What are “3 Key Trends” shaping the CDMO industry in 2022 and beyond? Vetter Pharma’s senior vice president for key account management, supply chain management and marketing, Carsten Press, shares his thoughts with Contract Pharma.

Sustainability

In response to the massive carbon footprint of our industry,¹ growing numbers of organizations have made maximizing sustainability a paramount goal for their operations. Spurred by initiatives like the EU’s “Green Deal,” these companies are actively adopting a culture of environmental consciousness and seeking new ways to balance economic performance, social responsibility and ecological impact.

As these commitments grow in scale and ambition, supply chain partners will continue to see this trend reflected in RFPs. Biopharmaceutical companies are increasingly seeking partnerships that advance both their business and sustainability goals—whether that be through eco-conscious packaging design, carbon-neutral manufacturing facilities or less resource-intensive operations.

This trend will be particularly relevant for manufacturers. CDMOs will not only need to determine how new customer requirements can be effectively mapped to validated processes, but also adopt their own culture of ecological responsibility. In 2022 and beyond, partners who swiftly and successfully “green” their operations and mindset will increasingly set themselves apart—not only by growing the value of their services, but also by demonstrating their commitment to shared societal wellbeing and environmental health. As biopharma companies, material suppliers and CDMOs work together toward these goals, look for an increasingly green value chain to take shape in the coming years.

Digitization

Long a technological laggard, biopharma has finally begun an overdue, pandemic-fueled digitization sprint. In the last two years alone, countless organizations have raced to virtualize their workforce, take their teamwork to the cloud and leverage technology to keep their operations running while keeping their people safe.

Service providers have been no exception and show no signs of stepping back from rapid digitalization. AI- and ML-powered manufacturing innovations are further gaining ground, with automation and robotics driving significant advances in supply chain productivity. With prolonged pandemic uncertainty, expect to see increasing investment in technologies like these.

Strategic Collaborations

One long-standing challenge also stands in our way: the ever-growing cost of bringing new drugs to market. This year, biopharma companies will continue their efforts to optimize the “total cost of ownership” associated with developing, manufacturing and commercializing their products. This will lead to increasing focus on not just the function but also the value of outsourced partnerships.

As savvy service providers have discovered, biopharma companies are looking for third-party experts who do more than fill an internal skill gap or enable an in-house team to focus on core competencies. These customers are increasingly looking for providers who deliver a strategic, value adding mix of specialized services, customized solutions and efficient operations—one that spans as much of the value chain as possible.

In response, CDMOs strive to actively pursue new partnerships of their own, especially between manufacturers with complementary specialties or additive skill sets. Several high-profile CDMO alliances have already taken shape recently, with the goal of syncing expertise in ways that shorten time-to-market, accelerate technological advances and deliver significant long-term value for customers.

References
1. Belkhir L, Elmeligi A, “Carbon footprint of the global pharmaceutical industry and relative impact of its major players.” Journal of Cleaner Production, 2019, Vol 214, pp 185–194.

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Carsten Press has 25+ years of experience in product and supply chain management for multiple industry-leading enterprises, including Siemens and their earlier subsidiary, Infineon. Since joining Vetter in 2009, he has taken on responsibility for all end-to-end supply chain activities, including central production and capacity planning, global procurement, and logistics. Today, he continues to serve as a senior leader of the Global Sales Organization, Business Development and other multiple key operational functions, with a focus on advancing and expanding Vetter’s core business at global scale.  

Headquartered in Ravensburg, Germany and Des Plaines, IL, U.S., Vetter is a family-owned, global contract development and manufacturing organization (CDMO) with production facilities in Germany, Austria and the U.S. Currently employing more than 5,500 individuals worldwide, the company has long-term experience in supporting biotechnology and pharmaceutical customers both large and small. Vetter services range from early stage development support including clinical manufacturing, to commercial supply and numerous packaging solutions for vials, syringes and cartridges.