44 CHEMICALS KNOWLEDGE HUB Issue 2 / October 2025 In its 2024 Annual Report, Lonza spoke of the “increasing demand for integrated solutions that decomplexify and de-risk supply through strategic partnership with a single CDMO.” 1 The sentiment was later echoed in comments from Japanese CDMO, AGC and its president, Tadashi Murano, who said that clients “particularly value partners … who can pass regulatory inspections without delays.” 2 The remarks reflect an ongoing shift within the contract services industry that still demands value for money but now prizes assurance, consistency and regulatory confidence as much as capacity. That shift is reshaping what sponsors look for in practice, beginning with a stronger appetite for integrated services. Rising demand for integrated services The old model of outsourcing, parcelling out discovery, formulation, scale-up and commercial manufacture to a patchwork of contractors, is giving way to broader partnerships. Sponsors are consolidating work with fewer providers, preferring those that can carry a molecule from first-in-human studies through to market launch under one quality framework. A Deloitte study on quality-control modernisation noted that “companies are investing in quality control lab modernization, using automation, AI and digital tools, to boost speed, compliance and quality.” 3 The same logic applies to outsourcing, where biologics and advanced therapies are compressing timelines. Sponsors increasingly want partners able to integrate multiple phases of development and manufacturing under one framework. Larger CDMOs have moved aggressively to broaden their capabilities. Thermo Fisher paid $1.7bn (€1.5bn) for Brammer Bio to add viralvector expertise to its network, while Catalent acquired Paragon Bioservices for $1.2bn (€1.1bn) to expand into gene therapy manufacturing. At the other end of the market, Oxford Biomedica has sharpened its focus on viral vectors, agreeing to buy ABL Europe for €15m ($16m) to reinforce its position as a specialist provider. In a sector where time to market and inspection readiness are paramount, the ability to integrate seamlessly, whether through scale or specialist depth, is becoming a decisive advantage. Compliance as currency If breadth is one side of the new partnership, regulatory assurance is the other. CPhI analysts have warned that small and mid-sized CDMOs “must invest now in quality management and CONTRACT SERVICES
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