The CDMO Model And Outsourcing Development

In 2014, the biopharmaceutical industry witnessed more and more contract suppliers take on the CDMO (contract development and manufacturing organization) acronym to identify their ability to assist at the development stage of drug manufacturing. These businesses can provide comprehensive services, from drug development through to manufacturing commercial supply, and are interested in differentiating their abilities from CMOs focused solely on large-scale manufacturing projects.

Theoretically, the CDMO is positioned for a strategic partnership, with expertise in areas the drug innovator seeks, whereas the CMO may be viewed as a tactical provider that has the available capacity to compete for the project. This perception has influenced many contract manufacturers to embrace the CDMO term as an additional advantage in the effort to develop long-term partnerships.

Utilizing a CRO or CMO for early-stage analytical, stability, preformulation, formulation development, and drug delivery method has become more common in the pharmaceutical industry and is anticipated to increase as the strategic partnerships between drug innovators and contract suppliers mature. This creates more opportunities to secure business from drug innovators across the drug’s life cycle. In 2014, Nice Insight began tracking the development offering separately from commercial-scale production in order to keep abreast of buyer activities at the development stage and to identify whether CMOs offering development- stage services would have an advantage over the competition when it comes to strategic partnerships.

REad more at: The CDMO Model And Outsourcing Development By Kate Hammeke, contributing writer, Life Science Leader

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