Pharma Manufacturing Outsourcing, Trends in Oral Solid Dosage CDMO Partnerships and Global Expansion

The global pharmaceutical industry is in the midst of a transformation, increasingly turning to outsourcing as a strategic lever to improve efficiency, reduce time-to-market, and enhance scalability. Among the various dosage forms, Oral Solid Dosage (OSD) continues to lead due to its widespread use, patient convenience, and manufacturing stability. As a result, contract development and manufacturing organizations (CDMOs) have become critical partners in the development and production of tablets, capsules, and other solid oral forms. This article explores the latest trends in pharma manufacturing outsourcing, particularly in the OSD space, and analyzes how CDMO partnerships are expanding globally.

The global oral solid dosage contract manufacturing market size is anticipated to rise from US$ 38 Bn in 2025 to US$ 57.9 Bn by 2032. It is projected to witness a CAGR of 6.2% from 2025 to 2032.

The Ongoing Rise of Oral Solid Dosage Forms

OSD forms—primarily tablets and capsules—account for more than 50% of all pharmaceutical products on the market. They are favored for their cost-effectiveness, long shelf life, ease of transport, and patient-friendly administration. Advances in formulation technology have made it possible to deliver modified-release, targeted-release, and fixed-dose combinations through solid dosage forms, enhancing therapeutic effectiveness and patient compliance.

As the complexity of OSD formulations grows, particularly with high-potency APIs (HPAPIs) and specialty drugs, pharmaceutical companies are relying more on CDMOs with the necessary expertise, equipment, and regulatory track record.

Why Outsourcing Oral Solid Dosage Manufacturing Makes Strategic Sense

Pharmaceutical companies today are under pressure to reduce development timelines, manage global supply chains, and adhere to increasingly complex regulatory frameworks. These challenges have led to a surge in demand for outsourcing, especially in oral solid dosage manufacturing.

Key reasons driving this outsourcing trend include:

Capital Efficiency: Avoiding large upfront investments in equipment and facilities
Access to Specialized Skills: Leveraging CDMOs with experience in regulatory submissions, scale-up, and tech transfer
Speed to Market: Faster turnaround from clinical trial supply to commercial production
Flexibility: Ability to manage both large-scale commercial runs and small-batch personalized medicine production

For startups and small to mid-sized pharma companies, outsourcing to CDMOs has become the most viable model to compete in the market.

Evolving CDMO Partnerships in the OSD Sector

CDMOs have moved beyond being simple contract manufacturers. Today, many offer end-to-end solutions covering pre-formulation, clinical trial materials, process optimization, regulatory support, and commercial-scale manufacturing. This evolution has led to more collaborative partnerships between pharma companies and CDMOs.

Some key partnership trends include:

Integrated Services Models: CDMOs offering formulation development, analytical testing, regulatory filing support, and packaging under one roof
Long-Term Strategic Alliances: Pharma companies forming multi-year agreements to ensure capacity, quality, and innovation continuity
Tech-Transfer Excellence: CDMOs developing robust tech-transfer protocols to ensure smooth transitions from R&D to commercial production

These partnerships are increasingly seen as a strategic differentiator, enabling companies to remain agile in a highly competitive environment.

Technological Innovations Enhancing CDMO Capabilities

The shift toward advanced OSD formulations has spurred investment in innovative manufacturing technologies by CDMOs. Key advancements include:

Continuous Manufacturing: Unlike batch processing, this enables uninterrupted production, reducing cycle times and improving quality control
3D Printing for Tablets: Emerging applications in personalized medicine and dose titration
Automated Packaging and Serialization: Ensuring compliance with global anti-counterfeiting regulations
Real-Time Release Testing (RTRT): Accelerating batch release with real-time quality assurance

These technologies are not just improving production efficiency; they’re also helping meet stringent regulatory requirements and support complex, high-value therapies.

Regulatory Compliance and Global Market Access

One of the most critical roles CDMOs play is navigating the complex global regulatory landscape. Regulatory compliance is especially vital for OSD products, given their prevalence in both prescription and over-the-counter (OTC) markets.

CDMOs that invest in:

Regulatory Affairs Teams
cGMP-certified Facilities (FDA, EMA, MHRA, etc.)
Inspection Readiness Programs
Global Filing Support (ANDAs, NDAs, CTDs)

...are becoming the preferred partners for multinational pharmaceutical companies. Compliance and a strong quality culture remain essential for gaining and retaining client trust.

Global Expansion of CDMO Footprints

The geographic expansion of CDMO services is another trend reshaping the oral solid dosage outsourcing market. Driven by cost considerations, proximity to end markets, and regional regulatory strategies, CDMOs are expanding across key markets:

North America and Western Europe: Home to the most advanced CDMOs, these regions remain dominant for high-value, high-compliance projects.
Asia-Pacific (India, China, South Korea): Known for cost-effective manufacturing, increasing regulatory maturity, and a growing domestic pharmaceutical sector. Indian CDMOs, in particular, are leaders in generics and high-volume tablet production.
Eastern Europe and Latin America: Emerging as alternative manufacturing hubs due to skilled labor and government incentives for pharma investments.

Many CDMOs are adopting “hub-and-spoke” models, setting up regional facilities for packaging, logistics, and late-stage manufacturing while centralizing R&D and high-tech production.

Growing Focus on Specialized OSD Manufacturing

While mass-market tablets and capsules remain vital, there is increasing demand for specialized oral solid dosage products, such as:

Modified-Release and Controlled-Release Tablets
Orally Disintegrating Tablets (ODTs)
Pediatric and Geriatric-Friendly Formats
Low-Dose HPAPI Tablets

CDMOs are adapting to these niche demands by investing in containment technologies, flexible production lines, and modular cleanroom environments.

Moreover, as the world shifts toward personalized medicine and precision dosing, CDMOs must support low-volume, high-value manufacturing with stringent quality control.

Sustainability in Pharmaceutical Manufacturing

Sustainability is fast becoming a core criterion in CDMO selection. Pharmaceutical companies are under increasing pressure to meet Environmental, Social, and Governance (ESG) goals. CDMOs that prioritize:

Green chemistry in formulations
Waste reduction and recycling
Energy-efficient equipment
Eco-friendly packaging options

...are gaining favor, especially among global pharma companies with sustainability reporting obligations. This shift is also prompting investments in carbon-neutral manufacturing facilities and digital platforms to monitor environmental performance.

Conclusion: The Strategic Role of CDMOs in the Future of OSD Manufacturing

As oral solid dosage forms continue to dominate pharmaceutical product pipelines, outsourcing their development and manufacturing to experienced CDMOs is becoming not just common—but critical. Pharma companies are no longer looking for vendors, but for strategic partners who can offer speed, scalability, regulatory know-how, and technical excellence.

The global expansion of CDMO capabilities, coupled with technological innovation and sustainable practices, is redefining how oral solid dosage drugs are brought to market. In an increasingly complex and competitive industry, the right CDMO partnership may be the key to unlocking both operational efficiency and commercial success.