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Press Clipping / Jul 19, 2023

Net-Zero Pledge: CDMOs Go Greener

Contract Pharma, 19 July 2023

In the year 2021, when COP26 was held in Glasgow, Sterling Pharma Solutions came out announcing an ambitious target: to reduce the CDMO’s overall emissions by 50% by 2025 and by doing so, joining the international community’s fight against climate change.

The CDMO Recipharm expanded its pressurized metered dose inhalers (pMDI) product development the following year to accommodate the switch to new propellants, which have 90% to 99.9% lower global warming potential than HFA134a.

In the same year, WuXi STA won top scores from EcoVadis, a provider of business sustainability ratings, for their API and formulations factories located in China.

Again, in January, Samsung Biologics was awarded the 2022 Sustainable Markets Initiative’s Terra Carta Seal in recognition of its commitment to achieving net zero greenhouse gas emissions across its direct operations and supply chain by 2050 or earlier.

Similarly, Cytiva says its goal is to eliminate polystyrene from the company’s packaging materials and supply chain by 2025.

These are just a few examples of a growing trend.

A number of CDMOs are accelerating their environmental drive setting themselves far more ambitious targets than these as sustainability goals are now becoming one of the most urgent business strategies facing pharma companies.

Presently, analysts say that there is a move away from sustainability being seen as something that is nice to have, to something more fundamentally important to businesses.

"Sustainability commitments are no longer just desirable," says Jon Peers, director of sustainability at Hovione. "They are becoming mandatory, both directly by our regulatory authorities and indirectly by the regulatory and financial requirements faced by our customers."

Hovione, a leader in spray drying and particle engineering, became a Certified B Corp in 2017 integrating an innovative community of companies that use the power of business to solve social and environmental problems.

Pharma’s outsized impact

Medicine making leaves an environmental impact which is quite massive. Estimates show that the pharmaceutical sector is accountable for as much as 4.4% of worldwide emissions—and if no action is taken—its carbon dioxide, a greenhouse gas (GHG), emissions are predicted to triple by 2050.

Not only manufacturing but the distributing and transporting of medicines from the factory to the patient also carries a substantial environmental footprint.

According to the Sustainable Markets Initiative’s (SMI) “Decarbonizing Healthcare Supply Chains” whitepaper, the biopharma industry is responsible for 4–5% of global GHG emissions, with most of its carbon footprint coming from supply chain, manufacturing, retail, and logistics.

Having felt the heat, many leading pharma companies are already ahead of the curve on the path to net-zero carbon emissions. They have made carbon neutrality and net-zero pledges, some for as early as the next decade.

Sustainability metrics: High on the agenda

CDMOs demonstrate a strong determination to reduce their carbon emissions as environmental performance is being added to the list of demands by their clientele.

Industry reports show that full waste recycling, green power percentage and green chemistries currently play a crucial role during negotiations between pharmaceutical companies and the CDMOs.

These “sustainability metrics” are becoming increasingly important even as technology, track record, capacity, and cost are still the most important criteria for selecting CMOs/CDMOs.

"Recognizing our commitment and progress made towards our sustainability targets, clients will seek out not only providers of CDMO services but also those companies with the competence to execute these services in harmony with the client’s respective sustainability goals," says Paul Zuechner, director, sustainability and reliability engineering, pharma services, Thermo Fisher Scientific.

Thermo Fisher, which offers end-to-end solutions to small molecules as well as biologics, announced an acceleration of the target to reduce scope 1 and 2 GHG emissions to more than 50% by 2030.

Zuechner maintains that the increasing focus on sustainability, resource and decarbonization quantifications is now elevating sustainability towards an equal project deliverable on par with cost, quality, and timelines.

The sustainability initiatives by CDMOs are not only driven by customer preference but also by regulatory requirements, according to Peers of Hovione. Regulated and standardized reporting is there. The European Corporate Sustainability Reporting Directive (CSRD) together with the European Sustainability Reporting Standards (ESRS) is significantly raising the required levels of compliance.

On top of this, businesses must meet their stakeholder’s requirements to provide material information that stands up to scrutiny.

