The pharmaceutical contract development and manufacturing organization (CDMO) market is growing, and with some predicting a compound annual growth rate (CAGR) of 7.29% until 2028, it’s safe to say it’s not slowing down any time soon.

This increasing demand for CDMOs is primarily due to the rapid expansion the pharmaceutical and life sciences industries experienced within the past years. Because of this, many companies have found themselves needing to outsource specific portions of their work to ensure they stay efficient and on schedule while keeping up with an increased workload.

Like any other industry, CDMOs are affected by current events, both positively and negatively.

Let’s examine five trends shaping the current state of CDMOs.

1. Mergers and Acquisitions

Many CDMOs have begun to expand their offerings through mergers and acquisitions. These shifts in the traditional business model allow CDMOs to cover more areas of the pharmaceutical life cycle and meet the needs of companies creating complex drugs. Mergers and acquisitions also bolster CDMOs’ ability to scale their services and advance technologically.

However, this trend does put smaller CDMOs at risk as they may be unable to compete with larger companies’ prices, service ranges, and technology. Not to mention, they may struggle to find skilled employees.

2. Drug Complexity

Drugs are becoming increasingly complex. Many companies have started to develop small-molecule drugs for rare diseases, which often require specialized equipment and expertise.

Due to this, there is a high demand for CDMOs to help organizations meet tight deadlines, stay on budget, and ensure safety while manufacturing these complicated products.

Amid these growing complexities, the high demand for pharmaceutical products, and inflated costs, the need for biopharma contract manufacturing services is at an all-time high.

This white paper explores four factors influencing the growing market and teaches you how to choose the right partner for your organization’s unique goals.

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3. Digitalization and Technology

3. Digitalization and Technology
Similar to previous years, using innovative technologies such as artificial intelligence (AI) and increasing digitalization efforts to boost efficiency is popular amongst the pharmaceutical and life sciences industries.

And with AI being considered one of the most impactful technologies for the pharma market in 2023, CDMOs must know how, when, and why to use it to stay relevant and competitive.

4. Potential Drug Pricing Reforms

Drug pricing reform is a potential disruptor to the entire pharmaceutical industry. With many leaders and citizens pushing for more affordable, controlled drug prices, manufacturers may need to reevaluate their processes to stay compliant with any new regulations.

While there are no definitive policies in place at the time of writing this blog, it’s in CDMOs’ best interest to stay on top of any upcoming legislation or reform efforts and plan accordingly.

5. Continued Supply Chain Issues

Any CDMOs with contracts overseas may continue to experience blocks in production due to issues attaining materials. Some global restrictions may lessen due to the essential nature of pharmaceutical production, but CDMOs should prepare for more roadblocks stemming from the ongoing supply chain issues.

Find The Right Partner for Your Needs

The current state of CDMOs looks bright, especially considering the rapidly growing pharmaceutical industry. Opportunities are abundant for CDMOs and pharmaceutical organizations alike, but there are also challenges.

Finding a commissioning, qualification, and validation partner to help your organization navigate these opportunities and challenges is an excellent way to achieve your goals. However, more than just finding a partner, it’s crucial to find the right partner—one with vast knowledge and hands-on experience.

Our extensive background in CQV helps us lead our biopharma and life sciences clients toward their organizational goals.

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