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How to improve relations with bio-CMOs
November 14, 2011
By: Eric Langer
President and Managing Partner, BioPlan Associates
Bad relationships are rarely one-sided. This certainly holds true for the CMO-client relationship, where some might expect the service provider to do the heavy lifting in the alliance. According to data released in our 8th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production,1 that may not entirely be the case. It turns out that more than 9 in 10 CMOs have their own set of problems and reservations about their partners. Some problems are systemic, and not easily resolved with client services or improved management. For example, nearly all (92%) indicated that their ‘clients want to contain costs by doing limited development runs’. Yet, they still expect projects to be successful at full-scale manufacturing. If CMOs are to contain costs by doing fewer runs, they’ll need to be more effective at their process development. In the variability of a biomanufacturing environment, this may not always be possible. This creates friction between the partners’ competing needs. And although some CMOs have more competence at process development than others, such a competitive advantage does not guarantee a successful project. CMOs pointed to another equally systemic client mistake, that ‘clients don’t build in sufficient time for the project’, also cited by 92% of CMOs as either “Very Common” or “Somewhat Common.”1 Significantly, both of these problems also topped the list of the most critical mistakes (measured as “Very Common”). Short-changing the development process was indicated by 74% of CMOs as “Very Common,” and unrealistic timeframes mistake was cited by 60% in this category. The annual study, which received responses from 352 global manufacturing developers and CMOs, quantifies the most common mistakes made by clients as both sides work to improve their relationship amidst economic pressures. The study shows that, partly as a result of the economic crisis, biopharma companies are actively focusing more on productivity, processes and quality. They are becoming increasingly risk- and cost-averse. This can lead to stress and problems in even the best of client-contractor relationships. Indeed, both of the problems that topped the list this year suggest that clients and contractors alike are having trouble setting expectations. Third on our CMOs’ list of most common mistakes made by clients, measured as “Somewhat Common” or “Very Common,” was ‘Clients expect us to resolve the most difficult scientific or technical problems,’ cited by 90% of respondents. This was followed closely by ‘Clients don’t plan their tech transfer process,’ at 88%. Tied for the fifth spot were ‘Clients don’t communicate with us effectively’ and ‘Clients don’t recognize the variability in process development,’ both at 84%. This process development issue (indicated by 46% as “Very Common”) involves cost containment and time-to-project completion, and suggests that the majority of biomanufacturers, under increasing cost and time pressures, are pushing that stress onto their suppliers. Rounding out the top 10 most common mistakes made by clients were:
— Michelle Peake, CEO, Alpha Biologics, Malaysia
— Dr. Rolf Werner, SVP Biopharma Contract Mfg Business Boehringer Ingelheim GmbH Germany
— Sanjay Singh, Head, Biotechnology, Sun Pharmaceutical Industries Limited, India
— Kim Sandell, Director, Operations Management, Pfizer Health AB, Sweden
—Albert E. Schmelzer, PhD, Principal Scientist, Development Process Cell Culture, MedImmune, Gaithersburg, MD
— Alfred Luitjens, Senior Scientist New Technology, Crucell Holland B.V. , Leiden, Holland
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