Kyriakos Kansos and George Ntortas of Fuliginous Management Consulting identify the trends that will define biopharma outsourcing over the next 12 months.
In 2026 there are four forces are set to reshape the CDMO outsourcing landscape.
1. Modalities Face Capacity-Demand Mismatches
Biologics and advanced modalities continue to dominate growth. However, several workforce reduction announcements in the bio CDMOs industry—especially in cell and gene therapies—point to demand not rising fast enough to fully absorb previously expanded capacity. This mismatch is particularly acute where multiple players invested heavily in the same biologics technologies, or where clinical or commercial momentum softened.
Small molecules will remain highly relevant, but innovation will sit largely in high-potency oncology, CNS, and orphan indications. Combination products, prefilled syringes, cartridges, and long-acting injectables are shaping capacity decisions. New products come with small sales volumes that don’t require extensive manufacturing capacity.
2. Geographic Diversification Becomes Standard Practice
Pharma companies increasingly push for geographic diversification, localization, and dual sourcing to deal with supply disruptions, geopolitical tension, and inflation pressure.
CDMOs are forced to build partnerships with critical material suppliers, manage inventory and safety stock more carefully, and increase discipline in capacity planning.
3. Partnership Models Evolve Beyond Transactional Relationships
Recent challenges—from supply chain volatility to the rise of digital workflows—have put many pharma-CDMO partnerships to the test. Resilience in partnerships comes from shared visibility and shared ownership. Resilient partnerships will come from parties having the structure and mindset to adapt together.
Pharma companies and CDMOs will make efforts to increase alignment, communication, transparency, trust, collaboration mindset, and cultural fit. CDMOs will be expected to behave more like ecosystem partners—co-developing solutions, sharing risks, and enabling speed. Regional CDMOs with unique technologies and high customer intimacy will outperform pure capacity-based players.
4. Cost Management and Talent Constraints Intensify
Pricing strategy, cost modeling, and robust RFQ processes and quotation tools will matter even more as margins tighten.
Costs across the board—labor, utilities, raw materials, consumables, and compliance—are increasing and fluctuating. However, CDMO prices do not reflect the cost fluctuation as repricing discussions are usually delayed or inconsistent.
CDMOs should implement robust cost monitoring systems and monitor profitability per project or case continuously—not once per year.
Talent scarcity—especially in technical professionals like QA/QC, microbiologists, validation engineers, maintenance experts, and biologics operators—will remain a structural bottleneck. CDMOs will need to invest more in training, standardized procedures, improved governance, and digital tools that reduce dependency on a few key individuals.
The Bottom Line
2026 will reward CDMOs that combine the right technical niche with commercial discipline and relationship depth. Technology alone won’t differentiate; mindset, reliability, transparency, and customer value creation will.
Don’t miss Fuliginous’s Pricing Workshop at CDMO Live Europe 2026. Book your ticket
