The pharmaceutical industry has been growing at a record-high rate for more than a decade. On top of that, the COVID-19 pandemic has acted as a catalyst to further elevate the demand for innovation, research, development, and ramped up production of effective drugs. Hence, the demand for safe and reliable drugs and medical devices has compelled pharmaceutical companies to join hands with CDMOs.
But what are CDMOs? How do pharmaceutical companies benefit from strategic partnerships with them? We’re covering all you need to know in this article — so keep reading.
What’s a CDMO?
CDMO stands for Contract Development and Manufacturing Organizatin. They provide research, development, and manufacturing services. In the medical industry, they allow pharmaceutical companies to outsource their R&D, manufacturing, and even packaging needs. CDMOs have all the necessary equipment and a high production capacity to meet the manufacturing needs of large pharmaceutical companies.
CDMOs can be responsible for everything from designing, developing, prototyping, validating, testing, manufacturing, to delivery. However, pharmaceutical companies don’t have to pay for all of these services. They can outsource certain parts of their drug development and production process for increased efficiency and lower costs.
Benefits of a Strategic Partnership with CDMOs
Conducting research, development, and manufacturing effective and safe-to-use medicines is a complicated and multifaceted process. Besides lots of funding, it requires a large skilled staff and high-tech equipment. Rather than investing large amounts of capital to buy expensive equipement and hire staff, pharmaceutical companies can simply “rent” those resources by partnering with a biologics research and development CDMO.
Often, these contracts are worth millions of dollars and involve years of partnership.
1. CDMOs Deal With the Legalities
Besides R&D and manufacturing, CDMOs also take care of the regulatory framework and FDA requirements associated with developing medicines and medical devices. Outsourcing all of these worries to a CDMO, pharmaceutical companies can continue to focus on their main line of business with optimized costs and time-saving.
2. CDMOs Allow Scaling Production Without Investing
Traditionally, any company looking to ramp up its production would need to invest in a new plant and another group of skilled workers. However, CDMOs allow you to seamlessly scale production without investing capital into expensive machinery or taking on new staff. You simply have to “hire” a larger production package and you’re set!
Without taking on the expense of plant ownership, your business runs leaner and more efficiently. It’s also more freeing for a business since it can choose to cut back on production any time in the future without having to worry about idle workers and machinery.
3. Access to Experienced and Dedicated Professionals
CDMOs have some of the highest-skilled and most experienced employees. Since they’re responsible for the research and development of drugs for their partner pharma companies, CDMOs can’t make any compromises on staff quality.
They have qualified engineers with decades of experience and specialization in a single area of work. Through a CDMO partnership, your business gets exposure to these brilliant minds who will be working on your future products. Therefore, partnering with the right CDMO can make or break a company.