This document summarizes a roundtable discussion with representatives from several contract manufacturing organizations on the trend of pharmaceutical companies consolidating their supplier base to work with fewer preferred providers.
The representatives observed that pharmaceutical companies are pursuing this approach to gain efficiencies from managing fewer relationships and to foster more strategic partnerships. Larger pharmaceutical companies are primarily driving this trend. When a contract manufacturer becomes a preferred provider, the relationship changes to involve more transparency, commitment to long term planning, and integration between the companies. The key factors for a contract manufacturer to become a preferred provider include having a strong track record of delivery, a customer-centric approach, and transparency to build trust in the relationship.