As the needs of Life Sciences companies have evolved, so have the requirements for their partners in contract manufacturing.  This reality, coupled with the increase in the number of both domestic and offshore contract manufacturing alternatives, has left these companies struggling to maintain profit margins and differentiate themselves in an already under-performing and competitive marketplace.

In looking to the future, as products become more complex, as the biosomilar market expands, and as global competition continues to put pressure on margins, traditional contract manufacturers will have to evolve as well, or find themselves struggling to stay relevant in a market driven more and more by price rather than value. The CMOs that thrive into the future will not look at all like today’s traditional CMOs.  Rather they will offer a variety of scientific, manufacturing, supply chain, regulatory, and commercial services to drug companies designed to go well beyond today’s offerings.

Capability Maturity Model

To help companies facilitate the transformation from traditional CMO to full service Life Sciences Contract Services Partner, Clarkston has developed a Capability Maturity Model.  This maturity model is used to evaluate current state and help companies to strategize on the types of changes and investments they want to make to meet their future business objectives.  The Capability Maturity Model covers the following categories:

• Overall Value Proposition
• Revenue Engine
• Scientific Expertise
• Manufacturing / Packaging Capabilities
• Commercial Services Capabilities
• Market / Regulatory / Compliance Expertise
• Quality Assurance / Quality Control
• Other Value Added Services

Over the next several weeks I will highlight the various stages of evolution based on the categories above.  If you would like more information on the Capability Maturity Model or would like to discuss how to apply it to one or more areas within your CMO please do not hesitate to contact me at JoeD@clarkstonconsulting.com.