Description

The overall objective of this study was to provide contract manufacturing organizations (CMOs) a sound basis for formulating an effective strategy to compete in the market, including areas of opportunities and threats. As far as the market dynamics and CMO selection are concerned, overall satisfaction and likelihood of contract renewal are in the 40–50% range across all product types, indicating opportunity for CMO vendor switching in the future. Of all parameters used in CMO agreements and selection, “volume commitments” ranks as the most important while “capacity and site transfer” ranks second. Overall, pharmaceutical and biotechnology companies prefer to outsource to CMO companies which possess operations in the same region.