How is CMO Gaining Importance in Global Pharmaceutical Companies?

Pharma Tech Outlook: Pharma Tech Magazine

How is CMO Gaining Importance in Global Pharmaceutical Companies?

Stacey Smith, Pharma Tech Outlook | Monday, August 17, 2020

The role played by the CMO will follow a predictable route—larger CMOs will absorb smaller CMOs. They will come forward to support large pharmaceutical and biopharmaceutical companies.

FREMONT, CA: The pharmaceutical marketplace has changed over the past years as the companies are moving from centralized, internal production to single-source providers or the contract manufacturing organizations (CMO). The reason behind the evolution in the landscape is simple, to cut costs, enhance capacity, and minimize time-to-market. Beyond these criteria, there are other reasons why pharmaceutical companies are relying on the CMO market. CMO initially produced primary packaging, but now, they offer a multitude of services from design and discovery to the final packaging.

Outsourcing to a CMO permits the pharmaceutical organizations to add technical resources without enhancing the overhead cost

s. The result of this is that the pharmaceutical firm does not need to invest in increasing its staff and manufacturing facilities, to add new facilities into the product lines.  The pharmaceutical companies can now concentrate on the leading products regarding R&D and production and leave their secondary and tertiary products to the CMO.

Finished Dosage Form (FDF) Contract Manufacturer

Top Contract Manufacturing Organization Companies


These are the organizations that provide a drug product for the administration to a patient without the need for substantial further manufacturing and often in its final packaged form. The CMO market is, at present, divided almost equally between API manufacturers and FDF manufacturers. Within the FDF contract manufacturing, solid dose compounds at present dominate the market. Anyways, the future growth is likely to be driven by injectables dose manufacturing primarily due to the enhanced focus on the complex disease areas and the growing trend of self-administration.

Although the CMO might likely become an essential player in the pharmaceutical marketplace, different challenges await. The smaller pharmaceutical companies use the services of CMOs more than the large pharmaceutical companies.

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