania, expected to start operations in 2028. Amoveri Farma plans upgrades of more than $40 million at its oncotherapy drug-ingredient plant in Itajai by 2027. Also worth noting are improvements at production plants operated by Unither in Barretos, Pharlab and Momenta, along with new packaging lines at Catalent's Indaiatuba site.

Other examples include an ethylene oxide sterilization plant expansion that Centerpiece plans to open in 2028 in Tijuana, Mexico. In Colombia, Laboratorios Coaspharma expects to carry out a three-phase, US$30 million expansion of its pharmaceutical formulations plant in Bogota between 2027 and 2031. And also in Mexico, Drugmex is planning a two-phase, US$10 million expansion of its lyophilized injectables plant in El Marques.

Subscribers can access details of these and similar projects, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Many of these projects align with global demand for high-potency active pharmaceutical ingredients and oncology, which is the case with Amoveri in Brazil, as well as with the lyophilized and sterile injectable expansions in Mexico and Argentina. Peptide CDMOs, including those serving the much-talked-about GLP-1s, and contract biologics are expected to develop as well. The region already has biologics capacity, but growth in outsourced services for this segment is still to come and it is a recent niche with the potential to begin growing in Latin America.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).