CDMOs: Long on Tactical Supply Risk, Short on Strategic Planning for a Multipolar World Order – Pharma Outsourcing Best Practices Panel at CHEMSPEC Frankfurt, June 2022

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BODGAN COMANITA
MarketChemica & Associates, Toronto, Canada

INTRODUCTION
Business needs long term stability in the global business environment but the last couple of years offered anything but that to the CDMO industry. Dr. Bob Waltermire (1), the panel moderator, commented on challenges encountered by the industry from the COVID crisis, to supply chain shortages and disruptions to national supply security legislative initiatives (2, 3). The unexpected hot war in Ukraine, sanctions against Russia, and an ominous escalation of tensions of the Sino American relationship added to the complex mix of market conditions. CDMOs executives must deliver decisions on a day-by-day basis in a rapidly transforming world. Dr. Waltermire asked the panel to identify the industry main challenges and comment on their short- and long-term solutions.

 

DISCUSSION
In brief, on-time, on-budget, and continuity of supply remain the main CDMOs challenges. Geopolitical reality drives supply chain risk management away from China and the onshoring trend is increasingly manifest. Nevertheless, complete diversification away from China-rooted supply chains remains difficult if not impossible. Most co ...