Unlocking Success in the Complex World of Contract Manufacturing Organizations (CMOs)

Insights from CPHI North America

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Navigating the complex world of contract manufacturing organizations (CMOs) can be a daunting task. The recent CPHI North America conference in Philadelphia, attended by yet2 Senior Project Leader Hayden Hodges, highlighted important industry themes relevant to our clients and shed light on the importance of thorough research and matchmaking when choosing a CMO partner. Hayden heard from experts like Dave Schoneker of IPEC Americas and BDRC about the ongoing safety evaluation of the critical excipient titanium dioxide, as well as from experts in the digital realm like Alain Bindels of Roche and Michael Frank of Memorial Sloan Kettering on how to prepare for the digital transformation in pharma.

One critical takeaway from CPHI is the necessity to identify specific project needs/constraints before commencing a CMO search. What are your manufacturing requirements (e.g., primary/secondary packaging, capacity), regulatory standards (e.g., GMP), and budget constraints (i.e., high or low COGs required, any CAPEX needed)? Having a clear understanding of these will aid in narrowing down the search resulting in speedier decision-making. yet2‘s expertise, combined with its extensive network and proprietary CMO database, makes us an industry leader in scouting for CMOs.

yet2’s holistic scouting process combines our proprietary database and internal networks alongside a client’s prior knowledge, creating a search that considers geographic areas of interest, end markets/users, and regulatory timelines. Our proprietary database of CMOs (5000+ CMOs across supplements, OTC, medical device, and prescription), contains detailed information on products/capabilities, R&D strengths, and capacity, among others. Our comprehensive approach to scouting, vetting, and negotiating with CMOs aligns perfectly with specific business requirements. We segment the CMO landscape into life cycle players (end-to-end capabilities), pure specialty players, value players, and integrated partners – each of which play a role depending on the project scope and product category.

Finding the right CMO involves careful prioritization, thorough due diligence, and effective negotiation. Our global team of experts lead all these processes, ensuring that the chosen CMO can meet the client’s needs and grow with them. Our approach allows for flexibility and adaptation, such as switching from generic targets to custom development. The goal is to offer CMOs that not only meet the current needs but can also adapt to future changes. In addition to forward thinking partners, yet2 often works to identify agile CMOs capable of supporting low-volume prototyping to drive innovative new product launches. This comprehensive approach ensures companies can expand their external manufacturing network, bolster their supply chains, and tap into new market opportunities while maintaining quality and compliance.

You can find a case study describing our scouting, filtering, and due diligence process on our website. Examples of current CMO scouting projects include: Innovation Partners in Professional Oral Care in North America and Europe and CDMOs to Produce a Generic Version of a Professional Oral Care Product.


Photo by Simon Kadula on Unsplash

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