Consolidation of the CDMO industry: Opportunities for current players and new entrants

The pharmaceutical contract development and manufacturing organization (CDMO) industry is extremely active and is heating up with consolidation and diversification.

Decades ago, the CDMO industry started out as a niche service, offering additional manufacturing capacity or specialty services to pharmaceutical companies.

Its rise was fueled by pharmaceutical industry failures – in the past, pharmaceutical companies often installed dedicated manufacturing capacities for innovative drugs in development. But, with many failures during phase III of clinical research trials, it was realized that additional manufacturing capacity for the specific drugs was no longer needed. To reduce the risk of expensive overcapacities, the demand for outsourced manufacturing has been rising continually.

With this growth, the industry is also seeing accelerating global consolidation, and in this report, EY-Parthenon Partner Jörn Leewe explores winning CDMO strategies.

View the full report.