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Paucity of infrastructure, specialized capabilities and operational efficiency lead new companies opt for contract development and manufacturing organizations (CDMOs) in nutra manufacture, said Yuvraj Datta, director of manufacturing & process excellence, Zeon Lifesciences.
CDMOs have emerged as pivotal players in the industry, providing a lifeline to nutraceutical innovators who face significant challenges in bringing their products to market. These organizations offer a comprehensive suite of services, including formulation development, clinical trial management, regulatory support, and large-scale manufacturing.
This end-to-end service provision is particularly advantageous for companies that do not possess in-house facilities or the internal staff competence required to handle the intricate processes involved in biologic development, he added.
The nutraceutical industry is witnessing a paradigm shift in its manufacturing strategies, increasingly leaning on CDMOs. This reliance stems from the burgeoning need for specialized capabilities and operational efficiency, particularly among newer and smaller companies that lack the necessary infrastructure and expertise to navigate the complex path from clinical development to commercial-scale production, he stated.
The Covid-19 pandemic further underscored the indispensability of CDMOs. The global health crisis placed unprecedented stresses on manufacturing capabilities, revealing vulnerabilities in supply chains and production capacities. In response, many nutraceutical companies have adopted outsourcing not merely as a contingency plan but as a core component of their long-term manufacturing strategies. By partnering with CDMOs, these companies can swiftly adapt to fluctuating demands, ensuring continuity and resilience in their operations, Datta told Pharmabiz.
Moreover, the post-pandemic landscape has highlighted the strategic importance of expanding into emerging markets. Nutraceutical companies are increasingly looking beyond established markets to tap into regions with high growth potential. However, these emerging markets often present unique challenges, including limited local manufacturing capabilities and stringent regulatory requirements. CDMOs offer a viable solution by providing access to state-of-the-art manufacturing infrastructure and deep regulatory expertise, ensuring that products meet local compliance standards and reach consumers efficiently, he said.
The advantages of opting for CDMOs extend beyond mere operational efficiency. Cost-effectiveness is a significant driver of this trend. Building and maintaining in-house manufacturing facilities can be prohibitively expensive, particularly for smaller companies. CDMOs allow these companies to avoid hefty capital expenditures, converting fixed costs into variable ones and improving their financial flexibility. Additionally, CDMOs bring specialized capabilities to the table, including advanced technologies and experienced personnel, which can significantly enhance the quality and innovation of nutraceutical products, said Datta.
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