Back to Resources

8 Critical Questions for CDMO Selection: Avoiding Common Outsourcing Pitfalls

8 Critical Questions for CDMO Selection: Avoiding Common Outsourcing Pitfalls

Selecting the right contract development and manufacturing organization (CDMO) is the difference between a product launch running on schedule and a costly nine-month delay. Tech transfer timelines often extend beyond initial projections. A process scheduled for four months can stretch to nine, with validation challenges and timeline adjustments becoming necessary along the way.

Pharmaceutical companies evaluating CDMO partnerships need to ask the right questions to reveal whether a manufacturing partner has demonstrated capability backed by a verifiable track record.

What should you ask a CDMO before signing a contract? Here are eight questions focusing on measurable factors that impact timeline, quality, and commercial success.

1. Single-Site vs. Multi-Site Manufacturing

“Can you handle our commercial volume?”

“Absolutely,” your prospective CDMO confirms.

But six months into production, they begin conversations about splitting manufacturing across multiple facilities. Quality protocols now require dual validation processes. Supply chain coordination becomes more complex.

This creates new challenges: Quality protocols now require dual validation processes. Supply chain coordination becomes more complex with inter-site logistics management. Why does single-site manufacturing matter? Multi-site manufacturing introduces operational complexity that extends project timelines and creates ongoing supply chain dependencies.

How Single-Site Operations Cut Months From Your Timeline

What are the advantages of single-site manufacturing?

Lannett’s complete 400,000 square foot operation—compounding, manufacturing, packaging, quality control, regulatory affairs, and warehousing—operates from one integrated 30-acre (12.4 hectare) campus in Seymour, Indiana. This has measurable benefits:

  • Batch release in fewer days.
  • Same-day quality consultations without scheduling delays.
  • No inter-site shipping coordination.
  • Streamlined scale-up without facility transfer requirements.

Will my product be manufactured, tested, and packaged at a single location, or will it move between sites during production?

2. Quantify Tech Transfer Success

Tech Transfer Performance Metrics That Matter

How long does pharmaceutical tech transfer actually take?

Tech Transfer can range from as little as 4months up to 24 months, depending on the complexity of the transfer.

This is why verifying your potential CDMO’s tech transfer track record—with numbers—is crucial. The difference lies in the accuracy of process characterization and the thoroughness of preliminary assessment.

Tech Transfer Timeline Reality

Why do tech transfers fail? Because process documentation can capture procedural steps but doesn’t always capture the operational knowledge that ensures reproducibility. In other words, it captures what you did, but not always why it worked.

Critical process parameters (CPPs) often reside in undocumented operational expertise, such as specific visual cues, environmental factors, and subtle equipment behaviors that experienced operators recognize and adjust for.

There are three elements we’ve discovered that lead to successful tech transfer:

  1. Paper-based gap analysis before physical transfer – Lannett’s technical teams review documentation with your scientists to identify potential equipment or environmental differences upfront
  2. Non-GMP pilot runs – We validate process reproducibility before committing to expensive Good Manufacturing Practice (GMP) batches
  3. Cross-functional coordination – Our tech transfer, analytical, and validation teams work together, rather than sequential handoffs that extend timelines.

– Will you conduct pilot runs before GMP manufacturing?
– What’s your first-pass success rate for tech transfer?

3. Regulatory Excellence vs. Basic Compliance

FDA Regulatory Track Record: What to Request

What’s the difference between regulatory compliance and regulatory expertise?

Every legitimate CDMO maintains compliance. Fewer demonstrate expertise.

Compliance means meeting minimum FDA requirements.

Expertise means anticipating agency questions, structuring submissions strategically, and maintaining working relationships that facilitate efficient approval pathways.

How do you verify a CDMO’s regulatory track record? Here’s what to ask for:

  • FDA Form 483 observation history and resolution records
  • Warning letters (should be zero)
  • DEA fines
  • Average inspection-to-resolution timelines
  • Average approval timelines for recent submissions
  • Regulatory staff credentials and tenure

All legitimate CDMOs maintain FDA compliance through current Good Manufacturing Practices (cGMP) adherence and regular inspections.

– What’s Your FDA Inspection History?
– Show me your last three FDA inspection reports. What observations did you receive, and what was your remediation timeline?

4. High-Potency Manufacturing Capabilities: Essential Requirements

Specialized Manufacturing: High-Potency and Controlled Substance Capabilities

Can all CDMOs manufacture high-potency compounds? The short answer is no.

