eHandbook: Contract Manufacturing

Contract development and manufacturing organizations (CDMOs) are more critical than ever to the biopharmaceutical industry, providing essential outsourcing services to customers and helping them to focus on their core strengths. CDMOs provide much-needed, at-scale production capacity and outsourced services such as drug development and testing to reduce costs and tap outside expertise.

While CDMOs faced headwinds in 2025, the outlook this year for the outsourcing space is cautiously optimistic based on the biopharma industry’s funding levels, product pipelines, and R&D spending. Among the factors contributing to the growth of the CDMO market are increasing demand for advanced therapeutics such as biologics to treat complex diseases, as well as services like active pharmaceutical ingredient (API) manufacturing, drug production, and regulatory support.

Given the world’s current geopolitical and trade tensions, CDMOs with global footprints are positioned for growth in their respective markets as they navigate a rapidly evolving landscape including tariffs. The good news is there are meaningful signs of recovery in the sector and the long-term growth drivers for the industry remain strong.

Sponsored by AbbVie, Bend Bioscience and Bora Pharmaceuticals