All About Pharma Companies

In the pharmaceutical industry there is a category of companies that have tasked themselves to help other companies provide better services to clients. This category of companies is commonly referred to as contract manufacturing organizations, (CMOs). This name is brought about by their nature of business. They operate on contract basis to help other companies in the industry by providing services like manufacturing of drugs and performing trial on the drugs before release into the market. The companies also help to ensure stability of the drugs by carrying out comprehensive research on the drugs. When a client is selecting a service provider, they are advised to do a proper background check to ensure that the service provider is trustworthy.

Advantages of contract manufacturing organizations

Some of the advantages of having these companies in the industry include the following;

The CMO helps their clients to expand the already available technology. This is made easier by the CMO because the client does not need to make any additions or reductions to its technological staff and resources.

When a pharmaceutical company works with third party manufacturing pharma companies, the production cost is greatly reduced. This is because the amount of capital invested by the pharmaceutical company is greatly reduced. The CMO provide technical services helping the client to avoid responsibility for the hidden costs that might come with production.

The merge between the CMO and other companies in the pharmaceutical industry has helped in increase development. This is due to the third party pharma company taking charge of some aspects of the companies. This frees up the client’s resources, staff and time to development of better products and higher production rate.

Disadvantages of contract manufacturing organizations

Despite the many advantages that these companies come with, there are some downsides that come with these companies being in the industry. Some of the disadvantages of the contract manufacturing organizations include the following:-

 When a contract manufacturing organization merges up with a client in the industry, the client cannot control the projects the CMO is in charge of. Only the company has direct control of all the aspects involved in the project. Some of the aspects include the cost, time to be taken to complete the project and the quality of the products among others. This may be a negative effect in the client because of the uncertainty on the outcome of the project. Poor quality products and slow delivery may be disastrous to the client.

 Security of the client’s information. During the merge between the client and the CMO, there has to be communication on the client’s data and information to the company. Poor selection of a service provider might lead to leaking of very important information on the client.


Contract manufacturing organizations(CMO), are also referred to as contract development and manufacturing organizations, (CDMO). These companies are companies that work on contract basis for other companies in the pharmaceutical industry. Their function is to ensure that the clients can increase their production and expand without an impact on their staff and resources. Clients should however be careful on the selection of service providers to prevent leaking of important information from their companies.