The Evolution of the CDMO Industry

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.

In this article in CHEManager International, Veranova’s Senior Vice President, Chief Technology Officer, Rohtash Kumar, shared his thoughts on the evolving CDMO industry,

“Rapid development and scale-up of Covid-19 vaccines redefined the industry’s expectations on drug development timelines. With an increasing focus on fast-to-clinic strategies, CDMOs require expertise and technologies to meet speed, flexibility, and safety demands. These strategies must accelerate development without negatively impacting safety, efficacy, and regulatory compliance.”