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?

Building Long-Term Partnerships with Customers

Victor Swint: Formulated Solutions specializes in the innovation, development and manufacturing of medical devices, OTC topicals, nasal sprays, and oral dose liquids. Our strategy to grow our market share in these areas is anchored in our mission, vision, and core values, focusing on speed to market, unmatched quality, innovation, strategic raw material procurement, and exceptional customer service.
Our mission is to enhance and protect the health and well-being of consumers by developing and delivering high-quality products. This mission drives our commitment to speed to market without compromising on quality, which we enable by optimizing our processes and leveraging advanced technologies.

We maintain rigorous quality control measures at every manufacturing stage, ensuring our products meet the highest standards. Innovation is at the heart of what we do. Our innovation and development team continuously seeks improvements in products, processes, and behaviors, enabling us to support our clients with cutting-edge solutions that enhance their success and drive market growth.
By building strong relationships with trusted suppliers and maintaining a robust supply chain, we ensure the availability of high-quality raw materials. This helps maintain product consistency and manages costs effectively, providing competitive pricing without sacrificing quality.

Every member of our team is a valued leader with the responsibility to foster a safe workplace and drive the business forward. Our ‘people first’ principle is reflected in how we work with our customers; we build long-term partnerships by understanding their unique needs and delivering personalized solutions.
By seamlessly integrating speed to market, unparalleled quality, cutting-edge innovation, strategic sourcing of raw materials, and exceptional customer service, we are uniquely positioned to expand our market presence and drive our clients’ success.