Most CDMOs lack the specialized infrastructure that high-potency manufacturing requires, including dedicated containment suites, specialized HVAC systems with validated monitoring, and trained personnel, which is all infrastructure that cannot be easily retrofitted or improvised.

Lannett CDMO has specialized capabilities to handle diverse compound classes across the complete OEL spectrum:

  • Handle compounds with OELs from >500 μg/m³ down to 0.1 μg/m³ (Category 1-3B)
  • Dedicated suites for potent drug manufacturing
  • DEA-controlled substance certification (re-certified regularly)
  • 75 years experience with complex handling requirements

What can you do to find out your potential CDMO’s high-potency and complex compound manufacturing capabilities?

– Can you handle high-potency or controlled substances?
– What’s the lowest OEL you’ve successfully manufactured? Can I tour your containment facilities?

5. Technical Capabilities Beyond Basic GMP

Verify Manufacturing Expertise Beyond Basic GMP

Why do CDMOs accept projects they later struggle to execute? Business development teams are often evaluated on contracts signed, while technical teams become involved too late to provide realistic capability assessment.

This sequencing creates risk when commercial teams commit to timelines without validation from manufacturing, analytical, or formulation specialists who understand equipment limitations and process complexity.

Beyond basic GMP compliance, pharmaceutical development requires specific technical capabilities that you should verify upfront, such as:

Advanced formulation techniques:
  • Modified-release technologies (delayed, extended, controlled).
  • Specialized coating capabilities (Wurster coating, laser-drilling for osmotic systems).
  • Complex delivery systems (multi-layer tablets, osmotic systems).
  • Temperature-sensitive compound handling with validated cold-chain protocols.
Analytical capabilities:
  • Method development and validation in-house
  • Full ICH stability testing
  • Specialized testing (ICP-MS for elemental impurities, particle size analysis, extractables/leachables studies)

Lannett’s technical manufacturing capabilities include:

  • Immediate, extended, and delayed-release formulations
  • Laser-drilled osmotic release tablets
  • Wurster coating technology for modified release and taste masking
  • Full analytical laboratory services on-site

It is crucial to evaluate whether your CDMO understands the importance of early technical team involvement and comprehensive project management.

– Who on your technical team will review our process before we proceed with contracting? Can I speak with them during evaluation?

6. Current Utilization Rates and Scale-Up Capability

Current capacity utilization indicates immediate availability, but long-term partnership viability requires understanding expansion capability and capital investment plans.

CDMOs operating above 85-90% utilization typically cannot accommodate volume increases without capital expenditure or production line additions, which often require 12-18 months, at minimum.

Understanding current capacity utilization and growth accommodation capabilities provides insight into a partner’s ability to support your volume increases without compromising schedule commitments.

How do you know if a CDMO can scale to meet your production requirements?

Warning signs that suggest capacity availability constraints:

  • Vague answers about capacity (“We’ll make it work” without specific metrics).
  • Utilization above 85-90% without documented expansion plans or additional line capacity.
  • Single production line for your product category, creating bottleneck risk.
  • No structured long-term forecasting process that coordinates capacity planning with customer growth projections.

Lannett CDMO maintains an annual production capacity of 3.5 billion oral solid dosage doses and 2.0 million liters of liquid formulations, and we can scale production by 10x or more on current equipment and facility capacity.

Our demonstrated record of schedule attainment reflects effective capacity management that balances multiple customer requirements without over-commitment.

If you plan to scale commercially, it’s critical that you know your CDMO company’s current utilization and growth capacity.

– What percentage of your total manufacturing capacity is currently utilized?
– How far in advance are production slots typically scheduled?

7. Geographic Risk Assessment

Economics: Domestic vs. Offshore Manufacturing

Should you choose a US-based CDMO? The economic calculations that influence manufacturing location decisions have shifted significantly in the current regulatory and trade environment.

Pharmaceutical manufacturing cost structures have shifted significantly in the past 24 months.

Historical cost advantages for offshore manufacturing (typically 25-35% lower production costs) now require recalculation when factoring in tariff exposure, extended supply chains, and regulatory coordination complexity.

What’s the real cost of offshore manufacturing now?

