Contract development and manufacturing organizations (CDMOs) are integral to the pharmaceutical value chain. From the emergence of the industry in 1996 to the 2007 financial crisis through to the Covid-19 pandemic and beyond, the CDMO sector has developed rapidly over the last three decades.

Over time, CDMOs transformed significantly, prompting a recalibration of leadership requirements. Are existing structures and leadership expertise equipped to navigate the complexities of the CDMO business and guide organizations successfully through transformation? A recent report by consulting company WittKiefer investigated the current state of leadership within CDMOs, examining both executive leadership and board levels, and its implications for organizational success.

The key message of WittKiefer's survey is that CDMOs need to work on leadership retention, integrate leaders with diverse skill sets into their organizations, and foster more diverse leadership bodies that support gender parity and include a broad range of backgrounds and perspectives.

Amidst many external market fluctuations, the CDMO industry must also contend with high turnover which has resulted in significant challenges for all leadership roles and leading to a dynamic talent pool and a constant, rapid recalibration of leadership profiles and competencies required for success. This constant flux not only underscores the competitive nature of the industry but also necessitates adaptability and agility from executives at all levels.

Historically, CDMO leadership has been business-focused, structured around general managers. This approach is now showing competency gaps in the face of rapid market evolution, the executive search and leadership advisory said. To thrive, CDMOs need leaders skilled in digital transformation, AI, ESG/sustainability, and advanced therapies like cell, gene, and mRNA therapies.

CDMOs must also invest in succession planning, leadership development, and mentorship programs to retain top talent and build resilient leadership teams.

By proactively addressing in the key areas described above and investing in their people, culture, processes, and technologies, CDMOs can enhance their competitive edge, position themselves for long-term success, and consistently deliver exceptional value to their clients while serving as catalysts for industry innovation and efficiency. In doing so, they can have a far-reaching impact on patients and communities by enabling faster access to lifechanging therapies.

The complete report can be accessed here.