Imbalance in the CDMO Market and the Long-Term Implications

The cell and gene therapy (CGT) industry has witnessed remarkable growth over the past decade, driven by groundbreaking scientific advancements and treatments for indications with high unmet needs. The industry got a boost in attention and investment during the pandemic in 2020 more than doubling the dollars investment from the previous year and seeing a 20% increase in clinical trials. This ‘boom time’ was an undeniable benefit to the progress and adoption of new innovations and created a heavy incentive to build new, purpose-built cell and gene therapy manufacturing infrastructure, however, too many of the products that entered the clinic had no path to commercial viability. This rapid expansion had an equally rapid decline that has also led to a significant imbalance between the number of contract development and manufacturing organizations (CDMOs) and the number of clinical trials. This article explores how this disparity came about and how the market for manufacturing services will change as a result.

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