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A simple heuristic for the build-vs-partner decision: Does your manufacturing process create unique intellectual property? If so, own it. If it merely consumes capital, partner with a CDMO. This preserves precious resources for R&D, clinical evidence, and commercialization.
Infinimmune selected KBI Biopharma as its manufacturing partner partly because KBI's Celexis cell line is highly portable. This foresight de-risks future global scale-up, ensuring the manufacturing process can be easily transferred to different facilities worldwide, a key consideration for long-term commercialization and partnerships.
The conventional wisdom for CPG startups was to be "asset-light" and use co-packers. However, owning the supply chain provides crucial control over quality, production schedules, and cash flow, preventing startups from being pushed aside by a co-packer's larger clients. This control is now a key diligence point.
The build vs. outsource decision is strategic. Building in-house is justified when manufacturing is a core competitive advantage or the process itself is your key IP. Otherwise, outsourcing to a CDMO offers critical speed to clinic and preserves capital.
A CDMO that promises a problem-free process without asking tough questions is a red flag. The best partners are those who challenge your assumptions early. This indicates they are engaged and invested in success, rather than being overconfident or apathetic.
Instead of building costly in-house GMP capabilities early on, a more effective strategy is to concentrate on the core preclinical science. By partnering with established CDMOs and consultants for the translation to GMP, startups can de-risk development and accelerate their timeline to an IND filing.
The primary challenge for many MedTech innovations is not the initial science but translating a lab process into a robust, scalable, and GMP-compliant manufacturing system. This requires a shift from proving a concept to ensuring consistent quality and patient safety.
Ona Therapeutics maintains a small team by following a simple rule: outsource functions that external experts can do better (like CROs and manufacturing) at a reasonable price. This allows them to focus all internal resources on their core, specialized competency of designing novel molecules and advancing their pipeline.
Companies, especially in early stages, should resist outsourcing production too quickly. Keeping a new process in-house is essential for understanding its pain points, which is a prerequisite for being able to specify clear, effective requirements to an external vendor later on.
Companies often mistakenly expect their CDMO to fill strategic gaps. A CDMO's role is to execute the plan provided. Handing over an incomplete process is a 'wish,' not a tech transfer, and forces them to improvise in ways that may not align with your regulatory or commercial goals.
Modern biotech startups succeed by outsourcing non-core functions, such as medicinal chemistry, that have become commoditized. This lean approach allows them to focus capital and talent on their unique, best-in-class technology, enabling them to do more with less funding.