83 TWENTYFOURSEVENBIOPHARMA Issue 1 / March 2026 DCAT ROUNDTABLE the prolonged funding drought means there will inevitably be a lag before new projects enter the clinic. To what extent are geopolitical pressures reshaping sourcing decisions, particularly around regionalisation and dual sourcing? Recent US legislation has elevated these conversations to board level. Companies are now carefully weighing the balance between risk mitigation and the cost efficiencies available in certain regions, with sourcing decisions increasingly viewed through the lens of downstream company valuation and cash flow impact. Are customers prioritizing cost control over resilience and innovation, or are you seeing a more balanced approach emerge? Cost control and cash flow management were critical for biotech survival in 2025. Where it was once standard practice to advance both a lead compound and a backup candidate simultaneously, many companies found themselves having to focus exclusively on their frontrunner to hit key milestones – with the backup candidate, often the one with the stronger profile, placed on hold. Where do you see the most meaningful growth opportunities in the next 12–18 months - geographically or technologically? Timeline compression will always be a priority for biotech. Any technology that meaningfully shortens development timelines and reduces program risk represents a great growth opportunity, and this is where we expect to see the most significant investment and innovation over the coming 18 months. What is the biggest misconception pharma companies currently have about the CDMO/ API supply environment? Pharma/Biotech companies continue to treat CDMOs and API suppliers as commoditized, easily replaceable vendors. Those that approach CDMOs as strategic manufacturing partners early in the product lifecycle are far better positioned to secure capacity and maintain supply continuity. They should be asking “Who can reliably manufacture our product at scale – and will prioritize us when capacity is constrained?” How would you describe the mood of the outsourcing market right now - stabilising, cautious, or entering a new growth cycle? Off the back of JPM 2026, the word on the proverbial street seems like the market is moving back into a new growth cycle. There is a positive sentiment but this time it is measured. The client conversations that I’m in almost every day are fewer speculative proof of concepts and more conversations that assume the oligonucleotide asset has the opportunity to be manufactured at large scale. Funding is there, but drug innovators are performing thorough due diligence about where they place work and who they partner with. That’s especially true for anything innovative or capital-intensive. Early-stage demand is still developing, but the tone has shifted from “wait and see” to “let’s get ready when we succeed.” The other difference versus the past is that customers are engaging earlier on manufacturing scale questions at the proof-of-concept stage. There’s more realism around timelines, capacity, and what it takes to manufacture a medicine, “if you can’t manufacture a medicine, you don’t have a medicine”. So yes, growth is coming but it is well researched and technology selective. To what extent are geopolitical pressures reshaping sourcing decisions, particularly around regionalization and dual sourcing? Geopolitics has gone from being a background risk to something that actively shapes how programs are designed from day one. This isn’t merely a planning scenario exercise anymore. The BIOSECURE Act, tariff uncertainty and government supported onshoring manufacturing initiatives and broader trade tensions have made it clear that cost alone can’t be the deciding factor especially for late-stage or commercial assets. Though the sentiment is still that “all roads lead to China”, even these manufacturers are increasingly investing in US and EU supply strategies to please their customers. What’s changed most is behavior around new programs. Existing products tend to stay where they are because tech transfer is painful and cost PIERRE BARRATT VP, Technical Client Services Codexis
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