The evolving OSD market: Complexity, capability and collaboration

The global oral solid dosage (OSD) market remains a large, mature sector, but its growth trajectory is entering a new, more complex phase. Rather than being driven solely by volume, the market is increasingly shifting towards higher-value, more challenging products.

Although this shift is enabling new, life-changing therapeutics to reach patients, it is also requiring contract development and manufacturing organisations (CDMOs) to rethink their operational frameworks.

Rising complexity in modern OSD development

As pipelines evolve and OSD products become more complex to produce, developers and manufacturers are under pressure to leverage advanced formulation technologies and specialised manufacturing capabilities to support more sophisticated oral delivery strategies.

In this environment, success is defined by the ability to manage complexity with consistency and control.

As a result, there is a greater emphasis on utilising:

Technical expertise to handle more advanced formulations
Speed and reliability in development and supply
Integrated capabilities that connect development with commercial manufacturing.

Technical capability as a driver of CDMO selection

Growth in the OSD contract manufacturing market is now being shaped as much by complexity as by demand. For CDMOs, this means differentiation is shifting beyond price, with technical capability and delivery performance becoming key considerations.

While capacity remains important, sponsors are increasingly moving beyond transactional manufacturing models towards more strategic, integrated partnerships, reflecting the growing need for CDMOs that can support the full product lifecycle.

Overcoming barriers to innovation

Despite ongoing innovation, several barriers continue to impact OSD development. Regulatory uncertainty, organisational risk aversion, scale-up and technology transfer challenges, as well as supply chain and excipient constraints, can all limit the pace of progress.

Addressing these challenges requires CDMOs to remain flexible and responsive, adapting their capabilities to meet evolving customer needs while supporting the adoption of new technologies. Learn more about the evolving OSD manufacturing landscape in the full article in Contract Pharma.