Contract manufacturing
Working with CMOs enables companies to ultimately increase speed to market.
15.32bn The amount
$
the global biopharmaceutical CMO market was valued in 2023. It is projected to be worth $17.56bn in 2024, and
$57.34bn by 2032. Fortune Business Insights
$29.8bn
The amount that Europe’s biopharmaceutical CMO and CRO* market size was valued at in 2023. It is projected to be worth $53.8bn by 2030.
Market Research Community (*contract research organisation)
26
was a key part in this strategy, hence the engagement of partners across four continents. Pennine Healthcare is a prime example of a CMO benefitting from the industry’s appetite for onshoring or nearshoring. Its vast cleanroom facilities, and its expertise in the manufacture of medical device components via injection moulding and extrusion, are in demand among clients seeking access to the UK and EU markets. “Many of our customers, including those in Europe, the Nordics and the Middle East, still value the quality of UK manufacturing, which they see as being of a high standard,” says Cameron. “Our ‘commercial partnership’ services, which include bespoke contract manufacturing, are driven by demand from medtech companies facing global supply chain issues caused by geopolitics, Brexit, Covid, conflicts and fractured supply chains. They want to de-risk and have a partner based in the UK – and close to Europe – as this is very important.” CMOs close to end markets therefore clearly have value, but location alone is not enough. For some OEMs, there is also an advantage around net zero, sustainability, and social value credentials, like building jobs and supporting local communities. Regulatory considerations are also paramount, as is the so-called ‘triple-s’ value-add: safety, sustainability and security of supply. “In particular, a focus on design for manufacturing provides significant value for OEM customers and supports long-term relationships,” says Bradshaw. “Providing a variety of prototypes and services allows customers to work with a CMO through the entire manufacturing process, rather than jumping from a design house to a prototyping firm to a company with metal injection moulding or stamping capability.” Clearly, a multitude of factors go into building long-term relationships – ones in which CMOs not
only have the flexibility to offer a broad range of services, but also the willingness to invest in bespoke processes, or even physical infrastructure dedicated to the needs of a specific client.
“Clients are very keen on the partnership aspect,” adds Cameron, who has overseen the construction of a new cleanroom branded for one of Pennine’s customers. “Information flows both ways because it is not just a transactional relationship.” To put it differently, the best working relationships clearly see the OEM trusting the CMO to add value across the entire product development cycle. All the same, being dependent on a single supplier naturally invites risk, meaning OEMs must choose carefully when consolidating and simplifying their supply chains. Efficiency, risk mitigation, and simplifying the supply chain are the key topics about which OEMs talk to CMOs. Crucially, the one topic that is rarely discussed is one that might seem an obvious priority: cost reduction. In fact, OEMs seem to rarely talk to their outsourcing partners about lowering their cost base, as the emphasis is firmly on expanding their footprint, or adding capability and capacity. Successful relationships are rarely built on a desire to find the lowest price option. Price erosion, in short, is far less important than adding value.
On the other hand, those CMOs that can add innovative processes to the equation – that are, in other words, willing to go beyond their traditional specifications – are those that will flourish. For this to happen in practice, meanwhile,
Verkaik warns that CMOs and their customers need to hone good communication, explaining that communication is the foundation of every good relationship, and relationships are what counts in the outsourcing world. ●
Medical Device Developments /
www.nsmedicaldevices.com
i viewfinder/
Shutterstock.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150
