Contract development and manufacturing organizations (CDMOs) have been on the rise in the last decade. Historically, CDMOs operated on a business model which predominantly focused on serving as external service providers for manufacturing pharmaceuticals. This model included the addition of capacity by the acquisition of manufacturing facilities from (bio)pharma companies or own capital investments. However, CDMOs have increasingly become innovation leaders and cover more areas of the pharma business, not just manufacturing, opening up additional revenue streams.

This change of focus has been accompanied by a change in the M&A landscape in the market. Some CDMOs are expanding their services and swapping their “contracts” for “partnerships”, evolving the term “CDMO” into “PDMO.” By getting closer to their partners, CDMOs can move past some of the pressure and offer consultative support or innovation to develop products in new ways.
The evolution of the CDMO sector is propelled by rising manufacturing standards, the advent of groundbreaking therapies, and a shift towards personalized medicine.

CHEManager asked executives and industry experts from a broad range of CDMOs to share their views on how their companies are dealing with this changing economic environment and the resulting opportunities and challenges. We proposed to discuss the following aspects:

• (How) have the rules of the CDMO market changed since the pandemic of 2020/21?
• What do you consider the most important growth drivers for CDMOs?
• What is your company’s strategy to grow the market share in the CDMO industry?

Setting New Industry Standards

Martin Meeson: The pharmaceutical industry and CDMO landscape are abuzz with three pivotal themes: GLP-1s, ADCs, and biosecurity. At Axplora, we are leading these conversations and providing unparalleled support to our partners in these critical areas. Our commitment to excellence for our partners means we are focused on speed and reliability in our state-of-the-art services provided from our nine manufacturing sites worldwide.

GLP-1 receptor agonists are revolutionizing treatment for diabetes and obesity, and we are proud to operate in this field. Our teams optimize development and production processes for both peptides and orals to ensure these life-changing medications reach patients quickly and efficiently. We are also making significant strides in antibody-drug conjugates (ADCs) – by combining antibodies with potent cytotoxic drugs, ADCs are transforming cancer treatment. Our expertise allows us to deliver high-quality ADCs with precision, supporting our partners in bringing innovative therapies to market. We are proud to be involved in 6 of the 13 commercial ADCs on the market.

Biosecurity is more crucial than ever, and our comprehensive solutions address the evolving challenges in this domain. From safeguarding pharmaceutical supply chains for patients across the world to ensuring safe production, our biosecurity measures are second to none, with a consistent focus on security of supply of critical medicines. Our global network of nine manufacturing sites showcases our capabilities, including with advanced technologies. We possess skilled experts, who are known to meet the diverse needs of our partners with speed and reliability.