Why is CMO Significant in Global Pharmaceutical Companies?

By CIOReview | Thursday, November 28, 2019

A predictable route will follow the role played by the CMO—larger CMOs will absorb smaller CMOs. They will develop support for large pharmaceutical and biopharmaceutical companies.

FREMONT, CA: Over the past few years, the pharmaceutical marketplace has changed as companies move from central, internal production to single-source providers or contract manufacturing organizations (CMOs). The explanation behind the landscape evolution is plain, cutting costs, boosting efficiency, and minimizing time-to-market. There are other reasons beyond these criteria why pharmaceutical companies relying on the CMO market. CMO at first produced primary packaging, but now, they provide a multitude of services from design and discovery to the final packaging.

Outsourcing to a CMO enables pharmaceutical companies to add technical resources without rising overhead costs

As a result, the pharmaceutical company does not need to invest in growing its employees and production facilities in order to add new facilities to the product lines. Pharmaceutical companies can now concentrate on the leading R&D and production products and leave their secondary and tertiary products to the CMO.

Finished Dosage Form (FDF) Contract Manufacturer

These are the organizations that provide a patient with a drug product to be administered without the need for substantial further production and often in its final packaged form. Currently, the CMO market is divided nearly equally between manufacturers of APIs and FDFs. Solid dose compounds currently dominate the market in the manufacture of FDF contracts. Nevertheless, injectable dose manufacturing is likely to drive future growth primarily due to the increased focus on the complex disease areas and the growing self-administration trend.

Although the CMO is likely to become a key player in the pharmaceutical marketplace, there are different challenges ahead. The smaller pharmaceutical companies are using CMO services more than the big pharmaceutical companies.

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