Once a purely in-house activity, drug production is increasingly being outsourced to third parties, and the trend doesn’t show any signs of letting up anytime soon. As the pharma industry matures and evolves, government regulation and competitive market dynamics are pressuring the profit margins of once-untouchable blockbuster products. Many companies, seeking to focus on core research competencies, lean increasingly on CMOS as a means to make their businesses leaner. This has created fierce competition as existing CMOs work to scale their capabilities to serve an increasingly crowded and complex sector. In addition, new players view this as an opportunity to jump into the fray in what is viewed as a growing market. From the most well-established blue chip pharmaceutical manufacturer, down to the plucky start-ups, the CMO model is finding traction. As the Biopharma Reporter explains, “[c]heaper disposable manufacturing techs and increased demand for outsourced production will see more CMOs enter the contracting sector.”
More companies are leveraging the expertise of CMOs in a myriad of ways, and for a slew of reasons as unique as their product mix. CMOs are typically specialized and focused on improve and advance products ultimately driving efficiency, productivity, and mitigation of risk.
Manage Costs
- Avoid the cost of additional manufacturing investments
- Ensure cost effective strategies
- Additional capital operating costs not required
- Existing staff can focus on other production or tasks
Mitigate Risk
- cGMP manufacturing environments ensure quality compliance
- Rapid execution of time sensitive projects – SPEED TO MARKET
- Ensure product validation
- Free up resources and people assets.
- Compliant to quality standards and regulations
- Robust process controls
Increase Productivity
- Improved time-to-market for products
- Gain strategic partnerships with industry experts to fill capability gaps
- Greater supply chain flexibility
- Increase operational efficiency both downstream and upstream
- Ability to scale up process to production
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