10 contract services trends for 2021 - Molecule to Market
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services trends
10 contract
for 202110 contract services trends for 2021 02
10 contract services
trends for 2021
Over the past six months, our Founder and Global President
Raman Sehgal has conducted over 50 interviews with
some of the most senior (and well-respected) leaders in the
pharmaceutical and biotech industry’s outsourcing segment.
In the latest episode of molecule to market, host Raman
shares the top ten trends he expects to see in the industry,
based on insights collated from the industry experts he’s
had the pleasure of speaking with during 2020.
In this guide, we explore these trends.
What lies ahead for the global pharma and biotech
industry’s contract services industry in 2021 and beyond?10 contract services trends for 2021 03
01. The outsourcing
market will continue
to grow
Quite simply, the demand for outsourcing is predicted
to grow aggressively in 2021.
Raman predicted there will be higher demand, greater
funding, more facility purchases as well as higher capital
expenditure rates in 2021. Overall M&A activity will increase
and there will be greater consolidation within the sector
although the industry will remain fragmented. We can
also expect to see demand outstripping supply in the
sterile drug product space due to the supply constraints
the COVID-19 vaccine requirements have placed upon
available capacity, globally.10 contract services trends for 2021 04
02. Higher expectations
for drug development
efficiency
COVID-19 has pushed a typically slow to change industry
to break down barriers and pivot in a way we wouldn’t
have been able to to predict before.
Raman discusses the new paradigm in drug development
and manufacturing following the unprecedented speed
in which the vaccines were brought to market. Industry
professionals who have spent their entire careers in this
sector have been astounded by the ability of the entire
supply chain to work together and make things happen
for the greater good of the global population. The talk
of collaboration finally became a reality.
The impact? Funders will expect more rapid development
and quicker timelines to market. They’ll potentially use
these high profile examples as benchmarks for future drug
development projects. Contract manufacturers, researchers,
packaging companies and CROs are likely to see greater
expectations from sponsors.
What will be the biggest challenge? Not the sector’s ability
to respond but the regulatory challenges this will bring.
When the shackles were off, obstacles reduced and a clear
purpose was in sight, the regulators moved quicker than ever.
So how quickly can the regulators deal with this pace of
change in the new, post-covid world?10 contract services trends for 2021 05
03. Increased
competition
in the sector
Raman points to the huge developments that were
recognised in 2020. We have seen relatively unknown
companies secure huge US government contracts
(Kodak and Phlow) and we’ll continue to see previously
unknown entities successfully break into our sector.
He points to a roundtable discussion he attended last year
that referred to the life sciences space as the most investable
sector right now. The positives? It will mean more funding
and interest in the sector. Challenges? More competition.
He said there was a strong need for vendors to think about
the value their business adds in terms of building a real
specialism around capabilities and a loyal customer base
to combat this in 2021.10 contract services trends for 2021 06
04. Greater
adoption of new
technologies
Raman pointed to this trend in Madrid 18 months ago
in reference to a greater shift towards digitalization.
As the past year has progressed, this has moved faster than
the previous ive years due to the challenges brought about
by the global pandemic.
COVID-19 has accelerated the need for us to adopt
technology across the supply chain. For example, CROs
have had to ind technology solutions to keep clinical trials
running (devices, wearables and virtual monitoring). We’ve
also had to embrace more practical applications such as
secure document sharing. The market needs to consider
how we can cut down lead times, get products to market
faster and focus on digital platforms that could help us
along the way.10 contract services trends for 2021 07
05. A new found
positive reputation
for pharma and
biotech
Having worked with the media since 2004, Raman points to
the difficulty in historically securing coverage for clients in
mainstream media titles pre COVID-19.
Right now, we find ourselves in the global spotlight (not only
pharma and biotech but the entire supply chain). He nods
to taking advantage of the work and value companies that
operate in this sector can add when it comes to getting life
saving drugs and treatments to market.
Contract service companies have an opportunity to leverage
these new eyeballs on the sector to make science cool again
and attract new talent (something that has always been a
challenge) for those leading in the sector.10 contract services trends for 2021 08
06. From bench
to boardroom -
diversity has to
be on the agenda
Host Raman referenced how diversity has been highlighted
on a macro level over the past twelve months and how often
this topic has come up in conversations during molecule to
market podcast episodes. In particular, that diverse teams
lead to better ideas and outcomes.
As well as diversity across industry specific topics, such as
the need for greater representation of ethnic minority
groups in patient recruitment to generally considering how
diverse your business is. Raman encourages senior leaders in
the sector to set the right example and encourage a more
diverse approach, from bench to boardroom.10 contract services trends for 2021 09
07. The impacts
of COVID-19 on
contract services
From shorter term impacts like delays in clinical trials due
to COVID therapeutics taking up space and delays getting
patients into trials, vendors will need to start thinking about
how the sector will be better prepared for future pandemics.
Challenges lie ahead for vendors thinking about future
logistics, storage and capital expenditure in preparation
of the future unknown. There’s a real opportunity for
suppliers to be flexible and supportive by becoming less
transactional. For the contract services space, aiming to
become more of a foundational bedrock of the wider
pharma and biotech sector moving forward.10 contract services trends for 2021 10
08. More considered
supply chains
COVID-19 shook the supply chain to its core. A common
theme amongst podcast guests over the past few months.
The publicity the industry has received on a global scale
could lead to an acute examination of its integrity and
resilience to get drugs to market safely.
Raman points to greater scrutiny that’s been seen over drug
supply locations with patients and stakeholders asking
where their drug is being manufactured. He predicts that
we’ll see more secondary and contingency suppliers, more
parallel and local manufacturing and more conscious
decision making from buyers.10 contract services trends for 2021 11
09. Growth
in Asia
Host Raman recognises the growth of Asia over the past
few years to become a major player amongst the pharma
and biotech market, as a value-add and not just commodity
source. From western companies cloning facilities and
placing them into Asia, to existing facilities in China being
transformed into CDMO facilities, the market is gearing up
to accommodate increased global and domestic demand.
He nods to the need for China to work on its reputation as a
trusted supplier of affordable, secure and safe drug products.
Huge domestic demand from China will provide great
opportunities for contract services around the world.10 contract services trends for 2021 12
10. Newer drug
delivery platforms
Raman expects to see newer types of drugs within product
pipelines in the future, along with more patient friendly
drug and product dosage forms.
In addition to the mRNA and cell and gene therapy
innovators, he expects to see more drug repurposing
(under 505(b)(2)) to create newer drug delivery platforms
that will offer faster and more effective routes to market
for many new therapies, with less investment required.
This is an exciting time when it comes to seeing what’s
possible for the types of products and dosage forms the
sector is able to develop, so having specialism to deal with
those products in the future could be beneficial for vendors.ramarketingpr.com | hello@ramarketingpr.com So there you have it, the top ten trends for the pharma and biotech’s contract services space in 2021 and beyond based on curated guest opinion. We’ll connect with host and Global President Raman Sehgal later on in the year to see how these predictions have played out. In the meantime, you can listen to the podcast via the links on the website or get in touch to nominate a guest speaker you’d like to see featured during 2021.
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