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The Increasing Demand for Small Molecule CDMO Drugs

Contract manufacturers that focus on the development and production of small-molecule APIs have experienced considerable growth over the last 5 years. I have seen this myself especially in the past 3 years, having worked closely with some of the most exciting Small Molecule CDMO's in the industry.

The revenues of Contract Manufacturing Organisations and CDMOs that are involved only in the development and production of small-molecule drugs has increased significantly. Some companies have been achieving revenue growth of greater than 20% year on year since 2014. Both small molecule and biopharmaceutical approaches have established track records for providing effective curative benefits to patients. Both approaches also have their fundamental pros and cons but will always remain as complementary strategies for drug discovery for the foreseeable future.

The ever-increasing strong demand for HPAPI manufacturing services is having a significant impact on the contract manufacturing market. Companies with existing HPAPI capabilities are constantly expanding their facilities, while many without have acquired existing businesses or added HPAPI capacities to their current capabilities. HPAPI manufacturing demands millions of dollars in investments over and above that of CDMOs/CMOs providing traditional API (non-HPAPI) manufacturing services. CDMOs/ CMOs providing contract HPAPI manufacturing services must be prepared to adapt, improve, and/or implement new protocols, training, equipment, and technologies to meet the requests. 

Both Drug Product and Drug Substances are also a huge part of the Small Molecule CDMO market. In today’s pharmaceutical industry, innovation, technology, and speed-to-market are more critical than ever. Pharmaceutical companies are consolidating their supplier base and prefer working with CDMOs that offer services across drug substance and drug product as well as development and manufacturing. In response to this market demand, CDMOs continue to expand their capabilities across all phases of development and commercialisation to eliminate the need for technology transfer and to serve customers end-to-end. One of the key growth drivers for companies in the CDMO space is their ability to offer reliable integrated services across the drug lifecycle.

Mantell Associates is a specialist Pharmaceutical and Life Sciences Head-Hunting organisation. To find out how we can assist with your business requirements, contact us on +442038547700.