Things You Should Know Before Hiring a CDMO

Things You Should Know Before Hiring a CDMO

Before partnering with a contract development and manufacturing organization (CDMO), companies in the pharmaceutical and biotech sectors must assess several critical factors. Choosing the right CDMO can significantly influence the success of drug development projects, making it crucial to be well-informed before committing. Here’s a comprehensive guide to help you understand key considerations.

Understanding Your Specific Needs

Begin by defining your own product’s development requirements. Are you in the pre-clinical, clinical, or commercial phase? Are you willing to use an inexpensive CDMO for early work and accept the cost/time of tech transfer at a later phase? Does your project need complete end-to-end services or assistance in specific areas, like formulation or scaling up production? 

Many CDMOs specialize in various stages of development. By clearly identifying your project's stage and the specific services needed, you can align your needs with a CDMO that offers matching expertise. A mismatch between your needs and the CDMO’s capabilities can lead to delays, cost overruns, and even regulatory setbacks. Precise alignment saves both time and money in the long run.

Evaluating Experience and Specialization

Not all CDMOs are equally experienced across therapeutic areas, dosage forms, and molecule types. Investigating their portfolio is essential, especially looking for case studies or references related to your type of drug. A CDMO that has successfully navigated projects involving similar drugs is more likely to handle your project’s unique challenges effectively.

Regulatory experience is also crucial. Does the CDMO have a track record of working with the FDA, EMA, or other regulatory bodies in your target markets? Their familiarity with regulatory frameworks will be invaluable in navigating compliance efficiently.

Scalability of Operations

Your drug’s production requirements will likely change as you progress through development stages. Can the CDMO scale from clinical trial production to full commercial manufacturing? Investigating a CDMO’s capacity to handle increased production volumes while maintaining quality standards is crucial.

Inquire about their manufacturing facilities and equipment. Do they have the capacity and flexibility to adjust to potential production increases? Do they use scalable technologies like single-use systems in biologics that can help streamline the process? A CDMO that cannot scale production as your needs grow could delay launches and drive up costs, especially during critical phases like commercial manufacturing.

For those looking for options that incur fewer expenses, it may be wise to begin working with an early-phase CDMO. Early-phase CDMOs concentrate on early-stage drug development, like preclinical and Phase I/II clinical trials. The costs associated with early-phase CDMOs are lower because these CDMOs do not require the pricey infrastructure needed in large-scale commercial production. Moreover, their procedures are simple, as their main concerns lie in testing safety and efficacy. Therefore, they can deliver quicker timelines that lower overhead. Although tech transfer costs do occur when advancements in the drug require the expertise of a late-phase CDMO, these may be worth accepting, as late-phase CDMOs can offer specialist knowledge surrounding topics like mass production and distribution, and the tech transfer can help companies to update their small, experimental batches into a production that delivers higher volume and is consistent.

Regulatory Compliance and Quality Standards

A CDMO must adhere to good manufacturing practices (GMP) and pass regular inspections by regulatory agencies like the FDA and EMA. Quality control is non-negotiable in drug manufacturing. Investigate the CDMO’s compliance history to ensure they meet stringent quality management systems (QMS).

Look for transparency in their quality processes, including how they manage inspections and audits. Does the CDMO have a history of timely regulatory approvals? Any history of warning letters or compliance issues should be taken seriously.

Communication and Project Management

Effective communication is a cornerstone of a successful partnership. Clear, consistent, and transparent communication helps manage expectations, timelines, and potential setbacks. Ensure the CDMO provides a dedicated project manager to your account who serves as a primary contact. The project manager should ensure transparency, keeping you informed of key milestones, challenges, and updates.

If you are a small biotech, is the CDMO prepared to treat your project the same as the projects of big pharma clients in their portfolio? Will they treat your one project the same as they would treat ten from a major client?

Location and Supply Chain Capabilities

Geographical proximity can play a critical role in logistics and project management. Evaluate the CDMO’s location in relation to your own operations, especially if your project involves global markets.

Do they understand the regional regulations where your product will be marketed? Can they manage cross-border supply chains without delays? Issues like shipping times, customs clearance, and regulatory jurisdictional differences can be streamlined with a CDMO that has global capabilities.

Cost Transparency and Flexibility

Understand the pricing model upfront. Some CDMOs have opaque pricing structures, with hidden fees for services like regulatory submissions, material procurement, or quality testing. Request detailed cost breakdowns and ensure that the contract accounts for potential changes in project scope.

Make sure the CDMO offers flexibility in managing unforeseen issues without significantly impacting the budget. Ask if they have provisions for adjusting costs if the project needs to pivot or expand.

Innovation and Technological Capabilities

CDMOs that invest in innovative technologies may be able to improve efficiency and lower costs. Look for organizations that utilize cutting-edge methods and technology. However, also be cautious and consider whether these organizations will cover the costs of implementing these technologies or if you, as the sponsor, will need to pay the expenses.

Check if they leverage automation or data-driven analytics to enhance manufacturing processes. These advancements can significantly streamline operations, reduce human error, and offer faster turnaround times.

Cultural Fit and Partnership Philosophy

Finally, don’t overlook cultural fit. Your partnership with a CDMO is not a short-term engagement but often spans years to decades. Does the CDMO align with your company’s values, goals, and way of working? A strong cultural fit leads to smoother collaboration and fewer conflicts, fostering a more productive, long-term relationship.

Closing Thoughts

Hiring the right CDMO can make or break a drug development project. By considering these critical factors, companies can select a partner that not only meets their technical and regulatory requirements but also aligns with their long-term goals. With DS Inpharmatics’ experience in guiding clients through these complex decisions, we help ensure successful partnerships with CDMOs, streamlining the pathway to regulatory approval and commercial success. Contact us to learn more.

Meranda Parascandola
Meranda Parascandola
Meranda Parascandola is a member of the DSInpharmatics team and has written a variety of blog posts which you can read here.