Finally, drug sponsors should consider location when settling on a CDMO partner, as selecting a partner outside their target market can pose significant logistical issues. According to Chatterjee, because of time, regulatory, and supply chain constraints, it is rarely worth selecting a European CDMO for a US-release drug, unless the vendor provides specific expertise that is difficult to find elsewhere.
‘I think you have to be very cognizant of the complexities around dealing with the logistics of making drugs outside the US or outside the market that you're intending to go into,’ he says.
‘I'm not saying it can't be done. I just think you must make sure that you are in sync with their capabilities in terms of timeline and the processes that they're going to use, their prerequisites. So, take the example of a low volume product, low turnover in the marketplace, high margin perhaps. I can use a manufacturer in Switzerland, or I can use a manufacturer in Germany for the US market if they do great work.
But if I'm making an OTC, maybe I don't want to use them. My concern is: do they have the ability to turn product around and get into the market and handle logistics while navigating the GMP pieces in Europe? That might be more than you want to take on.’