24/7 BIOPHARMA - issue 1 / October 2024

FLAMMA USA

do you consider other choices after speaking with friends and colleagues? It can be a difficult decision to process. The same can be said about CDMOs. When you first learned to drive, the choice was likely made for you by your parents. When you are developing a drug and your job involves the sourcing of the molecule, you may have to work with a CDMO that was put into place by your current boss or management. While that CDMO may be sufficient, just like your first car, you will likely have your own ideas. You may have noticed that the CDMO you must use is more ‘product centric’ yet you would prefer a more ‘service oriented’ CDMO. Your experiences with your current CDMO may be underwhelming. That is to say, the legacy CDMO is acceptable, but it is not exactly what you desire – similar to that car you first drove thanks to your parents. After attending several conferences, you begin to get a feel for an organisation after speaking to them. You can begin to assess what other CDMOs have to offer and perhaps realise that your current CDMO, albeit doing the job, is not a great fit for your ultimate needs. After meeting with yet another new business development (BD) representative from your current CDMO, you have heard or met with several CDMOs that have excellent reputations. Some even have experience along with a long time, stable management team that could possibly make your life easier. The decision to push your management to consider bringing on a new CDMO can be a challenge. You can see the potential benefit of a fresh take on your programs yet your boss may feel somewhat obligated to stick with your current CDMO. Who knows, the stories of kickbacks, underhanded dealings, commissions being exchanged for priority status and other nefarious deeds are out there. You are told things like “we have always used them” or “it is too difficult to bring on a new CDMO with all that paperwork and site visits”. Nonetheless, you see that having more options could potentially bring great value to your company. My father asked me, “Why do you want to look at another auto maker?” My response was a simple one, “I have spoken to friends and done my homework. I know that I can get more bang for my buck with another car maker”. The same can be said for looking at bringing on a new CDMO. Some (large?) companies have a list of preferred vendors and they will never consider a new addition no matter the circumstances. Time to shop?

There are many biotech and pharma companies that continue to grow their stable of CDMOs to provide not only value, but the necessary options to speed their drug through the clinic. What do you want to be – a leader or a follower?

Be aware of unnecessary contractual agreements

There is no need for signing that extended warranty agreement when you know the car is built well. Yet the salesman will try to convince you that it is worth it. Many buyers make this mistake. Too often, small and virtual pharma companies make the same mistake by signing agreements with companies or agents that often have questionable intentions. Why? Typically, a very small company that just doesn’t have the bandwidth feels that it is better for them to ‘outsource’ their outsourcing. What they fail to realise is that they often handcuff themselves to the third party, who will now either control the sourcing for the life of their molecule moving forward and/or will take a percentage of the spend in perpetuity (see Mr Wonderful on Shark Tank). Having choices greatly enhances your success. Also, dealing directly with a CDMO not only saves you money, but cuts out the middle man. Buying a car from the dealer direct is much better than using an agency that guarantees a low price. Only the dealer can get you that low price because no agency works for free. Repeatedly, these contracts hamstring a company. With today’s marketplace, there is little value in paying for a service that only complicates

91

TWENTYFOURSEVENBIOPHARMA Issue 1 / October 2024