  • Tariffs: 25% on many imported active pharmaceutical ingredients (APIs) and finished goods.
  • Shipping delays: International shipping timelines extend to 3-4 months for ocean freight (vs. days for domestic distribution).
  • Currency fluctuations: 8-12% margin variability in volatile foreign exchange markets.
  • Regulatory coordination: 48-hour or longer response times when FDA questions arise across 12-hour time zone differences.
  • Supply chain risk: Single-source vulnerabilities exposed by geopolitical instability that can disrupt production without alternative sourcing options.
Why Trade Tariffs Are Changing CDMO Selection Criteria

What advantages do US-based CDMOs offer? These include:

  • Regulatory efficiency: Same-day FDA communication vs. multi-day international coordination delays.
  • Distribution speed: 2-3 day domestic shipping vs. months-long international logistics.
  • Risk mitigation: No currency exposure, reduced geopolitical supply disruption potential.
  • Communication clarity: No language barriers, interpretation requirements or time zone scheduling complexity.
  • Quality control: Direct facility access and oversight without international travel coordination.

Lannett CDMO’s single site in Seymour, Indiana operates without offshore supply chain dependencies, where we:

  • Maintain established domestic supplier relationships that enable faster material sourcing and qualification.
  • Provide direct FDA access for streamlined approval processes and rapid response to agency questions.
  • Enable simplified distribution logistics to North American markets without customs clearance delays or international shipping coordination.

Given the total cost calculation variables between domestic vs international manufacturing and the increasingly strategic benefits of U.S.-based CDMO partnerships, you need to account for factors that affect your CDMO’s overall value proposition.

– How are trade tariffs affecting your costs?
– What percentage of your supply chain is exposed to international tariffs or geopolitical disruption risk (from raw materials through finished product)?

8. Digital Systems and Data Integrity Infrastructure

Why does data integrity matter for pharmaceutical manufacturing?

Paper-based systems and manual data entry introduce three categories of risk that affect both regulatory compliance and operational performance:

  1. Regulatory risk: FDA increasingly scrutinizes data integrity in inspections.
  2. Operational inefficiency: Longer cycle times, lower yields from missing data points.
  3. Delayed approvals: Weak audit trails jeopardize tech transfer and BLA submissions.

What should a modern CDMO’s data systems include?

  • Electronic batch records with time-stamped entries that create comprehensive audit trails.
  • Laboratory Information Management Systems (LIMS) integration providing real-time quality data access.
  • Validated computerized systems (21 CFR Part 11 compliance for electronic records and signatures).
  • Secure audit trails meeting ALCOA+ principles (Attributable, Legible, Contemporaneous, Original, Accurate, plus Complete, Consistent, Enduring, and Available).
  • Real-time process monitoring and analytics enabling immediate deviation detection and trend analysis.

Throughout our 75-year history, Lannett CDMO has continuously invested in digital infrastructure, manufacturing and quality systems.

From validated GxP systems across all manufacturing and quality operations, to electronic logbooks and comprehensive LIMS including Chromeleon for chromatography data and Master Control for quality management, we utilize automation for batch record accuracy, eliminating transcription errors inherent in paper systems.

We also maintain real-time quality monitoring that enables immediate response to process variations.

– Are your batch records electronic or paper-based?
– Can you demonstrate your audit trail system and data integrity controls?

The CDMO Selection Checklist: Essential Verification Points

The difference between a successful partnership and a costly mistake often comes down to asking the right questions early.

Before signing with any CDMO, verify these capabilities through documentation, facility tours, and technical team consultations:

Manufacturing Excellence:
  • 96% average yield rate
  • 95% schedule attainment
  • 98% on-time delivery
  • 17 approved product applications since 2019

Quality Without Compromise:
  • Zero warning letters in company history
  • Zero DEA warnings or regulatory fines
  • Proactive regulatory response and remediation

Single-Site Speed:
  • Complete 400,000 sq ft campus in Seymour, Indiana
  • All operations under one roof
  • No multi-site coordination delays

U.S.-Based Advantage:
  • Streamlined FDA communication
  • No tariff exposure on domestic supply chain
  • 2-3 day distribution to North American markets
  • Direct regulatory oversight access

Currently Evaluating CDMOs?
Add Lannett to Your Comparison.


Smart evaluation starts with the right questions. Smart partnerships start with straight answers.

You’ve read the eight questions. Now get eight straight answers.

From Checklist to Partnership: The Lannett Difference

  • Email: cdmo@lannett.com
  • Phone: +1 908-910-0184
  • Schedule an Introductory Call

More Resources

Image

Considering a
tech transfer?

We believe there are five keys critical to the success of a transfer. Key in your email to receive our ebook.