The impact of biologics on the future of small molecules
Jack Shute of Charlton Morris spoke with major small molecule CDMOs about the sector ’ s future
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have spent the last seven years recruiting across the CDMO and pharma space . During which one of the biggest changes has been the rise of biologics in both production and conversation . Biologic drugs themselves are not new . They have been around since human insulin was introduced in the early 1980s . However , amidst the recent move toward personalised healthcare and advances in areas like genomics , investment in , and excitement around , biologics has skyrocketed . Their rise has been such that in the recent past , many businesses and manufacturers heralded the rise of biologics as the ‘ death ’ of small molecule . That theory has been widely debunked of late , as the small molecule market has continued to thrive , with small molecule FDA approved drugs out performing biolgics . However , I wanted to get an insider perspective on the impact that the rise of biologics has had . Working in the search space , I am in the fortunate position of having access to a range of CDMO businesses to explore this topic with . I spoke with representatives from leading CDMOs to find out how they are approaching the market .
Van Nieuwenhove : Minakem seeks to put the customer everywhere in the process
Staying at the forefront
We started by talking about innovation in small molecules . Staying ahead of the competition in a crowded and mature market is a challenge . It is no surprise that everyone I spoke with discussed continuous innovation as being key to their plans . However , the approach to attaining it differed significantly between the businesses . One route is M & A activity , something that came up in my conversation with Steve Barr , VP of business development for Pharmteco , SK ’ s CDMO business . It takes multiple measures to stay ahead , Barr said , including continuing to ensure the optimum balance of capacity and capability needed . This can be achieved by “ possible acquisition of ex-pharma facilities and partnership or consolidation with other CDMOs ” to help strengthen the portfolio . Tom Moody , Almac ’ s VP for technology development and commercialisation told me that , investment in infrastructure and technology has been key for them too , with a recent $ 25 million investment in their small molecule capabilities . Almac offers customers a complete supply chain , from building blocks to registered starting materials to API manufacture and the necessary associated technologies to facilitate their manufacture . “ Innovation is not always new technology , it is also in proposal services , the service offering … and the supply chain ” said Frédéric Besançon , COO of Novasep ’ s Synthesis business . Fine-tuning the service for the future as well as the end product for customers is often an easier route to pursue for smaller CDMO businesses , which can be more agile and adaptable in their approach . Thierry van Nieuwenhove , CEO of Minafin ’ s
Robinson : Most innovator molecules will still be small molecules
End Markets division , echoed this . He said that the company ’ s aim is “ really to understand what our customer needs and make sure that we answer those needs ” which extends to putting “ the customer everywhere in our processes ”.
Future of small molecules
The next stage in our conversations revolved around that future . What does it look like for the small molecule space ? According to Jordi Robinson , senior director of business development for Asymchem , the future is bright . He believes that “ the majority of the market for innovative pharmaceuticals will continue to be made up of traditional , small-molecule API for some time yet ”. While the market is “ moving towards more personalised medicines , the number of launched large molecule API is still relatively small ,” Robinson said . In Moody ’ s opinion , the future of small molecule will be with CDMOs , because most large and mid-size pharma companies are keeping
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