Outsourcing to contract development and manufacturing organizations (CDMOs) has become an increasingly practical solution, allowing pharmaceutical companies to explore novel drug development pathways with significantly reduced upfront investment and risk.
With the proliferation of CDMOs ranging from large multinational networks to highly specialized boutique firms, the industry has grown increasingly complex. Selecting the right partner isn’t simply about capacity or capability; it’s also about alignment. The right CDMO partnership can be a competitive advantage. The wrong one can delay progress, drain resources, and derail innovation.
Much of the industry discussion around selecting a CDMO tends to focus on technical qualifications, regulatory track records, and infrastructure. These are undeniably important, but what often gets less attention and can make a profound difference in day-to-day execution is the operational model behind the CDMO itself. The size of a CDMO fundamentally shapes how its teams operate, how quickly they can respond, how closely they work with clients, and how invested they are in the success of each program.
Partnering with the largest players may seem like a safe choice; however, for many companies, this experience can translate into long decision cycles, tiered communication structures, and a feeling of being one among many. On the other end of the spectrum, small CDMOs may offer high levels of attention but can struggle with scalability, resourcing, or breadth of technical expertise.
The “Goldilocks” CDMO is large enough to provide robust capabilities and focused enough to prioritize individual clients. They represent a unique and often underappreciated segment of the market. These are the partners that can offer the best of both worlds: technical depth with operational agility, global quality standards with personalized service, and cost effectiveness without compromising execution.
Drawing on industry insights and real-world experience from Douglas CDMO, this article explores why size matters in CDMO partnerships and how partnering with the right-sized organization will yield significant benefits.
The flexibility factor
The ability to adapt quickly to compressed timelines, complex product requirements, and shifting regulatory expectations can make or break a development program. Although many CDMOs claim to offer flexibility, the reality is that size, structure, and internal decision-making processes can constrain or enable that.
Larger CDMOs, which are usually multinational and multisite, may offer extensive capabilities, but they also bring with them the inertia of complex systems and layers of corporate oversight. Project decisions often require alignment across global teams, and processes are standardized to support scale rather than individual client needs. In such environments, sponsors may find themselves waiting: for approvals, for responses, and for available capacity.
Mid-sized or boutique CDMOs, by contrast, are frequently positioned to respond with greater speed and adaptability. Their streamlined organizational structures allow decisions to be made closer to the work and by the people directly involved. This is particularly valuable when working with sponsors developing novel or specialized products, who may need more iterative approaches or late-stage flexibility.
Susan Lynch-Smith, Head of Business Development at Douglas CDMO, explains further:
“A key difference between boutique CDMOs and large CDMOs is in project management. Where large organizations rely on rigid, standardized systems, boutique CDMOs operate with leaner, more responsive teams. That allows for faster decision-making and closer alignment with the client as the project evolves, especially when timelines shift or unexpected challenges arise.”
Susan Lynch-Smith, Head of Business Development, Douglas CDMO
Flexibility is not just about how quickly a partner moves; it’s about why they move quickly. In a mid-sized CDMO, speed is often driven by ownership: the same people making technical decisions can be in direct conversation with clients, aligning goals and addressing roadblocks without delay.
This translates into real-world efficiencies across development and manufacturing timelines, according to Susan:
“Boutique CDMOs can pivot quickly when projects evolve. Whether it’s reallocating resources, responding to new data, or adjusting protocols late in development, the operational agility exists to keep things moving. That kind of responsiveness is hard to replicate in larger CDMOs, where change can get bogged down in process.”
In an industry where time lost is opportunity lost, the ability to move swiftly and intelligently is not just a convenience, it’s a competitive edge. For sponsors seeking to avoid the bottlenecks and bureaucracy that can come with larger CDMOs, a more agile partner may offer a fundamentally different and more productive experience.
Right sized for innovation
Flexibility also extends to risk appetite, and risk often underpins innovation. Mid-sized CDMOs may be more open to technically challenging or commercially uncertain projects that don’t fit the risk profiles or economic models of larger providers. This willingness to engage with complexity rather than avoid it can make a meaningful difference for emerging biotechs and smaller pharmaceutical companies.