Headquartered in Loures-Portugal, Hovione believes that it is simply not possible to meet the challenging goals that have been set by the companies themselves on sustainability without further innovation, particularly through process intensification and the greening of pharmaceutical intermediate and API manufacturing.

Safety via process efficiency

Without question, manufacturers are aggressively pursuing various strategies to enhance processes as it becomes a business imperative for the service providers.

"Olon tries to optimize plants' performances, in order to reduce the amount of energy, materials and natural resources they need,'' says Giorgio Bertolini, senior vice president of R&D, Olon Group, a global leader in the development and production of APIs, headquartered in Milan, Italy.

Olon is working on cutting-edge R&D processes applied both to chemistry, in terms of flow chemistry, photochemistry, and electrochemistry, and to biotechnologies. Investing in and developing technological advances allows the organization to combine well-established practices with new ones, to guarantee efficient and successful manufacturing processes, at the same time ensuring safe, fast and cost-effective commercial processes.

"We consider climate protection and the related reduction of GHG emissions to be a top priority," emphasizes Bertolini. To increase efficiency and reduce the energy required for production, especially in the functioning of reactors, Olon is implementing several continuous manufacturing processes, investigating both the flow chemistry approach and the continuous stirred tank reactors (CSTR)

These approaches entail leaving no batch reactors with loading and unloading phases but keeping constantly active production units—either microreactors or small classical reactors. The outcome is that, at the same levels of production, continuous manufacturing processes can reduce the footprint of the manufacturing process in comparison with standard methods.

This innovative production technique, he explains, enables a double positive impact in terms of sustainability. Indeed, it allows for the use of smaller amounts of material for the unit time, therefore resulting in increased local temperature control and in the possibility to avoid extreme temperatures, making the manufacturing process less energy intensive. It also provides greater safety for operators.

The industry is now facing a change of paradigm, avers Bertolini, in which there is a continuous exchange of knowledge and information between the chemical and engineering sectors, which eventually results in the creation of new specific know-how and business synergies.

Olon started constructing a new facility at its Rodano site (Milan, Italy) dedicated to ultra-potent compounds, used for antibody-drug conjugates (ADCs).

Circular business models that combine a responsible use of natural resources and raw materials with a responsible waste management approach are what Olon strives to promote, according to Bertolini.

Greening the supply chain

To reduce effluents and design safer alternatives to hazardous processes organizations extensively explore the use of safer and more sustainable chemicals.

This green chemistry approach can minimize the risk of impact on the environment to a great extent.

Olon, for instance, is focusing on green chemistry projects for the replacement of chlorinated solvents and the reduction of critical substances which could be particularly toxic, especially in new manufacturing processes.

Not only in manufacturing, quite a few companies are investing in greener biofuels (rather than diesel) for vehicles. As mentioned, distributing and transporting medicines from the factory to the patient also leaves a large carbon footprint. Temperature-sensitive products are loaded onto refrigerated vehicles to maintain cold-chain which require a considerable amount of energy to power.

Environmental credentials are now integral to all supply chain decisions. There is almost a universal consensus on this approach, shows the CPHI sustainability sentiment index.

In data released ahead of CPHI Frankfurt 2022, 95% of industry executives suggest it is either “important” or “extremely important” (52%) to have visibility on supply chain partners.

Scope 3 emissions: Key challenge

In comparison to the scope 3 tally that falls not within the organization's boundary, scopes 1 and 2 emissions are relatively minor. However, within these scopes, electrical energy consumption in manufacturing and the fugitive emissions from hydrofluorocarbons (HFC) released during pMDIs product lab testing are the highest.

pMDIs and anesthetic gases can be particularly serious for global warming. The UK and several countries in the EU block including Belgium, and the Netherlands are now promoting dry powder inhalers in prescription guidelines. Meanwhile, the common general anesthetic desflurane is being replaced by lower-carbon alternatives in countries like Sweden.

Scope 3 emissions, however, make up the majority of the pharma sector’s carbon footprint. Even though many CDMOs have set ambitious targets like striving for carbon neutrality across the entire value chain already by 2030, many are still simply focusing on scope 1 and 2 emissions.

Observers say that this is largely because the need for sustainability in the pharmaceutical industry has become more apparent only in recent years.

