HOW IS BIOMANUFACTURING DRIVING CDMO MARKET?

A successful business model for the pharmaceutical industry is driven by the outsourcing trend, making contract development and manufacturing organisations (CDMOS) an integral component of drug development value chains. Increasing regulatory complexity, high development costs, and fierce competition have driven drug companies to leverage CDMOs to accelerate their go-to-market strategy, and Asia Pacific (APAC) is not an exception. Let's navigate through prime achievements and potential trends in the APAC CDMO arena which helped the world heal during the pandemic and is further helping to build a resilient health system.

- Hithaishi C Bhaskar

Companies in the pharmaceutical sector have been facing fierce competition, cost pressure, technological innovations, and increased consolidation activities. Though the demand for generic medicines and biologics is exponential, high capital expenditures to set up complex manufacturing requirements and state-of-the-art technologies can not be ignored. To overcome these scenarios, the pharmaceutical sectors are progressively relying on CDMOs for clinical candidate development, manufacturing, candidate registration, and market authorisation. Pharmaceutical companies are revisiting their cumbersome production processes by exploring CDMO facilities to manage company resources and assets effectively with regulating expenditure.

"CDMOs like us have the technical expertise, knowledge, and GMP facilities to deliver cost-effective development and manufacturing services. Outsourcing to a CDMO means you can expand your technical capabilities without the burden and associated risks of investing in expensive equipment" says Rutger Vandiest, Director of Business Development, Jabil Healthcare.

Through CDMO outsourcing, companies can cut down substantial capital investments in building in-house technical strengths and focus on pipelines and commercial priorities. Thus, CDMO is destined to share the major segment of pharma/Biopharma production stage activities owing to the factors such as the high demand for end-to-end services in big pharmaceutical companies, execution costs, growing pricing pressures, and pipeline challenges.

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