93 TWENTYFOURSEVENBIOPHARMA Issue 1 / March 2026 DCAT ROUNDTABLE Are customers prioritising cost control over resilience and innovation, or are you seeing a more balanced approach emerge? Customers are taking a more balanced approach, but with significantly greater financial discipline. Cost control remains important, particularly for emerging biotech companies managing tighter funding environments, but sponsors continue to distinguish between low-value cost savings and investments that materially reduce execution risks. In analytical testing, a lower cost option can quickly become more expensive if it leads to delayed method development, failed tech transfer, out-of-specification investigations, and/or regulatory complications. As regulatory expectations continue to rise, sponsors are often willing to invest in partners that deliver strong scientific expertise, inspection ready quality systems, and reliable timelines. Where do you see the most meaningful growth opportunities in the next 12–18 months - geographically or technologically? We have of course seen a real push toward building and expanding US manufacturing footprints, partly around supply chain resilience and partly around policy signals. Alongside that, demand is strongest in more complex APIs where technical capability really matters. For us, our growth strategy has historically focused on bringing in companies with specialized expertise that meaningfully expand our capabilities and strengthen our overall portfolio. Most recently, we doubled our capacity in analytical outsourcing, which reflects the growing need for those services. And we’ll continue to make investments where we see opportunities to best support our clients and their evolving needs. What is the biggest misconception pharma companies currently have about the CDMO/API supply environment? One common misconception is that outsourcing remains primarily a capacity-buying exercise, and that providers are largely interchangeable if they meet the scope at the right price. In reality, the most valuable outsourcing partners differentiate themselves through problem-solving capabilities and technical expertise. Many development delays are not purely capacity issues but stem from analytical strategy, impurity management, tech transfer challenges, and regulatory documentation gaps. Experienced partners that can address these issues early in development help sponsors avoid costly delays later in the lifecycle. How would you describe the mood of the outsourcing market right now - stabilising, cautious, or entering a new growth cycle? The pharma outsourcing market is not experiencing explosive growth, but it is certainly not contracting either. What we are observing instead is a period of stabilization, accompanied by a more deliberate and selective approach to outsourcing decisions. Following the significant surge in CDMO demand during the post-pandemic period, the past 18–24 months have been shaped by tighter biotech funding conditions and considerable pipeline reprioritization. As a result, many organizations paused or slowed new outsourcing commitments. Activity is now gradually increasing again, but the decision-making process has evolved. Programs that are late-stage, strategically significant, or approaching commercialization are continuing to advance. Earlier-stage programs, however, are progressing with greater caution and scrutiny. This does not represent a slowdown in outsourcing activity. Rather, it reflects a more disciplined and strategically focused market environment. To what extent are geopolitical pressures reshaping sourcing decisions, particularly around regionalisation and dual sourcing? Another notable shift is the growing prominence of supply chain risk in outsourcing discussions. Pharmaceutical companies are increasingly evaluating: - Regional supply strategies for both U.S. and European markets - Dual sourcing approaches for critical products - Greater geographic diversification of supplier networks This does not indicate a retreat from global supply chains. Cost considerations, regulatory expertise, and technical capabilities remain fundamental drivers of sourcing decisions. However, risk management is now integrated into sourcing strategies from the outset, rather than addressed reactively after disruptions occur. ERIN LAMARCA Business Development Manager Tjoapack
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