A Jefferies report highlights robust growth in contract development and manufacturing organizations (CDMOs), fuelled primarily by rising demand for biologics including monoclonal antibodies and antibody-drug conjugates. CDMOs now capture nearly half of global pharmaceutical production, with biologics-focused services expanding at triple the overall rate. Challenges remain including tariff impacts and foreign exchange volatility, but long-term contracts and quality are driving market consolidation and capacity expansion to meet complex biologics manufacturing needs.