The Changing Contract Services Landscape
The contract services industry finds itself in a different place than it did one year ago. The favorable financial environment is creating opportunities for CMOs and CDMOs to raise capital to fund investments and acquisitions, and in some cases launch themselves as public companies. At the same time, a growing number of CMOs and CDMOs are diversifying their business models by venturing into proprietary products. The robust financial markets have also been good news for the demand side of the contract services equation. The in-flow of capital has meant that bio/pharma companies have substantial resources for R&D spending, and there are strong signs that companies are refilling the pipeline with more early development candidates.
For more information on the outlook for the CMO industry, download my slides here.