What makes a CDMO stand out?

How to Stand out as a CDMO

The pharmaceutical/CDMO market is traditionally pretty competitive to say the least. However, in recent times we’ve seen massive amounts of cross-company and cross-border collaboration as the industry has come together to try and combat COVID-19.

Another feature of lockdown has been the ability for many to take stock, review their business and make plans for the future, and I was keen to do something similar. So, I reached out to a number of connections who generously agreed to contribute from across the CDMO space to find out a little more about what they think makes a CDMO stand out in today’s market.

I spoke with Fujifilm Diosynth Chairman Steve Bagshaw, CCO of Avid Bioservices Tim Compton and Nick Maragos, VP Business Development from niche CDMO, Northway Biotech. I also spoke with David Bricker, VP Global Head of Manufacturing and Supply Chain at Eagle Pharmaceuticals to see what he looks for from a CDMO partner.

Nick Maragos - Northway Bio Steve Bagshaw - Fujifilm Tim Compton - Avid Bio

To begin, my question was a simple one. What did these leaders think the key attributes a pharma, or biotech company looks for from a CDMO?

Nick from Northway Biotech said that there were some core competencies that a pharma partner would look for such as track record, experience, technical fit, quality and price. He also said

“there are also the softer key attributes such as a synergy with the project teams and an open communication, both on things that are going well and any challenges that may occur with the project.”

This focus on soft skills, or a good relationship, was a theme that ran through all three CDMO leaders’ responses. Steve from Fujifilm was particularly passionate. For him, the thing that sets anyone apart is a personal relationship based on trust. He told me that relationships aren’t based on company-to-company connections, they’re based on passionate individuals. That means those individuals at the CDMO side must have the skills to build relationships

“You could have the best track record in the world, you could have everything else going for you but that connection is the critical piece. People will always ask about your track record in doing whatever it is you’re saying you’re going to do.

So yes, big pharma are looking for a track record and a recognition that you’ve been there and done that. But that’ll get you the visit and then when you begin to build the relationship, that’s when you really do it. “

Size-wise, Avid Bioservices sit between Fujifilm and Northway. As a company that has enjoyed superb growth in the last few years, it’s no surprise that, in addition to relationships, capacity and scalability were what Tim highlighted, particularly in a COVID-dominated world.

“Capacity is a big factor at the moment, because there are still a lot of non-COVID therapeutics that are looking for it, despite COVID occupying such a large part of the development pipeline.”

Tim also mentioned location, which I thought was interesting. Before lockdown, we were reading everywhere about the world being smaller than ever and that location was less important today than it had been before. However, when supply chains are blocked or more difficult to access than previously, Tim felt that being based in the US was becoming more of a differentiator.

I explored this point with everyone else a little further.

The Benefits of Being US Based

All three of my CDMO-based contributors agreed that it was becoming more appealing to be based in the US.

Nick and Northway felt that having a newly formed US presence affords their clients the confidence that their projects are continuing to move ahead and that will remain the case if any global or national event like this were to happen again.

For Tim and Avid, US manufacturing means fewer unknowns for clients. In such uncertain times, mitigating uncertainty and risk is a huge value add that US manufacturing offers. He also mentioned the proximity to the organizations facilitating more collaboration between both parties because

“It allows for real time communication because you’re at most only three hours apart if both parties are operating from the US”

For Steve, the COVID-19 situation has shone a light on the benefits of being made in the US, however for a company of Fujifilm’s size, it’s important not to have all of their eggs in one basket or location.

“It is becoming more important to have U.S manufacturing. But, but for sure we want both, so we want, we want the capability in Europe and the capability in the U.S and I think COVID-19 made us all start working out where our supply chains go.

So, I think it's probably going to be more and more important to make sure that you've got geographically relevant manufacturing, so for that, a U.S base is really crucial.”

The View from Pharma

I put the same questions that I asked Steve, Tim and Nick to David Bricker, VP Global Head of Manufacturing and Supply Chain at New Jersey based Eagle Pharmaceuticals to see if he agreed with our CDMO representatives.

When I asked him what was the priority for Eagle, his response combined the answers given to me by the three CDMO leaders.

“What we look at initially is, what’s their capabilities. Do we have an ability to expand capacity as needed? Do they have a single fill finish site?

You don’t want to be stuck and not able to realize the different opportunities.

I like to be in a space that has the capability, so I can expand my capability. We’re looking at different formats for portfolio growth, so you like to have a bit of a diverse capability, from a format standpoint.

You want to be audited. You want to be able to make the connection with the people that are responsible for supporting and providing the service. I like to be able to go directly to the folks that are actually running the sites.”

On the importance of US manufacturing, David said “it’s all about balance”. India is still appealing due to the lower price point alongside improving site performance but US manufacturing, in light of COVID, was gaining more importance.  

David also thought it it likely that some companies would bring their manufacturing back from overseas to the US, where it was more accessible and supply chain risks are reduced.

He said the ability to collaborate and integrate with US based sites is a huge plus and that with products for some clients, US manufacturing is essential, but that balance is best:

It’s nice to say that I’ve got capability in the US and I’ve at least got the opportunity to establish a similar capability outside the US. There’s enough folks out there that provide that capability, on both sides.”

Even as we start to see a glimmer of light at the end of the tunnel, we’re still a long way from returning to ‘normal’, if ever. In a changing global landscape of shifting priorities and highly volatile market conditions, it’s important that CDMOs like these have a laser focus on the differentiators that enable them to stand out to pharma manufacturers.

I think that this downtime will help a lot of companies rediscover that focus and plan for the period ahead. If that’s you, and you’d like any help adding to your CDMO or pharma teams, feel free to get in touch with me or my team at Metric.