How is Outsourcing Benefitting Pharma and Biotech?

Pharma Tech Outlook: Pharma Tech Magazine

How is Outsourcing Benefitting Pharma and Biotech?

Pharma Tech Outlook | Wednesday, July 08, 2020

With the world’s population aging and healthcare standards continuously rising, the demand for pharmaceutical products has been steadily increasing across the globe.

Fremont, CA: Reciprocating to the market trends of increased demand, the landscape for contract development and manufacturing organizations (CDMOs) is evolving to meet the new customer expectation. The pharma industry has been booming since the turn of the century, with layoffs, mergers and acquisitions (M&A), and outsourcing activities turning to be a common-place occurrence among its vast network of companies. Believe it or not, this will emerge to be a more sustainable industry that is yet to be determined.

Outsourcing activities have become a massive piece of the pharma pipeline, and contract research and contract manufacturing organizations (CROs/CMOs) are at present an integral part of the pharmaceutical industry. CROs and CMOs do not only benefit from growth opportunities, but they also face some new challenges. 

Top 10 Pharma and Life Science Outsourcing Consulting/Service Companies in Europe - 2020The modern CDMO’s must provide flexibility, collaboration, and innovation, which means it has to evolve their capabilities continuously to ensure the robust delivery of drug development and manufacturing services. The clients are looking for everything, starting from fully integrated services to individual offerings. The CDMO sector also has to quickly respond to the new challenges, specifically as drug development campaigns are becoming complex. Along with complexity comes a greater need for CDMOs to provide adequate process solutions and rapid innovation for delivering all of these new and sophisticated drug products. To attain these higher standards, modern CDMOs has to be technologically progressive and flexible, combining professionals from multiple disciplines to actively find solutions that increase the overall efficiency of their projects.

In such a competitive area, most pharmaceutical companies require advanced supply chain opportunities to optimize the development of their molecule, which has led to a lot of firms seeking partnerships with CDMOs as opposed to just investing internally on infrastructure.

The CDMO industry today is a very fragmented space. This has started to change, furthermore, as more mergers and acquisitions take place in the CDMO sector, with substantial consolidation expected shortly. This is in line along with the preferences of many pharmaceutical companies; more and more customers are choosing to outsource to one full-service CDMO rather than several niche providers, as this simplifies the supply chain and can reduce time to market. Besides, to help bolster and expand their capabilities, many larger CDMOs are acquiring smaller, niche facilities in multiple locations, a trend we will see continue.

See also: Top CMOs

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