Another concern is the cost factor.

According to Peers of Hovione, decarbonization costs in particular can be very expensive and require strategic planning and commitment from senior management to meet associated capital and operational costs.

The sustainability challenge, he says, needs to be considered throughout the drug development life cycle, starting from simple assessments against sustainability principles and metrics early on and growing in detail and robustness as the drug progresses through the cycle.

Shift in focus

Experts, however, see a shift across the industry. Discussions about sustainability are taking place at the highest levels. An increasing number of pharmaceutical companies are prioritizing it when discussing projects with their CDMO partners.

"Be it the fulfillment of new technical capabilities, increased production capacities, advancing regulatory compliance and now sustainability target introductions—it’s natural for us to solve for and achieve our customers’ product development, manufacturing, and corporate goals in partnership,” says Zuechner of Waltham, Massachusetts-headquartered Thermo Fisher.

It will be essential for drug makers and their CDMO partners to work together on questions of sustainability, and to be ready with a sustainability agenda before starting to work on the project, in the coming years.

It is important for CDMOs, says Peers, that their clients and suppliers share the same vision of a more sustainable industry as collaboration across the value chain is key to leveraging knowledge and driving change.

 

Read the article at contractpharma.com

 

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Hovione is an international CDMO with over 60 years of experience in pharmaceutical development and manufacturing, providing a comprehensive range of services for New Molecular Entities (NMEs) including drug substances, intermediates, and finished drug products. Hovione also provides niche generic API products and delivers advanced technologies to support a variety of drug delivery systems, including oral, injectable, inhalation, and topical formats. Today, the company employs 2,500 people worldwide and offers 900 m3 of manufacturing capacity. Jean-Luc Herbeaux joined Hovione as Chief Operations Officer in 2020 and was appointed CEO in April 2022. Previously, he held multiple high-level leadership positions at Evonik, where he last headed the Health Care Business Line. Herbeaux earned a Diplôme d’Ingénieur from UTC in France and an M.S. and Ph.D. in Mechanical Engineering from the University of Houston in the U.S. In this Q&A with Contract Pharma, Herbeaux discusses Hovione’s leadership in spray drying and continuous tableting technologies, the fundamental purpose that drives the company, long-term growth strategies and more.   Contract Pharma: What are the most significant trends you are currently observing in the CDMO industry? Jean-Luc Herbeaux: Several powerful trends are currently reshaping the CDMO industry. First, we are seeing a rapid increase in the complexity of synthetic molecules. These compounds often require longer, more sophisticated chemical routes and access to specialized, qualified capacity. They also drive demand for advanced formulation technologies, particularly in particle engineering and bioavailability enhancement, where spray drying has become a key enabling platform. Second, development timelines continue to compress. Sponsors want to move faster, which significantly increases the pressure on manufacturing organizations. CDMOs are expected to design, build, qualify, and scale assets in much shorter timeframes. This challenge is amplified by the simultaneous launch of very large-volume products, where commercial capacity may not yet exist and must be created in parallel with late-stage development. These dynamics clearly favor CDMOs that already have available capacity, strong engineering depth, and proven capabilities in rapid, right-first-time scale-up. Third, the regionalization of supply chains is becoming a structural reality. Concepts such as “USA for USA” or “China for China” represent a fundamental shift for an industry that was historically optimized around globally integrated networks. CDMOs with a truly international manufacturing footprint and strong scalability are best positioned to support this transition and to meet the expectations of global pharmaceutical customers. Finally, all these forces are accelerating the evolution of customer relationships — from transactional outsourcing toward strategic, long-term partnerships. As regulatory standards tighten and customer audits become broader and more rigorous, CDMOs aspiring to be strategic partners must go well beyond technical excellence. They must demonstrate highly professionalized operations, robust quality systems, strong governance, and the ability to integrate seamlessly into their customers’ development and supply strategies. CP: How does Hovione maintain its leadership in spray drying and continuous tableting technologies? Herbeaux: Establishing and maintaining leadership demands focus, discipline and commitment to continuous improvement. Decathletes are versatile but rarely dominate a single event. Similarly, I believe pharma CDMOs must decide whether to focus on selected technologies to achieve excellence or maintain a broad offering with inevitable compromises