How Drug Industry Dynamics
Are Shaping the CDMO Sector
Some biologics developers have begun to contract out more work
to third parties.
By Jean-François Hilaire, Recipharm AB
There continues to be a demand for contractors that offer “full service” manufacturing; however, industry expectations for such suppliers are evolving.
In recent years, many drug companies have
made an effort to reduce the number of suppliers
they work with, forming strategic partnerships
with contractors that offer a broader range of
services. The aim is to speed-up time to market,
increase efficiency, and minimize oversight
While this trend continues, other factors
such as the increasing quality expectation from
customers and authorities and demand for
traceability have emerged, influencing the range
of capabilities that a full-service contractor is
expected to provide.
Further, pricing pressures and consolidation are
changing the dynamics of the sector.
Global Pharma Growth
The global pharmaceutical market is expected to
grow by 33 percent and be worth $1.5 trillion by
2021, according to IQVIA. There are three core
drivers: the aging global population; industry’s
increased focus on high-tech, high-value
medicines; and growing demand for healthcare in
Catering to higher volume demand requires
sufficient manufacturing capacity as well as
capability to address expected quality levels at
controlled costs. Similarly, developing medicines
in line with increasing quality levels relies on
expertise. Additionally, selling drugs in new
markets requires a logistics infrastructure.
The drug industry has responded to these
challenges in two ways: either the company
involved invests in the development and