Supply Chain Diversity Efforts Find Challenge in CMO Sector

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Most global bio/pharmaceutical companies put a priority on diversity within their supply chains. Websites for many large companies—including Pfizer, Janssen, Bristol Myers Squibb, GlaxoSmithKline, AstraZeneca and Merck, for example—include pages dedicated to their supply diversity programs and emphasize the importance of diversity in their contracting activities.

However, bio/pharma companies find it challenging to find minority- or women-owned contract manufacturing organizations (CMOs) that can provide the full package of technological skills, regulatory savvy and proven reliability that they seek for contract service providers. Bio/pharma companies have not made the same progress in meeting corporate diversity goals for CMOs as they have for many other procurement categories, though there is clear interest in adding minority- or women-owned contract manufacturing services where feasible.

It’s uncertain how many CMOs are minority- or woman-owned, much less whether the percentage of companies in this category is less than for other industries. However, the Small Business Administration (SBA) lists 14 certified MWBEs under its “Pharmaceutical and Medicinal Manufacturing” category. Of that number, PharmSource has identified five that claim on their websites to provide some sort of contract manufacturing or related services.

This article is reprinted from the August issue of Bio/pharmaceutical Outsourcing Report. The full article addresses the barriers to market entry and current and future solutions. To learn more, click here.

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Jim Miller is the founder and president of PharmSource Information Services, Inc. A preeminent expert in bio/pharmaceutical outsourcing, Jim established and presides over the industry’s principal resource for serious consumers of information on contract drug development and manufacturing, PharmSource STRATEGIC ADVANTAGE. He is editor and publisher of Bio/Pharmaceutical Outsourcing Report and Emerging Markets Outsourcing Report.

More posts by Jim Miller