What are “3 Key Trends” shaping the CDMO industry in 2023 and beyond? ACG’s vice president of sales for Americas, Rafael Costa, shares his thoughts with Contract Pharma.

High demand for flexible CDMOs with advanced capabilities and technology
As the molecules used in drugs become increasingly complex, CDMOs with advanced capabilities and technology are likely to be in high demand. This includes CDMOs with expertise in areas such as biologics manufacturing, high-potency drug development, and continuous manufacturing. Those CDMOs which evolve to support complex supply chain management, compressed timelines and evolving regulations yet continue to introduce solutions to market faster will succeed. There is a growing need for flexibility and agility. Pharmaceutical companies will seek out CDMOs with the production technology to switch lines to new production requirements, or where they can quickly scale production up and down.

Increasing globalization
The combination of ongoing demands for advanced medicines, particularly in emerging economies and the drive to reduce manufacturing costs, has seen companies moving manufacturing facilities to new and different locations. This trend is likely to drive increasing demand for CDMOs with a global presence, and those with the ability to provide services to multiple regions. However, we should not ignore the fact that local manufacturing in the U.S. (post-pandemic) is also another key trend, with the government analyzing methods to incentivize the pharmaceutical industry to be less dependent on outside markets.

Increasing use of outsourcing by small and mid-sized companies
In addition to large pharmaceutical companies, small and midsize companies are also increasingly outsourcing their drug development and manufacturing to CDMOs. And, as before, those CDMOs which can provide services tailored to the needs of small and mid-sized companies are likely to be in greater demand.