Pharmaceutical Outsourcing in conjunction with SCORR Marketing recently conducted a survey of pharmaceutical industry professionals to determine how companies select CDMOs and CMOs; how and how often companies outsource, and how they prefer to search for information about CDMOs and CMOs; and to identify any differences between the perspectives of those who work for companies that outsource (pharmaceutical and biopharmaceutical companies) and those who work for CDMOs and CMOs (manufacturers).
Key Findings
Selecting a CDMO/CMO
Short List – Creating a short list of prospective CDMOs or CMOs is about who you know. When asked to identify what sources are used to create a short list, the top three answers given were existing relationship, prior relationship, and referral from trusted colleague.
The Right Stuff – When evaluating a CDMO/CMO, the top two attributes that outsourcing companies look for are quality of staff/technical expertise and capabilities/innovative technologies.
The Wrong Stuff – Poor communication is the most prevalent deficiency identified by outsourcers when working with a CDMO/CMO, but quality issues are what is most likely to push an outsourcer to consider switching to another manufacturing vendor.
Client Relationship Models
One-Stop Shopping – More outsourcers prefer using multiple specialized vendors to a one-stop shop, but manufacturers believe that outsourcing companies prefer using a one-stop shop that integrates offerings.
- Very few outsourcers work with just one CDMO/CMO. A majority use either two or three and most expect to increase the number of outsourcing partners they work with over the next three years.
- The top two observed benefits to the one-stop shop model are improved quality management and reduced burden of technical transfer.
- One-half of outsourcing companies review and evaluate their outsourcing relationships on an annual basis.
Making Connections
What – Outsourcers rated as most important information about new technologies/equipment from manufacturers.
When – In a word: monthly.
How – Websites are the preferred format for all respondents. Outsourcers also favor white papers, articles, and podcasts/ webinars as means to receive information about and from CDMOs/CMOs. Manufacturers’ preferences for blogging or social media are not matched by those on the receiving end of the information, although LinkedIn was identified as the most utilized social media platform. Outsourcers also prefer scientific journals to any other types of publications.
Where – Conferences/trade shows and websites are both the top two sources of information about CDMOs/CMOs and the top two outlets for manufacturing companies to share information about themselves.
- Conferences– Overall, survey participants indicated the AAPS conference is the most attended conference of the 13 conferences listed.
- Among outsourcers, AAPS and BIO tied for first.
- Among manufacturers, CPhI was first, and AAPS and DCAT tied for second.
Technologies and Trends
When asked to rate the importance of eight technology trends with respect to the impact on their business in the next 12 months, CDMOs/CMOs assigned process optimization the highest rating. Biologics continuous manufacturing was given the lowest rating.
In rating the importance of six economic, political, and trade issues with respect to the impact on their business in the next twelve months, regulatory changes was the highest rated issue by a large margin. Brexit and the EMA move were rated least important.
Based on communications with clients, CDMOs/CMOs identified two areas where they most need to grow their capacity: high-potency APIs and specialized formulation capabilities. Cold chain logistics and storage solutions was the area where the fewest respondents expect a need for increased capacity.
Slightly more than one-half of those surveyed believe that outsourcing levels to CMOs/CDMOs will increase in the next three years. However, CDMOs/CMOs are more optimistic.
Conclusions
There are significant gaps in perspectives between outsourcers and manufacturers. For example:
- One-stop shops are not as important to outsourcers as manufacturers expect.
- To develop their short list of prospective manufacturers, outsourcers rely on supplier directories, trade publications, and trade shows much more than manufacturers would have presumed.
- When it comes to attributes that outsourcers prefer in a partner, manufacturers overestimate the importance of cost and underestimate turnaround time.
- Outsourcers believe poor communication is the biggest deficiency they see in their relationships with manufacturers; on the other hand, manufacturers expected that inaccurate quoting and scope changes would be the No. 1 reason outsourcers would consider switching to a different CDMO or CMO.
Manufacturers need to be focused on developing long-term relationships: The business is still largely relationship driven.
High-potency APIs and specialized formulation capabilities have been identified as having growth potential.
Manufacturers will be well served reaching out to outsourcers where, when, and how these outsourcers want to learn about them. Because this survey identified a disconnect in the outsourcers’ and manufacturers’ perspectives in these areas, manufacturers might find it advantageous to reevaluate their marketing approach.