The pharmaceutical sector is experiencing a dramatic change as contract development and manufacturing organizations (CDMOs) transform from service providers into strategic partners in drug development and manufacturing.
A recent report highlights the growing reliance on CDMOs as pharmaceutical companies seek to streamline production, boost efficiency, and accelerate the delivery of life-saving treatments. Rising research costs, stricter regulations, and increasing demand for faster innovation drive this shift.
How CDMOs change the pharma game
Unlike contract manufacturing organizations (CMOs), which concentrate only on producing medical devices, pharmaceuticals, and other outsourced health-related items, CDMOs manage both product development and production.
CDMOs provide comprehensive end-to-end solutions, including clinical trial support, formulation development, supply chain management, commercial packaging, regulatory compliance, and other services. These firms help bridge the gap between drug discovery and commercialization by leveraging their specialized expertise, cutting-edge technology, and scalable infrastructure.
Fortune Business Insights projects the global CDMO market size to surpass $465.14 billion in 2032, with North America dominating the market with a 38.7% share. The increasing complexity of novel drug development, the need for faster go-to-market strategies, and the expansion of biopharmaceuticals into emerging markets further boost the global demand for CDMO services.
CDMOs implement a “one-stop shop” model that reduces the need for pharmaceutical companies to invest heavily in in-house manufacturing. This lowers costs and enhances supply chain resilience and regulatory compliance, ensuring that drugs meet the stringent guidelines set by agencies such as the EMA and FDA.
Key drivers behind the CDMO surge
The report also highlights several critical factors expanding the CDMO industry, including drug development’s rising cost and complexity, evolving regulations, and the need for operational efficiency.
Developing a new drug can cost approximately $2.6 billion and take up to 15 years. Partnering with CDMOs can expedite production timelines, optimize manufacturing, and manage formulation challenges and regulatory hurdles. CDMOs’ quality control reduces errors, supply disruptions, wasted materials, and costly recalls.
CDMOs were crucial during the COVID-19 pandemic. For instance, Moderna worked with ThermoFisher and Rovi in Spain to increase vaccine manufacturing capacity and meet worldwide demand.
With the pharmaceutical industry increasingly turning to outsourcing, CDMOs shape the future of drug development. Their cost-effective, efficient, and scalable solutions ensure life-saving medications reach patients faster, reinforcing their importance in modern healthcare.
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Adragos Pharma. (2024, July 2). CDMO: What Is It and How It Benefits Your Business. Adragos Pharma. Retrieved from https://adragos-pharma.com/cdmo-what-is-it-and-how-it-benefits-your-business/
Briones, J. A. (2025, March 23). Pharma giants move to outsourcing as CDMO industry grows. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/pharma-giants-move-to-outsourcing/
