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?

Driving Growth through Collaborative Innovation

Tom Wilson: Pfizer CentreOne is a global CDMO, leveraging Pfizer’s scientific and technical expertise. We offer contract development and manufacturing services for oral solids, sterile injectables, small molecules, biologics, and regulatory services. The most important growth drivers for CDMOs include innovation, quality, and strategic partnerships and at Pfizer CentreOne we leverage these drivers to grow market share in the CDMO industry

We prioritize quality and reliability from development to commercialization, understanding that for the patient, time is life. Supply chain reliability and management are significant challenges today. However, Pfizer’s extensive upstream relationships with suppliers of raw materials, active ingredients, biological drug substances, and componentry provide a competitive edge. These pre-approved, audited, and evaluated relationships allow us to bypass lengthy approval processes and deliver timely solutions, showcasing Pfizer’s robust quality systems.
Manufacturing at Pfizer focuses on cost, quality, and customer service. Our upstream relationships enhance quality and customer service, reducing costs. Pfizer CentreOne utilizes the same workspaces globally for both Pfizer products and CDMO services, ensuring consistency and high standards. This means client partners benefit from state-of-the-art facilities and rigorous maintenance.

Pfizer’s commitment to innovation merges our scientific expertise with that of our client partners, fostering groundbreaking outcomes. By leveraging Pfizer’s scientific capabilities on behalf of other companies, Pfizer CentreOne differentiates itself in the CDMO industry and drives growth through collaborative innovation. This strategic integration of quality systems, innovative science, and efficient supply chain management positions Pfizer CentreOne as a leader in the CDMO market, delivering exceptional value to its clients.