State of pricing: Why value communication is now critical for CDMOs

Today, CDMOs face sharper price pressure and tougher negotiations. Our latest study shows that value communication, rather than blanket price hikes, is now the key to defending margins and sustaining growth.

Pricing has become both a defining challenge and an opportunity for Contract Development and Manufacturing Organizations (CDMOs) in 2025.

The latest CDMO results from the Simon-Kucher Global Pricing Study (GPS) show a clear shift in mindset: after a year of modest pricing adjustments amid slower project demand, most CDMOs now plan more aggressive price increases in line with the expected demand recovery. Yet, realizing those increases is far from straightforward.

Most CDMOs continue to struggle with price realization, driven by suboptimal value communication and rising customer pushback. As price pressure intensifies, the industry is pivoting - away from…