The contract development and manufacturing organization (CDMO) sector has emerged as a key partner in new drug development. This was evident from the strategic investments, partnerships, and expansions witnessed in the third quarter (Q3) of 2025.
Several CDMOs, such as Cohance Lifesciences, Fermion Oy, Axplora, AGC Pharma Chemicals invested in new
projects. Others, including Veranova, Aenova, and Biosynth, expanded
capacities, while Ofichem strengthened its
footprint with the acquisition of Avivia BV. CDMOs like Fareva, Evonik, and Samsung Biologics forged strategic
partnerships for growth.
During Q3, the sector continued to adopt
artificial intelligence (AI). This prompted the US Food and Drug Administration
(FDA) to issue guidance that recognizes the
increasing use of AI and data analytics in drug development.
View CDMO Activity Tracker for Q3 2025 (Free Excel Available)
Cohance, Veranova invest in bioconjugation suites in US; ChemExpress
inks ADC deal
Earlier this year, Indian drugmaker Suven Pharmaceuticals Limited merged with leading
CDMO Cohance Lifesciences Limited. The merged entity — Cohance Lifesciences — has invested US$ 10 million in a current Good
Manufacturing Practice (cGMP) bioconjugation suite at its subsidiary NJ Bio in Princeton, New Jersey.
NJ Bio is executing a major program for an existing
innovator client with multiple antibody-drug conjugate (ADC) candidates.
Cohance also announced an INR 230 million
(approximately US$ 2.58 million) investment in a cGMP oligonucleotide facility
at its Hyderabad (India) site.
Veranova’s Devens
(Massachusetts) site successfully passed a routine FDA cGMP surveillance inspection with a “No Action Indicated” (NAI) classification. Earlier, the company had initiated a US$ 50 million investment to expand
its ADC and bioconjugate capabilities
at its Devens site. This includes a 9,000-square-foot facility expansion with a new process development lab, two additional cGMP suites, and state-of-the-art bioconjugation development and manufacturing capabilities. These initiatives strengthen the site’s highly potent API (HPAPI) and ADC development and manufacturing capabilities.
Biosynth has expanded its Berlin facility with a new GMP bioconjugation suite. The expansion supports the company’s manufacturing capabilities in conjugate vaccines, conjugate drugs, activated polyethylene glycol (PEGs), and
polymer-based drug delivery excipients.
ChemExpress, Mabwell Bioscience, and Insilico Medicine have entered into a strategic partnership to jointly develop a
large ADC compound library and advance next-generation ADC candidates. The collaboration combines Mabwell’s antibody and ADC technology, Insilico’s AI-powered drug design platform, and ChemExpress’s expertise in linker-payload chemistry. Together, they aim to build a complete, AI-driven ADC development model that accelerates discovery, optimization, and commercialization. This partnership is expected to enhance R&D efficiency and deliver safer, more effective cancer treatments.
View CDMO Activity Tracker for Q3 2025 (Free Excel Available)
Fermion, Axplora, Aenova increase API manufacturing capacities; ICE
Pharma expands India facility
Finnish CDMO Fermion Oy has launched a renovation project at its Hanko
(Finland) production site to modernize its API manufacturing capabilities. This
expansion is part of Fermion's broader strategy to increase production, enhance
flexibility in the manufacturing of both existing and future pharmaceutical
products, and enable potential contract manufacturing opportunities.
German CDMO Axplora has announced a €6.5 million (approximately US$
7.5 million) investment to expand its API manufacturing capacity at its
Vizag site in India. This expansion aims to strengthen both production
capabilities and supply chain resilience.
India-based Aarti Pharmalabs has
inaugurated the first phase of its greenfield manufacturing facility in Gujarat (India).
This expansion aims to bolster Aarti's CDMO and contract manufacturing
organization (CMO) services, targeting a revenue goal of INR 10 billion
(approximately US$ 112 million).
Snapdragon Chemistry, which was acquired by Cambrex in 2023, has expanded its Massachusetts
facility to better support peptide drug development and manufacturing. With
this upgrade, the company can now
handle peptide projects from early development through full-scale
manufacturing.
Italy-headquartered ICE Pharma has expanded its
Raichem facility in India. The new facility will enhance the
production of ursodeoxycholic acid (UDCA), an API it derives from chicken bile. This expansion increases the site’s raw UDCA output by 120 metric tons annually.
Spain-headquartered AGC Pharma Chemicals inaugurated a new
advanced manufacturing plant in Barcelona, with
an investment of €110 million (approximately US$
128.3 million). The plant spans 7,500 square meters and integrates cutting-edge technologies to support the entire drug development lifecycle — from R&D to commercial manufacturing. This represents a 30 percent increase in the company’s production capacity and introduces a segment dedicated to HPAPIs.
Germany-headquartered Aenova has launched a new
hot melt extrusion platform at its Regensburg (Germany) site. This new equipment enables the
production of advanced drug formulations, while handling all testing and quality checks in-house. The move strengthens Aenova’s capabilities in developing and manufacturing complex medications.
US-based Cytovance Biologics has introduced in-house formulation
development services, enhancing its role as a comprehensive partner for biologic drug developers. These services utilize quality-by-design principles to ensure speed, safety, and precision in current and future client programs.
View CDMO Activity Tracker for Q3 2025 (Free Excel Available)
Ofichem acquires Avivia BV; Evonik, Samsung Biologics form strategic
collaborations
Europe-based CDMO Ofichem Group announced
the acquisition of Avivia BV, a formulation
development company in the Netherlands. This acquisition is part of Ofichem’s strategy to become a fully integrated provider of development solutions across both drug substance and drug product, with a focus on complex formulations. Ofichem has also acquired Meribel Pharma Solutions’ site in Uppsala (Sweden) to strengthen its support for biotech innovators and expand its presence in the Nordic region.
Simtra BioPharma Solutions has acquired a 65-acre property near its
Bloomington, Indiana (US) facility, adding over 300,000 square feet of potential
expansion space. With this site, Simtra now has the flexibility to rapidly
expand in the US.
German specialty chemicals company Evonik is partnering with German biotech Ethris to
develop and commercialize a next-generation lipid nanoparticle (LNP) platform for delivering nucleic acid therapies. Evonik will assist in formulation using Ethris’ SNaP LNP technology. The LNP market alone is projected to grow to US$2.3 billion by 2032.
Luxembourg-headquartered Fareva has partnered with
Zhaoke Ophthalmology to expand its footprint in China’s pharma market. Zhaoke will act as Fareva’s go-to partner for customers seeking
pharmaceutical manufacturing in China.
Samsung Biologics has signed a 1.8 trillion won (US$ 1.3
billion) manufacturing agreement with an undisclosed
US-based drugmaker. And UK-based eXmoor Pharma has partnered with Anthony Nolan
to provide end-to-end services for cell therapy developers.
View CDMO Activity Tracker for Q3 2025 (Free Excel Available)
Our view
The
global CDMO market, valued at around US$ 255 billion in 2025, is projected
to grow to over US$ 465 billion by 2032. Significantly, about 60 percent of new
drug approvals in the US and over 65 percent in Europe now involve CDMO support. The developments outlined above underscore the increasing role CDMOs are playing today in bringing about growth and innovation in the pharmaceutical industry.
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