Week's news analysis

Visions and strategies for 2022 and after

By Editors - 06 September 2022

Rising labour costs, recruitment difficulties, increasing energy and commodity prices, and supply chain issues, have driven inflation much higher than was expected. Companies’ profit margins are being squeezed to some extent. The first signs of a worldwide crisis are starting to spread fears on stock markets. Investors are worried about the consequences of inflation for demand and corporate profits. Never before have business leaders had to face a series of successive crises as that of Covid 19, war in Ukraine, and the risks of recession.

And yet, the biopharmaceutical sector experienced one of its finest moments in 2021 with its vaccine successes. Still in 2021, 5,500 scheduled new clinical trials started, up 14% on 2020 and 19% on 2019. The fundamentals remain sound for biopharmacy and health.

However, market access and getting financing to set up clinical studies are the main difficulties being encountered by start-ups. The big question of concern to investors at the moment is that of how far inflation might go. Biopharmaceutical companies in the launch phase are particularly vulnerable to any market turbulence, as they have few simple ways of generating income or reducing costs while conducting the required clinical trials.

In coming months, it is highly likely that some biotech firms might not manage to raise the funds they need to finalise their clinical trials. Such a situation could have a big impact on the activity of CDMOs specialised in this market.

For its September issue, PHARMAnetwork has asked the CEOs of major CDMOs in Europe and the US to give their reactions to this crisis and its (first) consequences for the strategy of their groups. Their testimonies are full of ideas for the future and, as such, exciting.

How are the heads of these CDMOs addressing the crisis? What decisions have been driven by the situation so far, and how will they change the way their companies are managed this year and in the future? What are the impacts of this crisis on the bio/pharmaceutical manufacturing value chain and more particularly on CDMO activity in 2022? What measures and organisations are they rolling out to boost the resilience of their companies and ensure that they grow on their markets? What strategies are being implemented and how are environmental issues incorporated into these strategies?

PHARMAnetwork would like to thank the following CEOs for their highly relevant insights: Jan Kengelbach, CEO, Aenova Group; Aldo Braca, CEO, BSP Pharmaceuticals; Dr. Michael Quirmbach, CEO & President, CordenPharma; Alain Sainsot, CEO, GTP Bioway; Peter Burema, CEO, NextPharma; Pierre Banzet, CEO, Pharmatis; Javier López-Belmonte Vice President & Chief Financial Officer ROVI; Wolfgang Wienand, CEO, Siegfried; David Lescuyer, CEO, Skyepharma; Eric Goupil, CEO, Unither Pharmaceuticals ; Thomas Otto, Managing Director, Vetter.

TO READ CDMO CEOs: Visions and strategies for 2022 and after

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