in depth and focus. At Hovione, we have chosen to specialize, dedicating over 20 years to perfecting spray drying. Thanks to this dedication, we have built unmatched know-how in particle engineering, scale-up, and industrialization, by optimizing materials, formulation, process design, automation, hardware design, and nurturing internal talents and partnerships. Specialized CDMOs like Hovione are uniquely positioned to lead this journey, given their exposure to a far broader range of compounds than any individual pharmaceutical company encounters within its own development pipeline. Our journey in continuous tableting is more recent, yet it follows the same playbook: we apply the same disciplined, end-to-end rigor across processes, hardware, automation, talent, and partner networks to drive usability and adoption. We do so by weaving innovation and continuous improvement into everything we do, with all our team members and partners contributing. This specialized approach has made Hovione very relevant to the pharmaceutical market, not by virtue of size or volume, but through the differentiation achieved in these areas of heightened focus. In turn, this contributes to the creation and reliable supply of superior therapies to the most important stakeholder group – patients. CP: How is Hovione integrating new technologies and innovations in its processes? Herbeaux: At Hovione, we believe in advancing the quality of our services through science and technology.  Our scientific expertise helps bring performance and predictability to the development and manufacturing processes we employ to deliver drug products and their intermediates to our customers, ensuring consistently high-quality results at all scales. Our approach to innovation integrates co-development with our partners and customers to adopt innovations that accelerate development and constantly improve product and process performance. Digital tools and automation—like PAT, advanced analytics, and in silico modeling—are obviously integrated in our processes to improve control, speed, and outcomes. By focusing on innovations that have a real impact, Hovione supports up to 10% of the NDAs submitted to the FDA on any given year and contributes to medicines that reach about 80 million patients. This reflects our dedication to improving patients’ lives. At the core of our identity is this fundamental purpose that guides everything our 2,500 team members do: “We are in it for life.” CP: What is Hovione’s long-term strategy to grow its U.S. operations? What progress has the company made recently? Herbeaux: The significant growth of our New Jersey site in recent years reflects the combined effect of a deliberate strategic decision to reinforce local capabilities and teams —bringing us closer to our customers and their end markets. Our “one-site-stop” approach—bringing together drug substance, drug product intermediate, and drug product capabilities at a single site under one quality system—resonates strongly with customers. This model reduces technology-transfer complexity, compresses timelines, and enables seamless execution from development through commercialization, directly addressing customer demand for accelerated timelines. We recently completed a $100 million investment cycle, including the construction of a 31,000 sq. ft. facility featuring two new commercial-scale size-3 spray dryers dedicated to amorphous solid dispersions (ASDs). This investment more than doubles our U.S. spray-drying capacity. The facility will also soon be equipped with a next-generation GEA continuous tableting line (CDC Flex) designed to accommodate a broad range of output levels, from development through commercial-scale volumes. Hovione has also acquired additional land to support a future 125,000 sq. ft. greenfield development. Together, these projects have the potential, over the next decade, to transform our New Jersey site into a fully integrated pharmaceutical manufacturing campus of more than 200,000 sq. ft. CP: What is Hovione’s growth strategy for the rest of the world beyond the U.S.? Herbeaux: The New Jersey expansion is part of Hovione’s multi-year, multi-continent investment plan to create a network of autonomous yet harmonized sites. In Seixal, Portugal, a €200 million investment in a 104-acre campus—including new production buildings, laboratories, and offices—is scheduled to open in 2027, providing clear line of sight for new business opportunities. In Cork, Ireland, a recently completed expansion nearly doubled our local spray-drying capacity. Together, these investments strengthen our key technology platforms— 1) amorphous solid dispersion via spray drying and 2) continuous tableting—enhancing capacity and ensuring redundancy to support global supply continuity. CP: Are there any recent collaborations or partnerships that have been impactful for Hovione’s trajectory? Herbeaux: Strategic partnerships with pharmaceutical companies (our customers) are particularly rewarding, as they entail long-term commitments, provide preferred access to rich portfolios and pipelines, and support our continuous evolution toward best-in-class performance. In recent years, we have secured a growing number of preferred supplier relationships, which have helped ensure long-term supply of complex drugs and intermediates for our partners while also mitigating risk in our own pipeline. Another