US Export Plan - Sector Report - Pharmaceutical Services

Key subsectors of focus for the US market

Key subsectors in the pharmaceutical services sector include drug discovery, development and manufacturing services, research, clinical trials, biopharma services including biologics and advanced therapies, and drug delivery. Despite some degree of policy uncertainty across the pharma and associated technology landscape, the sector has been incredibly resilient, experiencing higher levels of R&D spend, and a robust launch pipeline for new medicines and drugs in the US.

There is a strong pipeline of clinical trial activity carried out by clinical research organisations (CROs) in the US including trial design, site management, biometrics and decentralised trials, with the increased use of real-world data and AI to accelerate trials. Trial volumes and sponsor spend have rebounded, supported by a robust pipeline of innovative therapies and a shift toward decentralised and hybrid trial models. CROs are increasingly leveraging advanced analytics, digital platforms, and patient-centric approaches to improve recruitment and retention, while sponsors that design or commission the clinical study are prioritising speed and data quality. This resurgence is reflected in rising deal activity, investment and strategic acquisitions across the US CRO sector, positioning it for sustained growth into 2025 and beyond.^[15] Leading CROs in the US include IQVIA, Syneos Health, Medpace, ICON plc, Fortrea, Worldwide Clinical Trials, Labcorp, PPD, and Charles River Lab, and the main clusters are reported in New Jersey, North Carolina, Pennsylvania, Maryland, Massachusetts and California.

The US drug discovery, development, and manufacturing services sector is expanding rapidly, driven by rising R&D investment, technological advances, biologics, advanced therapies, outsourcing to CDMOs, and rising demand for active pharmaceutical ingredients (APIs). The drug discovery market encompasses the technologies, platforms, services and methods to discover, validate and optimise new medicines, with the broader US drug discovery market projected to grow from $27.4 billion in 2025 to $61.2 billion by 2034, at a 9.3% CAGR.^[16] The US API market is projected to expand from $67.1 billion in 2024 to $117.9 billion by 2033, reflecting a CAGR of 6.5%. This growth is fuelled by rising demand for both branded and generic medicines, the increasing burden of chronic diseases, and continued innovation in biopharmaceuticals, given that APIs are pivotal in treating conditions like cancer, diabetes and cardiovascular diseases.^[17]

Biologics & advanced therapies is also a key growing subsector both globally and within the US. Growth in biologics (drugs or vaccines made from living organisms), cell therapies, and gene therapies is driving demand for specialised manufacturing and testing capabilities.^[18] The US has a large and growing biologics market of $190 billion in 2024, with a particular emphasis on mAbs (monoclonal antibodies) which is driven by the need for targeted therapies for chronic conditions, oncology which is driven by rising cancer incidences^[19], and biosimilars.^[20] The US biologics market has grown 12.5% annually on average over the last five years. One of the largest biologics manufacturing facilities in the world is the Genentech facility in Vacaville, California, part of a significant West Coast commercial manufacturing presence.^[21] This was acquired in October 2024, by Lonza, a Swiss company from Roche, another multinational Swiss healthcare company.