As this analysis shows, contract manufacturing organizations (CMOs) can play an important role in the biotech industry and
can help create a potentially valuable investment. Based on our research, the CMO market is relatively undeveloped, especially
in mammalian cell technologies, and represents a significant opportunity. However, sizable capital requirements and long set-up
times for a manufacturing plant to begin operations often create barriers to entering this market.
However, we believe that a company with significant financial clout, an appetite and ability to take on risk, and the reputation
and ability to recruit top talent, can be well positioned to lead the biologics CMO market. With adequate scale and superior
operations, such a company could very well dominate the CMO market and potentially realize high economic returns.
Jayant Lakshmikanthan is a senior consultant at Deloitte Consulting LLP, 415.783.5288, firstname.lastname@example.org
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