Is It Better To Develop And Manufacture A Drug In-House Or To Outsource?

Even the largest developers may lack the internal resources necessary to bring a product to market in a timely manner. In these instances, companies have two key options: acquire and/or build resources in-house or outsource to a CDMO with expertise in process development and manufacturing.

While this critical decision is not novel for the life sciences, the factors impacting it change year to year and have become increasingly complex (e.g., considerations around global supply chain are more impactful, require more resources and information, and can shift erratically based on global events).  Accordingly, it is vital to regularly examine and understand elements impacting the build-versus-buy decision. (Bio)pharma organizations then must determine which elements to prioritize (and why).

In attempting to build versus outsource, innovative companies may be inadvertently distracted and siphon resources from their core competencies, costing time on the current project and promising portfolio products less advanced in the pipeline. In short, building may not be the most cost-effective or the fastest development and manufacturing solution. Partnering with a CDMO grants instant access to its supplier network, capacity, and expertise — even more beneficial if the CDMO specialized in large molecules, gene therapies, or whatever other product the client may be developing — while freeing up the pharmaceutical company or biopharma to do what it does best.