5 signs shaping the future of contract services
10.04.26 ArticlesDCAT Week never fails to surface what’s really going on in the industry. Below, Andrew Mears discusses five key themes that will shape the future of contract services for the biopharma space.
1. Reshaping investment – the groundwork in being laid
Investment conditions are improving, if cautiously. With $190 billion in disclosed deal value reported by Bain, and 41% of PE fund managers positioning dry powder for deployment (BDO, 2025), the impact for contract services in 2026 is a more active pipeline of carveouts, platform builds, and buy-and-build strategies.
Those who can demonstrate repeatable execution, scalable platforms, and credible post-deal integration will be prioritised, with talent playing a defining role. Geopolitical complexity means consistent deal activity is likely to emerge in the latter half of 2026 and early 2027, but the groundwork is being laid now.
2. Supply chain resilience is changing buying behaviour
When it comes to choosing a provider, the question has shifted from “do you have the capability?” to “can you guarantee continuity when the world gets messy?” Geographic diversification, dual sourcing, and near-sourcing, particularly in biologics and sterile formats, are now core considerations, with resilience planning moving earlier into the value chain.
Long-term delivery assurance is overtaking cost as the primary decision driver, pushing CDMOs to invest in capacity, quality systems, and network redundancy. The winners will be those who can prove reliability without sacrificing competitiveness, though with onshoring and capacity builds accelerating, sourcing the human capital to support it all remains the defining challenge of 2026.
3. Selection criteria are changing
With 70% of pharma companies anticipating moderate to significant capacity constraints (Simon-Kucher, 2025), demand is clear. But how sponsors choose their partners has evolved.
Selection now blends technical capability with operational fit, trading off between speed, flexibility, communication, and reliability. It’s no longer a cost decision; it’s a risk decision.
Sponsors want partners who reduce handoffs, shorten timelines, and scale predictably. The growing checklist: ESG, AI readiness, cybersecurity, adds further complexity. As does a key nuance: the right CDMO for an early-stage asset isn’t necessarily the right one for commercial launch. Those who know their strengths and execute with precision will build the trust that wins.
4. Rise of integrated partnerships
End-to-end and single-partner propositions are gaining real traction, as pharma companies look to reduce risk and improve efficiency across the product lifecycle. But integration doesn’t always mean one provider doing everything, it can mean a network working seamlessly together. For CDMOs, this demands clarity on boundaries: what they control, what is partner-led, and how quality and governance are managed across those handoffs.
API suppliers are expanding into adjacent services like regulatory support and formulation, and for contract services broadly, there is a significant opportunity to be the connective tissue of the product lifecycle through strong tech transfer, QA,QC, and supply chain analytics.
5. Talent market is evolving, and so are hiring strategies
Investors and CDMOs are prioritising real operators. Those who have delivered results, not just articulated strategy. Business Development hiring is picking up as the market improves and expectations evolve. But top talent isn’t suddenly available because the market has been tough. In fact, we’ve seen that high performers stay put to maximise their roles and are now more selective than ever.
Operational demand across CMC, quality, and supply chain continues to grow with expanding capacity, and AI is evolving roles rather than eliminating them. The next 18 months will bring continued restructuring and a sharper focus on aligning talent to strategy – adding capability in some areas, removing it in others. Those hiring reactively and perhaps hiring too quickly, will likely pay more than if they had taken the time to get it right up front.
Final Thoughts
DCAT 2026 leaves us with a clearer sense of where the market is heading, and what it will take to lead in it. Capital is returning, but selectively. Supply chains are being built around resilience, not just efficiency. Partner selection has become a strategic risk decision. Integration is the new competitive advantage. And talent, as ever, remains the thread that runs through it all.