Finding Compatibility In Love And CDMO Partnerships
By Tyler Menichiello, Chief Editor, Bioprocess Online
In CDMO partnerships, as in dating, there are couples that simply should not be together. Whether it’s poor communication, financial troubles, mismatched priorities, or simply being at different stages in life — it’s just not the right fit. And that’s ok! But it’s a decision to stay in an unhealthy relationship versus going out and finding what you deserve. (Are we still talking about CDMO partners?)
Of course, that’s easier said than done — especially if you have no healthy examples at home to look up to. Regardless, it all starts with knowing what to look for in a (CDMO) partner. Luckily, this was the theme of a panel I moderated at this year’s BIO International Convention in Boston.
The panel was titled “Beyond The Contract: Building Successful Biotech Partnerships,” and it featured a collection of panelists from sponsors and CDMO companies alike (plus one consultant). Joining me on stage was Jim Beach, CEO at Bexion Pharmaceuticals; Jessica Blomberg, Ph.D., founder and CEO at Quality CMC Consulting; Eric Cunningham, VP of CMC and process development at Sequoia Vaccines; Rose Rhomberg, senior director of sales and business development at Cytovance Biologics; and Robert Tragas, executive director of lab operations at Alcami.
Over the course of an hour, we talked about what defines a good sponsor-CDMO partnership, as well as what red flags to look out for when you’re vetting partners. The inspiration for this panel came from an editorial by my colleague and chief editor over at Outsourced Pharma, Louis Garguilo, which reported survey results indicating lower CDMO customer satisfaction ratings among small and emerging biotechs compared to their large pharma counterparts.
As such, the first part of the session focused on unpacking this sentiment and assessing its validity. The panelists discussed what factors may be responsible, and ultimately, what small and large biopharma companies can both do to cultivate happy, successful relationships with their CDMOs.
From left to right: Cunningham, Tragas, Blomberg, Rhomberg, Beach, and Menichiello on stage at BIO
Know Your Worth, But Don’t Reach Out Of Your League
It’s no secret that large pharma companies have deeper pockets and more spending power, but does that really equate to better treatment by CDMOs? The short answer is no. Or at least it shouldn’t — not with the right partner.
It boils down to being realistic and knowing who is and who is not a good fit, or who is “out of your league,” (to keep with the dating analogy). A 20-year-old wouldn’t be looking for love at a nursing home’s bingo night, the same way an affluent socialite probably wouldn’t be looking for love in skid row (though we don’t judge). The same way there are appropriate dating pools, there are appropriate biotech and CDMO partnerships.
“If 95% of [a CDMO’s] business is with big pharma, and they’re trying to fill out a little bit of capacity, run away,” Beach told the audience, because “that’s not right for you as a small biotech.” The moment they get to a 100% capacity, he said, “you’re the one that’s going to be kicked to the curb.”
That’s not to say there aren’t great CDMOs out there who will work with smaller biotechs — there are, and they can be terrific partners, but not every CDMO is well-suited to support smaller companies.
“You need to have someone that kind of understands where you’re at,” said Blomberg. Find a CDMO that understands your different milestones and is willing to partner with you early on with the intent of growing together, she said. “Some of the bigger companies, they don’t really value that as much.”
At the same time, smaller biotech companies — with substantially shallower pockets than Big Pharma —need to work harder to sell their product and vision to a CDMO. In lieu of abundant finances, early companies need to articulate their value proposition very early on, Rhomberg said.
One way to do this is by writing down everything they can about the protein, including its size and indication. “They may not have the other information yet as far as the process development, but they can still paint a picture of where they’re headed,” said Rhomberg. If done well, sponsors can get the buy-in from the technical team and even get them excited to be a part of the project.
“A lot of these indications can be lifesaving, perhaps for a small child, and they become emotionally invested,” Rhomberg explained. “So, then the CDMO is not just looking at it in terms of dollars and cents, but they’re looking at it in terms of, ‘I can make an impact.’”
Anticipate Risks And Set Expectations
Drug development is a risky business, and it’s even more-so for emerging biotech companies who may be trying to bring a brand-new technology to the clinic. The right CDMO partners understand the risks and want to work with these companies to bring new therapies to patients. A successful partnership takes equal effort from both sides in assessing and mitigating these risks — BEFORE a project begins.
It all starts with the right request for proposal, said Tragas, “and working very closely with the CDMO to help you define the scope.” Especially in small- to mid-size biotech companies, experienced CDMOs are invaluable.
Setting expectations is also an important step in forging new relationships — professionally and personally. For a new romantic couple, this might mean discussing preferences, outlining boundaries, agreeing on whose family to visit for the holidays. In a CDMO partnership, this means outlining accurate project timelines — emphasis on accurate — and talking about contingencies.
Accurate timelines consider how many things can and almost certainly will go wrong, the panel agreed. Good CDMOs understand this and provide timelines based on facts, said Tragas. Otherwise, they risk over-promising and under-delivering.
This can be a double-edged sword though, Cunningham pointed out, since timelines can be a major selling point. Accurate timelines may drive a sponsor straight into the arms of another CDMO making false promises to get them through the door.
Prioritize Real Communication
The panelists agreed that good communication is critical in any relationship, but what does that look like in practice? For one, it starts with having actual conversations, Beach told the audience. “If people attempt to do everything by email, I would run away.” (After all, if reality TV has taught us anything, it’s that it’s too easy to fake a “good” relationship through emails and text messages.)
Cunningham echoed this point and stressed the importance of regularly meeting with your CDMO. “If you’ve got nothing to talk about, cancel the meeting,” he said, but it’s important to have these regular meetings on the calendar to at least set a precedent.
It should go without saying, but if there’s something important going on in the process that needs to be talked about, then the person in charge of it has to make it to the meeting. “Don’t have the PM tell you what the SME told them,” Cunningham said with exasperation. That’s like a game of telephone, he said, “and you never get the specifics.”
Good communication also means being reachable, even when you’re collecting data, Rhomberg said. Even if it’s a simple message saying, “Hey, I’ve been working on this; I’ll get back to you.” This kind of transparent communication demonstrates dependability, which can ease anxiety all the way up the leadership ladder (on both sides).
Love At First Site
In addition to frequent meetings, site visits are absolutely critical, the panel told the audience. “Visit the laboratories, talk to the SMEs, understand the equipment that they have in place,” said Tragas. While initial talking-stage conversations can be exciting, there’s no better tell of your compatibility and chemistry than meeting in-person.
Not only will the right CDMO allow for a site visit, but they’ll actively encourage it. “The best CDMOs that I’ve worked with want me involved,” Cunningham said. “They want me involved in the process. They want me to come into their labs.”
“It reduces their liability,” Blomberg added. “If you have a CDMO that does want you to be hands-off, that actually scares me a little bit. I think there would be a lot of findings on that audit.”
It helps going into a visit with an agenda in place, said Rhomberg, as this can make visits more productive. “Typically, what I do is ask the sponsor, what do you want to see? What questions do you have?” This way, both teams can optimize their time together on site.
Whether in a romantic pursuit or in a CDMO partnership, you shouldn’t settle for less than you deserve. Yes, some CDMOs prefer to work with Big Pharma over smaller biotechs, just like some folks prefer to date people with money and status over someone struggling to make ends meet. It’s all about knowing your worth and what you need in a partner.
I’ll wrap this up with a (slightly modified) quote from the late and great Robin Williams in one of my all-time favorite movies, “Good Will Hunting”:
“You’re not perfect, [sponsor company], and let me save you the suspense: this [CDMO] you’ve met, [it’s] not perfect either. But the question is whether or not you’re perfect for each other.”