Podcast with board member Ted Fjällman
On a recent episode of Värdeskaparna, NorthX Biologics very own board member Ted Fjällman made a quest appearance. During the podcast, Ted delves into the biotech industry’s current trends and ...
The pharmaceutical and biotech industries are experiencing a paradigm shift that is redefining the roles and responsibilities of Contract Development and Manufacturing Organizations (CDMOs). Over the past few decades, these organizations have transitioned from being mere service providers to becoming essential partners in the drug development and manufacturing process. We at NorthX Biologics, a company that has been engaged in pharmaceutical manufacturing since 1963, have witnessed firsthand how the landscape has transformed—particularly in the realm of advanced biologics. This transformation is not just about scaling up operations; it’s about redefining relationships, expectations, and outcomes.
The shift from transactional to partnership-based models
Historically, CDMOs were seen primarily as external contractors—a means to an end for pharmaceutical companies that required additional capacity or specialized expertise. These relationships were often transactional, with clear boundaries between the client and the service provider. The CDMO was expected to deliver a specific product or service, with little room for collaboration beyond the agreed-upon terms.
However, as the industry has matured, it has become increasingly clear that this transactional model is insufficient to meet the demands of modern drug development, particularly in the context of advanced biologics. Today, there is a clear shift towards partnership-based models, where CDMOs and their clients work hand-in-hand throughout the entire drug development lifecycle—from early-stage development through to commercialization and beyond.
At NorthX Biologics, we have evolved from our roots in traditional medicine production to become a leader in advanced biological manufacturing. This evolution has been driven by several factors:
As a result of these factors, CDMOs like NorthX Biologics are no longer just service providers—we have become integral partners in the drug development process. This shift towards partnership-based models has profound implications for both CDMOs and their clients.
Advanced biologics: More than just a product
The production of advanced biologics is fundamentally different from the manufacturing of small molecules, and this difference has significant implications for the relationship between biotech companies and CDMOs.
Small molecule drugs are often straightforward chemical compounds that can be mass-produced using well-established processes. In contrast, biologics are complex drugs made from living cells. These drugs are not just products—they are processes. The manufacturing of biologics involves numerous steps, each of which must be carefully controlled to ensure the final product meets the necessary quality standards.
Moreover, biologics are highly sensitive to changes in their manufacturing environment. Even minor variations in the production process can lead to significant differences in the final product, which can affect its safety and efficacy. This complexity means that biologics manufacturing is not a one-size-fits-all service. Each biologic is unique, requiring a tailored approach to development and production.
This is where the traditional fee-for-service model, commonly used in small molecule production, falls short. In the world of biologics, you’re not just purchasing a product; you’re engaging in a collaborative process that involves ongoing dialogue, adaptation, and problem-solving between the biotech company and the CDMO. At NorthX Biologics, we have embraced this collaborative approach, recognizing that the successful development of advanced biologics requires a partnership mindset.
The importance of integrated services
In the rapidly evolving biotech industry, the ability to offer integrated services has become a key differentiator for CDMOs. As highlighted in the recent WittKieffer report (1), CDMOs that can provide end-to-end services—from process development to commercial-scale manufacturing—are increasingly in demand.
However, it’s not just about the breadth of services offered; it’s about how well these services are integrated and executed. A CDMO that can seamlessly coordinate activities across different departments and sites can significantly reduce the time and cost associated with drug development. This is particularly important in the early stages of development when processes and methods are still being refined.
For example, knowledge transfer is a critical component of the drug development process. Ensuring that insights gained during early-stage development are effectively communicated to the teams responsible for later stages can make the difference between hitting a critical milestone or facing costly delays. Similarly, close collaboration between the CDMO’s regulatory and manufacturing teams can help ensure that the final product meets all necessary regulatory requirements, thereby reducing the risk of delays during the approval process.
At NorthX Biologics, we have integrated our services across all stages of drug development and manufacturing, from early-stage process development to full-scale commercial production. This integrated approach has allowed us to provide our clients with the agility and expertise needed to navigate the complexities of biologics manufacturing, ultimately accelerating time-to-market for their products.
The leadership imperative
The shift from transactional relationships to partnership-based models also demands a new kind of leadership within CDMOs. As the WittKieffer report (1) points out, the traditional business-focused leadership model may no longer be sufficient to navigate the complexities of today’s market.
In the past, CDMO leadership was often focused on operational efficiency and cost control. However, as the role of CDMOs has evolved, so too have the demands placed on their leaders. Today’s CDMO leaders must be able to drive digital transformation, embrace sustainability, and manage the unique challenges posed by novel modalities like gene and mRNA therapies.
For biotech companies, this means choosing a CDMO partner with the right leadership—one that not only has the technical expertise but also the strategic vision to guide projects to success in a fast-paced, ever-changing environment. The right leadership can make the difference between a successful partnership and one that falls short of expectations.
At NorthX Biologics, our leadership team is committed to driving innovation and excellence in all aspects of our operations. With over six decades of experience, our evolution from traditional medicine manufacturing to advanced biologics production has been guided by a leadership ethos that prioritizes collaboration, agility, and strategic foresight. This leadership approach ensures that we are not only meeting the needs of today’s market but also anticipating the challenges and opportunities of tomorrow.
Conclusion: Choosing the right CDMO partner
As we look to the future, the role of CDMOs will continue to evolve, becoming even more integral to the success of drug development programs. For emerging biotech companies, selecting the right CDMO partner is not just about finding a provider with the right capabilities. It’s about finding a partner with whom you can build a long-term, collaborative relationship—one that is based on trust, shared goals, and a deep understanding of the complexities involved in biologics manufacturing.
In this new era, the choice of a CDMO is more critical than ever. It’s not just about what they can do for you today, but how they can help you navigate the challenges and opportunities that lie ahead. The right partner will not only help bring your product to market but will also play a crucial role in your company’s growth and success.
At NorthX Biologics, our history of innovation and commitment to excellence positions us as the ideal partner for biotech companies navigating the complex landscape of advanced biologics. With a legacy that spans over six decades, we understand that the path to success is paved with collaboration, expertise, and a shared vision for the future. As your CDMO partner, we are dedicated to helping you achieve your goals and drive meaningful impact in the world of healthcare.
(1) the-shifting-cdmo-leadership-landscape-wittkieffer-july-2024-1.pdf
NorthX Biologics is a CDMO and Innovation Hub in Advanced Biologics, with +30 years of GMP production experience. The team provides process development and GMP manufacturing services with expertise in plasmid DNA, mRNA, proteins, cells and other advanced biologics. Headquartered in the heart of Sweden, the team serves customers worldwide and in 2021 was recognized as a national innovation hub for advanced therapeutics and vaccines. NorthX has the ambition to become a leading cell and gene therapy manufacturer and partner of choice for innovative drug development companies.
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