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Exploring sustainable practices and innovations in pharmaceutical manufacturing through a CDMO’s lens.
October 1, 2024
By: Niall Harkin
Executive Director, Almac Group
The pharmaceutical sector represents one of the most significant global supply chains. From raw materials, active pharmaceutical ingredients (APIs), to finished products, the industry relies on a vast network of suppliers to make crucial medicines for patients. This global nature is undoubtably positive—the wide network of raw materials ensures supply chain resiliency of crucial medicines, drugmakers can leverage specialist services and expertise from all around the world, and most importantly it enables patients to receive vital medicines no matter their geographic location. When it comes to the growing call for climate action, the extensive pharmaceutical supply chain faces a massive challenge that has been met with action. A significant portion of the largest pharmaceutical and biotech companies have published measurable commitments, such as signing up to the United Nation’s Race to Net Zero campaign, which aims to halve emissions by 2030 and reach net zero by 2050. In an encouraging recent survey* by third party research agency Life Sciences strategy group, 80% of pharma and biotech companies feel that the industry is making progress on sustainability. Clearly, the world’s largest pharmaceutical companies are taking sustainability seriously, but they can’t reach their goals alone. Contract development and manufacturing organizations (CDMOs), as significant third-party suppliers to the industry, are seeing firsthand the significant amount of focus and pressure pharma and biotech clients are under to deliver on their net zero ambitions. In fact, a McKinsey analysis of approximately 40 pharmaceutical companies shows that about 75 percent of emissions across the value chain come from suppliers. This is where a CDMO’s commitment to sustainability has become a business imperative. Like the pharmaceutical industry, CDMOs have complex supply chains of their own, from early phase chemical production through to commercial logistics. This poses a twofold challenge for leading companies who must take necessary steps to reduce their own emissions and provide complete data to their pharmaceutical clients, while also accurately measuring and reducing third party emissions from their own suppliers. In the Life Sciences strategy group survey, over half of respondents indicated that their CDMO employed either an “intermediate” or “robust” strategy for sustainability. So, what are CDMOs seen to be getting right?
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