Contract manufacturing organizations (CMOs) are manufacturing organizations that manufacture products on behalf of other companies. In the pharmaceutical industry, CMOs or CDMOs (Contract development and manufacturing organizations) are used by companies of various sizes to support manufacturing needs, assurance of supply, and utilize industry expertise.
Contract Manufacturing – Who Knew Operations Could Sell?
What is Contract Manufacturing?
Types of CMOs
Embedded vs. Stand-alone In the pharmaceutical industry there are two main types of CMOs: independent and embedded.
A stand-alone CMO provides manufacturing or development on a contract basis and does not own products of their own.
An embedded CMO operates as a self-contained enterprise but exists within a larger pharmaceutical company. This is the model we use at AbbVie.
Benefits
- Reduce overall cost and time to market
- Scalability and flexible production capabilities
- Cost savings of upgrading and maintaining equipment
- Ease supply chain issues
- Resource allocation to focus on core competencies
Regulatory Inspections
Regulatory Agencies will audit CMOs used by companies selling drugs in their countries. Additionally, customers will audit the CMOs they use for manufacturing.
CMO vs CDMO vs CRO
Contract Manufacturing Organization (CMO) – Provide manufacturing services such as scale-up, registration, commercial production, and more Contract Development and Manufacturing
Organization (CDMO) – Provide both development and manufacturing services from discovery to commercial production
Contract Research Organization (CRO) – Provide a range of early-stage R&D offerings such as clinical trial services
Market Growth
In recent years, the pharmaceutical sector has expanded significantly. One of the primary contributors to this expansion is the growth of the pharmaceutical market, which has grown at an annual rate of 8.6%.
As a result of rising demand, many companies have outsourced work to CMOs and CDMOs to facilitate development and manufacturing operations during the clinical and commercial phases.
Operations Contract Manufacturing (OCM) at AbbVie
AbbVie CMO is a strategic business unit within AbbVie Operations. AbbVie Contract Manufacturing partners with companies across the globe to develop, scale and manufacture pharmaceutical products and successfully bring them to market by leveraging AbbVie’s technical and manufacturing expertise. Contract manufacturing fills excess plant capacity to help with cost absorption, supporting key initiatives, strengthening our expertise and contributing to AbbVie’s overall performance. OCM works with AbbVie’s manufacturing network to understand the internal pipeline and opportunities to fill anticipated capacity.
At a Glance
Manufacturing Locations
AbbVie CMO Services
Small Molecule
- Microbial Fermentation
- Custom API
- Oral Solid Dose
- Eye Care
- Hot Melt Extrusion
- Topical
Large Molecule
- mAbs
- Fill-Finish
- Antibody Drug Conjugates
