Article | April 2, 2018

A Balanced Distribution Of Risk: Is Your CDMO Relationship Set Up For Success?

Source: KMC Systems
A Balanced Distribution Of Risk: Is Your CDMO Relationship Set Up For Success?

The word “partnership” is casually used by negotiators in the opening remarks of today’s contract discussions. In the past, a partnership was defined as two parties entering into a contractual agreement, with each sharing the benefits and risks of the relationship. However, over time, the repetitive use of this term has caused it to lose meaning. Now, contract development and manufacturing organizations (CDMOs) are often pressured to enter into situations where there is an uneven distribution of risk. A true partnership should define terms that balance the risk and reward for each party. When that is achieved, an amicable business arrangement is likely and contentious relationships can be mitigated.