CDMOs allow cos optimise resources, focus on core competencies

THE pharmaceutical industry has undergone significant transformations in recent years, with one of the most notable trends being the rise of Contract Development and Manufacturing Organisations (CDMOs).

- DR TANWEER HAIDER

CD These specialised entities have become integral to the drug development and production process, offering pharmaceutical companies a range of services from early-stage research to commercial manufacturing. This manuscript explores the factors driving the growth of CDMOs, their impact on the pharmaceutical landscape, and the challenges and opportunities they face in an evolving industry.

MOs have their roots in the traditional Contract Manufacturing Organisations (CMOs), which primarily focused on production services. However, as the pharmaceutical industry's needs became more complex, these organisations expanded their capabilities to include research and development services, giving rise to the modern CDMO model.

Increasing Complexity of Drug Development: Modern drug development involves more intricate formulations, biologics, and personalised medicines. According to a report by Evaluate Pharma, the share of biologics in the top 100 pharmaceutical sales increased from 24% in 2010 to 49% in 2022, requiring expertise that CDMOs can provide.

Rising Costs of R&D: Developing a new drug is expensive, with estimates suggesting an average cost of $2.6 billion per approved drug (Tufts Center for the Study of Drug Development). CDMOs help mitigate these costs by offering economies of scale and expertise.

Pressure to Reduce Time-to-Market: Speed is critical in the pharmaceutical industry. A study by McKinsey found that leveraging CDMO partnerships can cut development timelines by 20-30%, providing a competitive advantage.