Challenge
Growing tensions between the U. S. and China could affect the competitive landscape for CDMOs (Contract Development and Manufacturing Organizations) and CROs (Contact Research Organizations) for Chinese companies facing competition from Asian and Western contracting platforms. A hedge fund client wanted to gain insight into the thinking of its large pharmaceutical and biotech clients and explore how they select a CRO or CDMO partner in the current political environment.
The GLG Approach
The GLG project team identified 100 C-suite professionals within research and development and manufacturing functions at pharmaceutical and biotech companies in the U. S. and Europe, and conducted a research survey to uncover their decision-making criteria and ideas around outsourcing resources.
Outcome
Using the survey data, GLG evaluated the major CDMO/CRO suppliers against key parameters, focusing on the sourcing criteria of pharmaceutical and biotech companies, the likelihood of changing suppliers, the challenges, the reasons for the selection, and the potential costs and barriers. The research also revealed how geopolitical issues influence CDMO/CRO selection.