Boutique CDMOs often build their reputations in focused, high-skill areas. Rather than offering everything to everyone, they develop deep expertise in targeted technologies and dosage forms. That specialization can give sponsors access to capabilities not easily found at larger organizations built around scale. Susan says that Douglas CDMO is a case in point with its focus on high-potency softgels:
“We’ve deliberately focused on technically complex products, particularly high-potency softgels and specialized liquid formulations. These can be challenging to develop and manufacture, but that is where we have built our strength.”
In a landscape where innovation demands custom solutions, partnering with a mid-sized CDMO that has a reputation for solving difficult problems can be a strategic advantage. From formulation through to scale-up, sponsors benefit from teams who both understand the complexities of their product and are motivated to overcome them.
Personalized client relationships
In complex development programs, communication and continuity matter just as much as technical expertise for a successful partnership. Mid-sized CDMOs are usually better positioned to deliver consistent, personalized engagement throughout a project’s lifecycle. Without the fragmentation that can occur in larger organizations, sponsors typically work with the same core team from onboarding through to delivery.
Speaking from Douglas CDMO’s point of view, Susan says it’s crucial to understand that each client and project is unique. “We begin with thorough consultations to understand specific needs, then develop detailed plans tailored to each program,” she says.
“This individualized approach continues throughout the partnership. Our experienced scientists and engineers collaborate directly with clients, adapting processes and solutions as the project evolves, giving the stability and the responsiveness needed for success.”
Mid-sized CDMOs often have fewer handovers and less departmental siloing, meaning that sponsors navigating high-stakes developments benefit from an integrated, responsive relationship that is a key driver of project success.
Balancing cost and value
Cost is a critical consideration when selecting a CDMO, and value extends beyond the bottom line. Although larger CDMOs may appear more cost efficient because of economies of scale, that advantage can be offset by slower responses, rigid processes, and a lack of tailored attention. Mid-sized CDMOs offer a compelling alternative: cost-effective solutions that don’t compromise on quality, speed, or service.
“There’s a misconception that boutique CDMOs lack the infrastructure or sophistication of larger providers – but in reality, we combine deep technical expertise with operations that enable us to deliver real value, especially for complex and evolving projects. We overcome any misconceptions by being completely transparent about our capabilities and then proving them.”
Susan Lynch-Smith, Head of Business Development at Douglas CDMO
Mid-sized CDMOs can often avoid the overhead and siloed structures typical of larger CDMOs, so resources can be deployed more precisely. This agility allows for smarter investment into client-specific needs, whether that’s additional development work, protocol revisions, or accelerated timelines. Challenging a market that frequently equates high value with high volume, mid-sized CDMOs focus on long-term and strategic partnerships, technical depth, and tailored solutions for project success instead of being solely focused on high-volume outputs.
The emphasis on tailored solutions over high-volume output can also result in more cost-effective outcomes in the long run. The ability to align resources precisely with the needs of each project means mid-sized CDMOs can deliver maximum value through technical rigor and operational efficiency, avoiding the budget blow-outs that often occur with large CDMOs because of their broad, inflexible infrastructure. For projects that demand both scientific depth and fiscal discipline, mid-sized CDMOs offer a balanced approach that is not based solely on economies of scale.
“Being mid-sized gives us the best of both worlds,” Susan notes. “We have the experience and capabilities, and we’re also nimble enough to meet our clients where they are, financially and strategically.”
Is a boutique CDMO right for you?
Douglas CDMO embodies the core advantages of a boutique CDMO: agility, technical depth, and a commitment to personalized service that results in excellence. Unlike large CDMOs, boutique CDMOs operate with a focused project load, allowing for greater responsiveness, tailored solutions, and a deeper investment in each client’s success. This approach is especially valuable for complex, high-value projects that demand close collaboration and adaptive thinking.
With over 57 years of experience, Douglas CDMO offers end-to-end capabilities across a range of dosage forms, excelling in softgel and liquid formulations. As a privately owned, family-run company, Douglas CDMO prioritizes long-term partnerships and strategic alignment with clients’ goals. Whether supporting early development, pilot scale-ups, commercial manufacturing, or packaging and distributing, they provide right-sized solutions for success. For companies seeking a partner that values collaboration, excels in problem solving, and delivers quality, cost-efficient, tailored support, a boutique CDMO may be the ideal choice.
Susan captures the essence of boutique CDMOs like Douglas with a final reflection:
“We’re large enough to deliver, small enough to care, and committed enough to solve problems others won’t touch.”
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