George Ntortas

UNPACKING CMO COST STRUCTURES, PROFITABILITY MEASUREMENTS AND STRATEGIC PRICING IMPLICATIONS

Pricing remains one of the most sensitive and complex aspects of pharma–CMO partnerships. Both sides often face challenges in aligning expectations around cost structures, value creation, and long-term agreements.

This workshop will unpack the economic architecture behind CMO pricing, from cost structures and profitability measurements to the strategic decisions that ripple across the pharma landscape. We will explore how to shift pricing negotiations from simple haggling to a collaborative process that co-creates value. Achieving this requires a better understanding of CMO cost structures, as well as a recognition of the specialised capabilities they bring to the table.

The workshop will also explore the underlying reasons behind significant pricing discrepancies among CMOs for the same product, shedding light on cost structures, profitability metrics, and strategic pricing decisions that shape the customer relationship.

Participants will gain a deeper understanding of the forces that drive pricing variability, and how these forces shape sourcing strategies, partnership dynamics, and commercial outcomes.

Key learning points include:

• Understanding the CMO cost structure
• Exploring factors influencing CDMO pricing
• Discussing profitability measurements and their impact on CMO pricing

• What will you gain from attending this workshop?

Pharma: Gain a deeper understanding of the pricing pressures CMOs face, from cost structures and operational constraints to profitability targets, and uncover why pricing models vary so widely across providers.

For CMOs: Gain clarity on how cost structure and profitability targets influence pricing strategy and how these factors are perceived by pharma clients. Learn how to position your value more effectively, differentiate your pricing model, and build stronger, more transparent partnerships. 

Ahead of the conference, we launched a delegate survey to gather insights on what participants hoped to gain from the three-day event, as well as the key challenges currently facing pharma contract manufacturing. The survey explored critical topics such as supply chain disruptions, the impact of geopolitical tensions, and the ongoing debate between localisation and centralisation.

In this session, our Advisory Board will review the survey findings, address delegates’ most pressing concerns, and facilitate an open discussion on the issues that matter most to those in the room.