category of strategic collaborations involves partners with capabilities that are complementary to ours. Through these collaborations, we expand our innovation ecosystem, enhance our capabilities to address the industry’s toughest challenges, and leverage top industry talent to create value that benefits and respects all participants. Our partnership with Zerion Pharma helps advance the Dispersome technology to boost bioavailability of small-molecule drugs, supported by our ASD-HIPROS intelligent screening platform to speed amorphous solid dispersion formulation development. Our technology partnerships with Dragonfly Technologies (micellar chemistry) and Microinnova (flow chemistry) enable greener, leaner chemistry. Our collaboration with GEA contributes to the higher adoption of continuous tableting with next generation continuous tableting machines, which are easier to use, more compact and address the customer requirement for accelerated development. Building on our leadership in spray drying, we are partnering in systems for respiratory drug delivery, such as dry powder inhaler device technology with H&T Presspart and nasal powder delivery devices with IDC in order to present a complete offering (API, powder, and devices) to the market. Last but not least, we are expanding our network to areas adjacent to our current commercial activities, most notably aseptic particles and formulations, with the goal of addressing drug delivery and stabilization challenges for new modalities. Our specialized synthetic sugars, which show potential in this area, came with the acquisition of ExtremoChem. We will share more details as this offering continues to mature. CP: From a sponsor’s perspective, what should companies look for when choosing a CDMO for early-phase development of complex formulations? Herbeaux: When faced with the difficult task of selecting a CDMO, I would recommend choosing a partner with proven capabilities in the relevant area—particularly when it comes to scaling from early development to commercial production. I would select a CDMO that helps the customer make the right scientific and technical decisions early, anticipating scale-up challenges before they arise. Ultimately, I would choose a partner for the long term, equipped with the right team (including management), equipment, methodologies, quality and regulatory expertise to de-risk both the clinical and commercial programs. A long-term partnership fosters a transparent, collaborative model, supported by strong data protection, with the CDMO functioning as an extension of the customer’s team.  As trust is established and team dynamics are proven, partners can successfully pursue projects even beyond the CDMO’s core technologies, leveraging close collaboration and higher levels of integration to ensure successful outcomes. In my experience, nothing delivers more long-term value than a network of trusted partners. CP: As the CDMO space becomes increasingly crowded, how is Hovione differentiating itself in the eyes of emerging biotech and mid-sized pharma clients? Herbeaux: Our customers’ trust is our most valuable asset. It underpins every collaboration we build and is earned through the depth of our scientific expertise, efficient and reliable manufacturing, strong quality systems, sustainable practices, and long-standing regulatory excellence. This foundation is reflected in the trust placed in us by 19 of the world’s top 20 pharmaceutical companies, as well as many mid-sized pharmaceutical companies and biotech organizations. That trust is never taken for granted. It is earned and reinforced through our continuous efforts to help our customers address their most complex challenges and advance their drug programs with dedication, confidence and timeliness. As a family-owned company with a stable and experienced management team, we provide a clear long-term vision and consistent strategic direction—qualities our customers value highly. Having grown organically with patient outcome in mind, we deeply appreciate that every project matters—both to our pharmaceutical partners and, most importantly, to the patients whose lives depend on the successful launch and delivery of these medicines. Emerging biotech and mid-sized pharma clients can rely on the superior level of engagement and service that has made Hovione successful. Through our integrated model, we support the development and manufacturing of drug substance, drug product intermediates, and finished drug products for both clinical and commercial applications—enabling smooth scale-up, consistent results, and accelerated timelines. Our R&D and operations teams work in close partnership, coordinated by best-in-class project management practices, to ensure fast, reliable transfer from laboratory scale to GMP industrial production, maintaining speed without compromising quality. Throughout every stage, quality and compliance remain at the core of our work, with unwavering adherence to the highest standards. Our leadership in platforms like ASD by spray drying and continuous tableting, together with our capability to drive projects to success at any scale, remains a key source of value for emerging biotech and mid-sized pharma, especially as advanced formulation challenges grow more complex.   Read the full article at ContractPharma.com  

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