By Aarti Chitale, Senior Industry Analyst, Healthcare and Life Sciences
The Drug, Chemical & Associated Technologies Association (DCAT) Week 2025 brought together leading CDMOs (Contract Development and Manufacturing Organizations), CROs (Contract Research Organizations), CMOs (Contract Manufacturing Organizations), and global pharmaceutical and biopharma companies. Held in New York during March 17-20, 2025, the event focused on pharmaceutical innovation, industry outlook, capacity expansion, and supply chain resilience, driven by the increasing digitization of drug development and manufacturing.
As pharmaceutical innovation continues to reshape the industry, key focuses at DCAT Week 2025 included manufacturing capacity expansion, supply chain resilience, digital transformation, and strategic collaborations.
Expanding Manufacturing Capabilities
With over 23,000 molecules in active development across preclinical to Phase 3 stages, the demand for outsourced clinical trials and large-scale manufacturing is surging. To meet this need, CDMOs and API (active pharmaceutical ingredient) manufacturers are aggressively expanding their capacities:
- BioDuro announced a new peptide synthesis manufacturing facility in Shanghai and an additional 130,000 liters of reactors set to open by September 2025.
- Thermo Fisher Scientific is expanding its oral solid dosage facilities in the US, including a new site in Plainville, Massachusetts.
Beyond capacity expansion, CDMOs are prioritizing sustainability by adopting green chemistry principles such as biocatalysis, minimizing hazardous materials, and optimizing resource use. With 87% of biopharma manufacturers targeting renewable electricity by 2030, CDMOs must align with evolving sustainability regulations and partner expectations.
As pharmaceutical innovation continues to reshape the industry, key focuses at DCAT Week 2025 included manufacturing capacity expansion, supply chain resilience, digital transformation, and strategic collaborations.
Strengthening Supply Chain Resilience
In 2024, US drug shortages hit 277, highlighting the vulnerabilities in pharmaceutical supply chains. Shrinking profit margins, due to imminent patent expirations that could cut pharma revenues by over $200 billion, further intensify the need for robust supply chain strategies.
Key industry responses include:
- BioXcell expanded its global distribution network to Beijing, complementing its centers in Germany, Singapore, and Korea.
- Avantor, Inc. invested in Poland to bolster its global manufacturing network and ensure the steady supply of high-quality bioprocessing products.
- Companies are turning to financial modeling and reshoring strategies to mitigate risks arising from geopolitical trade tariffs and drug pricing reforms.
Digitization: A Key Enabler of Efficiency
To enhance supply chain resilience, pharmaceutical companies and CDMOs are increasingly integrating AI and digital solutions for better demand forecasting, resource allocation, and production planning. Solutions from RapidResponse, MRPEasy, and ABCplan are helping streamline operations.
Industry insights reveal that implementing generative artificial intelligence (GenAI) copilot tools in manufacturing can lead to:
- 5% reduction in breakdown time
- 2-3% decrease in supply chain costs
- ~25% reduction in workload for planners
- 30% reduction in execution time
Fostering Innovation & Strategic Collaborations
According to Frost & Sullivan’s Global Pharmaceutical Industry Outlook 2025, the pharmaceutical market, valued at $1.67 trillion in 2024, is expected to grow at a 7% CAGR through 2030. Oncology remains the dominant therapeutic area, comprising over 35% of the clinical pipeline, while GLP-1 receptor agonists are gaining traction, with five new therapies set for launch in 2025, including Novo Nordisk’s highly anticipated CagriSema.
Strategic partnerships between pharma companies and CDMOs are playing a crucial role in accelerating the large-scale manufacturing of these therapies:
- Corden Pharma partnered with Viking Therapeutics to support the development and manufacturing of GLP-1 drug candidate VK2735.
- Lonza, now operating as a pure-play CDMO, announced a collaboration with Exogenus Therapeutics to develop a GMP-compliant process for Exogenus’ lead exosome-based therapy, Exo-101.
- Samsung Biologics leveraged its DCAT participation to establish multiple new industry partnerships.
Industry Outlook & Future Prospects
DCAT Week 2025 underscored the importance of collaboration between CDMOs, CROs, CMOs, and pharmaceutical innovators. With the growing need for outsourcing and manufacturing, CDMOs are ramping up capacity, embracing green chemistry, and integrating AI-driven digital solutions to strengthen supply chain resilience. The event also highlighted the industry’s commitment to strategic partnerships, ensuring a sustainable and innovation-driven future for pharmaceutical manufacturing.
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