From CDMOs to artificial intelligence - what's the latest in the world of outsourcing?

We also delve into the latest trends, the rise of AI and the increasing focus on sustainability.

How has the role of contract development and manufacturing organizations (CDMOs) evolved over the last five years?​

The role of CDMOs has shifted significantly since the onset of the COVID-19 pandemic, with the pharma industry now focusing on building long-term partnerships rather than maintaining purely transactional relationships. During the pandemic, the pharma industry was put through a stress test, and it became clear that all players heavily depended on each other. Navigating this challenging period underscored the importance of effective collaboration and strong partnerships.

A significant change we’ve seen in the past five years is the heightened awareness of global supply chain vulnerabilities. During the pandemic, some countries, traditionally key suppliers of raw materials, suddenly imposed export restrictions on critical items, including active pharmaceutical ingredients (APIs) and personal protective equipment. This sent shockwaves through the markets that relied heavily on those supplies.

The result has been a growing focus on ‘onshoring’, ‘near-shoring’, or the latest concept, ‘friend-shoring’, where companies prefer sourcing material from more reliable and geopolitically stable partners. Consequently, the geopolitical dimension of supply chain management has become a central topic of discussion, and companies are increasingly willing to pay a premium for the security of closer, more dependable relationships.

What trends are you seeing in the pharmaceutical industry’s approach to selecting and building partnerships?​

I believe it’s a very human reaction to only truly appreciate something when you’re on the verge of losing it. Before the COVID-19 pandemic, many people took certain aspects of the industry for granted. For a while, complacency served us well. However, when the landscape shifted, these areas became a significant weakness. 

The pandemic exposed critical dependencies within the supply chain, forcing us to reassess who we could really trust and rely on. It became clear who stood by their partners and who took advantage of the situation. Unfortunately, across the entire supply chain, there were instances of profiteering, where companies increased prices under the guise of rising energy costs or threatened to stop deliveries unless their demands were met.

Experiences like these have fundamentally shifted the pharma industry’s focus. No one wants to be in a position where they feel taken advantage of or vulnerable. There is now a greater emphasis on building meaningful relationships based on trust and reliability. The COVID-19 pandemic underscored the importance of fostering closer, more dependable partnerships and I believe this shift is here to stay.

How are artificial intelligence (AI) and machine learning influencing your operations, and what plans do you have to leverage these technologies? ​

Over the past century, science and technology have been pivotal in advancing global health. Now, advances in AI are ushering in a new era by helping to accelerate pharmaceutical development and manufacturing by streamlining drug discovery, optimizing manufacturing processes and personalizing treatments through data analysis and predictive modeling. It’s a very exciting time, and as a scientist at heart, I have a deep appreciation for technology and its potential to drive progress.

We are enthusiastic about exploring the possibilities AI offers, but we also recognize that, historically, the pharma industry has been slow to embrace digital transformation. Resistance to change is present in some corners of the pharmaceutical world, with the perception that AI brings potential risk. This is understandable, as we are in a highly regulated industry, and any risk to patients must be assessed very carefully. However, the potential benefits of AI in enhancing efficiency and precision are too significant to ignore. The industry must adapt and find ways to responsibly integrate these technologies.

Is sustainability a key focus for Adragos Pharma, and do you believe the pharmaceutical industry is on track to meet its sustainability targets?​

Sustainability is a major focus for us at Adragos Pharma. Our commitment is reinforced by our Norwegian investors, which set clear expectations and targets for us. We are aligning our efforts with science-based targets and are actively working towards meeting them.

Our sustainability goals are influenced not only by our investors but also by our clients in the pharma industry who have their own sustainability agendas. To stay competitive, we need to contribute to these goals and integrate sustainability into our operations. However, I find discussions about Environmental, Social, and Governance (ESG) often narrowly focus on carbon emissions. While this is important, there are broader aspects of sustainability that need attention.

One challenge the pharma industry faces is extending sustainability efforts beyond direct operations to include the entire supply chain, which can be particularly complex when dealing with international suppliers. Collecting and enforcing sustainability data from a global network, especially from smaller suppliers, can be difficult. It’s a reality that will take time to address effectively.

At Adragos Pharma, we’re making strides by sourcing many raw materials locally, which helps enhance visibility and simplifies sustainability efforts. However, there is still work to be done. We have a roadmap with science-based targets, and we are committed to improving year after year. Our team is dedicated to tracking our progress and making sure we meet our sustainability goals.

What trends are shaping the future of the pharmaceutical industry, and how is Adragos Pharma adapting to these changes?​

The pharma industry is undergoing a period of strategic realignment, with companies reevaluating their focus; be that on small molecules or biologics.

When Adragos was founded, there were suggestions that to be a successful new player in the market, one would need to purely focus on emerging modalities, i.e. biologics, cell and gene therapy. Some even predicted that small molecules would be entirely replaced by newer technologies. Obviously, nonsense but it showed a certain hype and overly optimistic expectations that led to very high investments in the sector.

However, I recognized the enduring potential of small molecules and chose to concentrate our efforts in this area. It's remarkable to witness a resurgence of interest in small molecules, especially given the significant investments many companies have made in cell and gene therapies. This shift validates our early faith in the enduring power of small molecule approaches.