Industry Dynamics

CMO industry drivers

• Cost saving
  • Optimization of plant utilization to improve cost efficiency
  • Benefit from CMO’s operational efficiency: competitive cost and improved margins

Refocusing of resources
  • Concentrate on core competencies such as developing new products, completing clinical trials and marketing
  • Gain access to technical expertise and capabilities

Freeing-up the asset base

  • Achieving more flexible and efficient use of capital by transferring fixed costs to variable costs
  • Increasing the ROI as a result of a reduced operating outlay

• Supply chain flexibility and effectiveness
  • Expanding manufacturing footprint and securing proximity to markets
  • Managed demand volatility for existing products as well as NPIs

• Supply chain and sourcing simplification/streamlining
  • Access to a broad range of technologies and capabilities in one partner
  • CMO consolidation/rationalization

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