in

CDMO Trends – Evolution of Global CDMOs

CDMO Trends - Evolution of Global CDMOs

CDMOs – Contract Development and Manufacturing Organizations are the new buzz word in the pharma industry. CDMOs are on the rise over the last decade thanks to the increasingly complex drugs and the expertise required to satisfy the regulatory bodies. New and complex proteins as antibodies are getting more difficult to manufacture in smaller quantities, as these drugs are targeted at smaller populations. Regular drug manufacturing units find it extremely difficult to manage the cost of production of smaller batches.

The regulatory expertise required is another important factor for pharma and biopharma companies to look at outsourcing. Irrespective of the type of business, it is always about getting the products to the market quicker. Therefore, CDMOs are focusing on all three key areas in general, early and late stage development services and regulatory consulting.

The numbers show a clear pattern, top pharma companies are outsourcing more in their pursuit to reduce “time to clinic.” Pharmaceutical companies are focused on getting products to market quicker, and manufacturing for both large and small companies is increasingly being outsourced. Some of the top CEOs of CDMOs cite the regulatory compliance component as one among the most important of their offerings.

The driving factor with respect to outsourcing:
 
When a new drug is discovered it becomes a huge challenge for the pharma companies to manage the costs associated with paying their internal resources or ‘burn rate’. Outsourcing will definitely save on the capital required. However, choosing the right one among the top Global CDMO Companies is an arduous task. The key differentiating factor should be the speed at which a CDMO can get the product to the clinic, as that will dramatically cut down the operating capital required.

This becomes all the more important if we are talking about a small cap pharma company, typical divisions in a small pharma company are product development, process management, manufacturing and quality control. The missing department will always be regulatory affairs. With CDMOs becoming more and more vertically integrated, it becomes easier for small companies to outsource. today most of the CDMOs go by the mantra of “lab to launch”.

 
The Areas of Growth: 

The service areas with increased demands are for designer proteins targeting smaller populations. More so for diseases that lack generic treatments.  Highly skilled workforce that can analyse complex protein forms of an antibody and therapeutic drugs is the differentiating factor among CDMOs, and those with the right expertise are the ones that is undergoing rapid business growth.

Evolving Business Structure of the CDMOs

CDMOs in the past have always focussed on early stage trials and development, as that is a highly profitable service. However, pharma companies today want to stick with the same CDMOs for the entire process. They find CDMOs as a secure launch pad. This has forced all the top global CDMOs to become vertically integrated. This is also going to be the general trend, and we can see more mergers and acquisitions to provide end to end solutions.
 
Therefore, CDMOs are going to become more vertically integrated, and there will be many more mergers and acquisitions in the industry.

What do you think?

Why You Need 3D Architectural Services

Why You Need 3D Architectural Services

Positive Changes to Improve How You Run Your Business

Why a Positive Workplace Culture is Critical and how to Create one