PHARMA SPECIAL
Coming to America
US-based manufacturing and the continued rise of peptides were among the key themes for CDMOs at CPHI Frankfurt 2025. Andrew Warmington reports
The pharmaceutical industry has been though some turbulent times since COVID, with the boom and bust in demand for vaccines, supply chain disruptions and geopolitical tensions of all kinds, from the Biosecure Act to the threat of tariffs.
CDMOs have certainly not been exempt from the effects. Nonetheless, they continue to rise in importance. Some very large stands and the heavy footfall in Halls 5 and 6 of Messe Frankfurt during the latest CPHI show at the end of October exemplified this.
De Facto’ s Biobeat Report, released just ahead of the show, broadly reflected this positive outlook. This found that the global outsourcing market“ has demonstrated remarkable resilience”. Demand“ remains stable, sustained by consistent new drug launches, and CDMOs focused predominantly in clinical and commercial phase services have performed better in 2025”.
Biotech funding is increasingly the lifeblood of the industry and it has been anaemic for some time. However, the report and anecdotal evidence from the show floor suggest a gradual thaw, with the newly announced $ 50 billion NIH funding programme and the imminent popping of the AI bubble both contributing to a release of funds.
“ The medium-term CDMO winners, indication-specific examples aside, will be those that can advance biotech to Phase IIb fastest, as that’ s when a sale becomes more profitable,” commented Alex Heeley, Managing Partner at De Facto
CDMO services will likely see midsingle digit growth in 2026, albeit unevenly in terms of geography, indication and stage of development.“ CDMOs that differentiate through technology, equipment, and analytical expertise will be well positioned.
Smaller CDMOs may even hold an edge through niche specialisation,” noted report author Brian Scanlan.
Three trends the report mentioned were also at the forefront of the minds of CDMO executives I spoke with on the show floor, as well as being reflected in the announcements made before and during CPHI: 1. Increased investment in commercial manufacturing in the US, which was already ongoing because of the need to spread risk and secure regional supply chains, and is now being driven faster by the threat of tariffs and the drive towards‘ Made in America’
2. The continuing boom in peptides, mainly GLP-1s and mainly for obesity and diabetes, but in many other indications as well, creating huge opportunities for the larger CDMOs with the cash to invest in capacity
3. The emergence of new, highmargin modalities that draw on
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