Thermo Fisher Scientific projects a positive outlook for its CDMO services, influenced by industry dynamics and geopolitical factors. The now complete acquisition of Catalent by Novo Holdings is expected to reduce competition for Thermo in the CDMO sector.

As the demand for advanced therapies continues to grow, CDMOs are fast becoming the solution for biopharma companies that need specialized expertise and capabilities that are scalable for their drug development and commercialization.

In addition to rebranding itself from BioDuro-Sundia, BioDuro, the global contract research, development and manufacturing organization (CRDMO) announced it has achieved Gold Medal ratings in the 2024 EcoVadis sustainability assessment for its Jiangsu and Shanghai Free Trade Zone (FTZ) sites in China.

The European CDMO industry is undergoing a significant transformation, driven by a shift toward localized manufacturing. In a bid to enhance supply chain security, ensure compliance with EU regulations, and improve logistical efficiency, the industry has seen a rise in "friend-shoring", whereby European companies are increasingly favoring European neighbors over those on other continents.

Biomanufacturing CDMO, National Resilience, has announced plans to lay off approximately 105 employees at its Alachua, Florida facility as part of a strategic pivot away from government business toward commercial development and manufacturing. The restructuring coincides with a leadership change, as CEO Rahul Singhvi steps down and is replaced by William Marth. However, the company will continue to expand elsewhere, including a USD 225 mn investment in Cincinnati and creating 440 new jobs at its West Chester, Ohio facility.

Massachusetts biotech Agenus is undergoing its second reorganization in 16 months, pivoting to include CDMO services at its 25,000-square-foot Berkeley clinical facility and 83,000-square-foot Emeryville commercial plant for third-party biologics manufacturing.

Californian-based, SK pharmteco, has announced a brand unification initiative, bringing together several respected organizations under its umbrella to create a global CDMO. SK biotek, SK biotek Ireland, Center for Breakthrough Medicines, Yposkesi, AMPAC Fine Chemicals, and AMPAC Analytical, will now combine to operate as SK pharmteco, providing a comprehensive range of services from early-stage development to commercial manufacturing and analytical testing.

Swiss manufacturing company, Lonza, has announced a strategic shift to focus on its CDMO business. The company will restructure its existing CDMO business into three new units - integrated biologics, advanced synthesis, and specialized modalities - as it focuses on its ambition to achieve and maintain leadership across therapeutic modalities.

Overall, 2024 was a good year to be working in the CDMO industry, but will the outlook stay positive for 2025?

Forecasts predict a steady rise in continuing growth trends from 2024, with estimates indicating the global pharmaceutical CDMO market is set to grow from USD 184.90 bn in 2024 to USD 197.40 bn in 2025, and looking further ahead, predicted to reach USD 368.70 bn by 2034.

CRDMO BioDuro has announced the appointment of Alan Findlater as their new CCO, who brings over 25 years of senior commercial leadership experience in the life sciences and pharmaceutical services industry to his new role. Findlater has experience leading high-performing teams and managing complex product and service portfolios, with his expertise also extending to executing successful strategic growth initiatives on a global scale and building high-value partnerships with industry leaders such as Amgen, Pfizer, and Roche.

The KPMG 2024 Life Sciences CEO Outlook report reveals that despite economic and geopolitical uncertainties, many CEOs remain optimistic. Growth prospects, new technologies, business models, and sustainability all feature within the report. 79% of CEOs expressed confidence in their companies' growth, with many planning to expand their workforce and engage in acquisitions.

Celltrion, a leading South Korean biosimilar developer, has announced plans to enter the CDMO market, investing 1.5 trillion won (USD 1 bn) to construct a 200,000-liter production facility in Korea.

To support this expansion, Celltrion will open R&D centers in India, the US, and Europe, hiring 500 Ph.D.-level researchers, aiming to offer a comprehensive range of CDMO services related to monoclonal antibodies, bispecific antibodies, and ADCs.

BMS has announced plans to lay off 195 employees across its two facilities in Lanceville, New Jersey as part of a broader cost-cutting initiative. In addition to the New Jersey layoffs, BMS had previously announced plans to reduce its global workforce by approximately 3,300 positions, representing about 5% of its total employees.

The term CDMO has become ubiquitous in the pharmaceutical industry over the past decade, but is it merely a buzzword or does it represent a genuine paradigm shift?

Historically, service providers were identified as CROs (Contract Research Organizations) or CMOs (Contract Manufacturing Organizations), with each representing a clear delineation of services. As the biopharma landscape has evolved in response to changing industry dynamics, service providers have evolved to become "one-stop shops" capable of providing services for compounds through all development phases and into post-launch manufacturing.

If you were to launch a biopharma startup today, where would you find the skills, talent, and space to bring your vision to life? Biopharma incubators are usually the answer.

These facilities provide an essential foundation for emerging companies, hosting the vital resources and support needed to drive the development of groundbreaking therapies. Programs like JLABS, BioLabs, and LabCentral provide startups with fully equipped labs, cutting-edge technologies, and access to networks of investors, mentors, and industry experts who can help turn ideas into reality.

Novo Nordisk has announced plans to gradually discontinue the production of human insulin pens worldwide, transitioning to offering human insulin exclusively in vial form. The strategic move comes as the company focuses on expanding manufacturing for its popular obesity and diabetes injections, such as Wegovy and Ozempic.

Thermo Fisher Scientific is restructuring its viral vector services, resulting in the closure of its Cambridge, Massachusetts facility and the elimination of 160 jobs, as part of a broader strategy to consolidate operations and enhance efficiency in viral vector manufacturing.

Viral vector development CDMO, Matica Biotechnology Inc, has signed a Letter of Intent to allow U.S.-based biotech, KaliVir Immunotherapeutics, to develop advanced cancer therapies using Matica Bio’s Vaccinia Enhanced Template (VET™) platform.

The collaboration aims to accelerate the development of KaliVir's oncolytic virus therapies by focusing on a new manufacturing process using Matica Bio’s proprietary MatiMax™ cell line for the process.

Laboratorios Farmacéuticos Rovi, the Spanish headquartered pharmaceutical manufacturer, CDMO and R&D company, has decided to retain its CDMO business after evaluating several non-binding offers and deciding that continuing with its current strategic plan will maximize value for its existing shareholders.

Rovi had previously explored the potential of a sale of its CDMO segment - which includes manufacturing COVID-19 vaccines for Moderna – but rejected all five offers from potential buyers.

Vernal Biosciences has appointed Jim Petrilla as CEO and Board Member, as the company focuses on strategic growth as an mRNA and lipid nanoparticle (LNP) manufacturing leader.

With over 25 years in biopharma and clinical research, Petrilla brings a wealth of operational excellence expertise in leadership roles at major biopharma firms such as Bristol-Myers Squibb and Becton Dickinson, where he spearheaded transformative projects, achieved substantial revenue growth, and led a global NDA filing.

Petrilla succeeds founder Christian Cobaugh, Ph.D., who will now focus on his role as Chief Scientific Officer within the company.