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Adapting to Change in Contract Pharma

A contract development and manufacturing organization (CDMO) found itself wondering how it could continue to be competitive in a rapidly evolving industry. Traditionally, contract pharmaceutical manufacturing had focused on the large-scale manufacturing of drugs for commercialization. Over time, these organizations began to capture value further upstream in the drug development lifecycle, pushing into pre-formulation and clinical supply. As the contract pharma model advanced into the late 2000’s, customers were increasingly interested in a strategic outsourcing partner – one company that could offer any number of services from candidate selection to commercialization.

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At the same time, the pharmaceutical outsourcing market was experiencing a tremendous amount of change. Cornerstone services were maturing, driving profit centers towards commoditization. Consolidation of outsourcing players was impacting the way that CDMOs went to market. The industry also had to prepare for growth, as the emergence of biologics and biosimilars had begun to take pharma by storm, each requiring their own set of capabilities to capture the opportunity.

As a result, these intermediaries faced an unprecedented number of challenges. In this case study, the CDMO management team knew overcoming these industry challenges was critical to maintain competitive advantage in a new business reality. They chose to partner with Clarkston Consulting, a leading strategy, operations, and implementation consulting firm, to help them transform their business to succeed in a dynamic market.

Clarkston worked closely with the client to develop an actionable market strategy and a prioritized series of critical operational initiatives to transform the business and prepare for the future. These initiatives were projected to unlock significant financial improvements, including the capacity for a 20% increase in revenue, a 45% rise in EBITDA, and a CAGR adjustment from 5% to 13% in year one, compared to the previous year.

To learn more about how Clarkston Consulting can help your business unlock value and prepare for the significant challenges facing life sciences companies, from competitive differentiation and execution to data integrity, contact Michelle Tartalio.

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Tags: Case Study, Competitive Differentiation & Execution