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- 04/15/2019

CDMO Strategy – What do you really know?

Chimica Oggi-Chemistry Today

In our industry, the outsourcing trend for non-core or capital-intensive activities continues. Market studies and industry experts have repeatedly confirmed this during events like DCAT week. Fine Chemicals, Dosage Form and CRO players want to capture opportunities offering more CDMO services. The landscape is changing. New pharmaceutical products require lower volumes, be more expensive and use new, different technologies.

Moving into CDMO Business or reinforcing your CDMO Business requires changes in your organization, trigger investments, and changes the way how your company works are inevitable. Change Management is key. CDMO is a sophisticated service, not just another sales activity. Classical consulting companies help customers for strategy development, usually, they are not involved in operational activities. They do not help to generate business and should not.

LaForce Business Solutions (LBS) has set up the different business service. LBS stroke agreements with carefully selected principals. Together, we develop the market or the enterprise strategy, followed by a joint BD  in CDMO capitalizing on LBS’  worldwide network.

Pharma CDMO Business is not taught in training courses. As B2B, CDMO has particularities which require longstanding experience in the field. Here some important topics you may have to consider:

  • You need people with the right skills in sales & marketing/BD. A salesperson for CDMO has a different profile; you do not sell products, you offer industrial services, tangible results are not generated in brief time but need a long breath and perseverance. Calculate that to acquire a decent number of projects, 2 – 3 years are necessary.
  • Customer Orientation, this could mean that your organization has to change from inside-out to outside-in.
  • Project management, collaborating with CDMO-customers, handling critical situations need a transversal approach (“Silo behaviour” is toxic!) covering Supply Chain Management, Regulatory, Process Development, Manufacturing and Capacity Planning, Financial Management – at least 30 – 40 % of product cost will be for raw/starting materials;
  • Soft skills: open communication, open books, risk taking, strategic thinking, forward looking, language skills;
  • Hard skills: financial breath, technical toolbox, available capacity, sound regulatory and compliance track record, efficient project management;

LaForce Business Solutions is one of few strategic partners for success in the CDMO Business. No “overnight” results occur, the way is long, bumps will be in the road. The founder, Roger Laforce, went through this in many roles and companies of different sizes. Let’s meet at CPhI North America!

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