CPHI Milan, the world’s largest pharmaceutical event, taking place at Fiera Milano [8-10 October], returns next month at a crucial time. Beyond the showground, the event will host 150 speakers covering more than 100 sessions on all facets of pharmaceutical discovery, development, manufacturing and production, with a record 62.000 pharmaceutical professionals expected to attend.
Growth in contract services is projected to accelerate in 2025, as shown by new research findings from 280 pharmaceutical companies (CPHI Annual Report and Survey). In addition to indicating further growth in 2025, the results also suggest that the industry is not in favor of the recently passed BIOSECURE Act (the US House of Representatives passed the BIOSECURE Act on September 9; the bill will now move to the Senate).
According to most analysts, the first half of 2024 has seen a slower recovery than expected. Gil Roth, PBOA president, reflects in CPHI’s upcoming 2024 Annual Report on the past year: “While reports indicate that dollars are once again flowing into late-stage assets [at CDMOs, companies that help other companies in the pharmaceutical or healthcare industry on a contract basis], there is little evidence that early-stage products are receiving funding [yet]. This means that the lifeblood of CDMOs — projects moving up the development pipeline and smaller customers staying with key service providers — remains hampered.”
However, the industry as a whole is now taking a more optimistic view on the growth of contract services firms over the next 18 months, with 49% “very positive,” 44% “neutral,” and just 7% predicting a “negative” outlook.
The other big topic of discussion for contract services in 2024 has been the shortage of available contract capacity for excess GLP-1 drugs, but also how the ongoing BIOSECURE Act may impact the outlook for the contract services industry. The consensus is that the Act has further accelerated the post-COVID-19 trend towards greater supply chain diversity, with both US and, in particular, Indian CDMOs expressing increased interest in strategic partnerships.
A significant finding was that the majority of the industry does not support BIOSECURE’s stated goals, with only 19% believing that China-based CDMOs “are a threat and should be removed from Western supply chains.” 38% of respondents oppose this position, arguing that BIOSECURE is a “politically motivated issue that sets a worrying precedent for the industry.” The remaining 43% of the industry (and thus the largest group) has a balanced view, supporting WuXi’s “tremendous contribution to the industry” but also suggesting that it makes sense for the industry to “diversify supply partners.”
These findings show that global pharmaceutical companies (both innovators and generics) are now actively seeking wider supply chain clients and key development partners. More than 600 contract service providers will attend CPHI Milan next month, with partnership discussions expected to accelerate as biotech funding begins to translate into higher deal volumes for 2025 onwards.
Tara Dougal, Brand and Content Director at CPHI Milan, added: “The contractual services area at CPHI continues to grow year on year, largely driven by the industry’s need for trusted partners who can provide capacity, help navigate the nuances of complex therapies and support the path to commercialisation. CPHI Milan serves as a vital platform to connect existing and potential partners, and we look forward to continuing to serve this growing segment of the industry in 2025 and beyond. We also see a desire among our attendees – i.e. the people who award contracts – to meet current partners and progress projects, but also to significantly expand their networks looking ahead to 2025.”
