How Does Cost Factor into CDMO Selection and Outsourcing Approach?

INTRODUCTION
A recent analysis of ISR data on factors driving CDMO selection for small molecule drug substance over the prior five years showed that the importance of Low cost varied from year to year (1). The attribute earned an average five-year ranking of 5.2 out of the 28 different CDMO characteristics presented to survey participants, making it the sixth highest ranking selection metric. Contract manufacturer attributes such as Proven ability to manufacture small molecule API, Reliable, on-time delivery, Strong regulatory track record, Has capacity to meet our demands and Prior positive experience with the service provider all averaged a higher combined ranking when aggregating ISR’s CDMO Benchmarking data from 2018 to 2022. While attributes like Track record for meeting quality performance metrics and Scientific knowledge also made appearances in the top-five selection metrics during the timeframe. This article will further explore how cost influences CDMO selection and what other factors are at play.

DISCUSSION
Previously, ISR shared details on how the most popular selection metrics for small molecule CDMOs have changed over the past five years. Notably, Low cost fell outside the top 5 metrics when taking an aggregate view of the attribute’s ranking, in large part due to the characteristic landing in ninth position in both 2018 and 2019. However, the importance of finding a Low cost service provider shifted during the economic downturn that coincided with the onset of the COVID-19 pandemic. Low cost’s ranked position surged from ninth to second in 2020 and up to first in 2021. When the economic concerns early in the pandemic subsided, and the challenges with supply chain and logistics moved front and center, the data show outsourcers priorities quickly shifted to Reliable, on-time delivery as their top priority.