Manufacturing – long sidelined as a relatively prosaic element of the global pharma supply chain – is back in the news. Investment in manufacturing facilities is skyrocketing as sponsors rush to meet soaring market demand, and the global industry is scrambling to align with the Trump administration’s threats and incentives to ‘make in America.’
At the same time, pharma manufacturers are having to rapidly adapt to new modalities, including biologics and cell and gene therapies. Compared to more established medicines, making these – often personalised – products requires intensive and specific training, advanced infrastructure, and far closer alignment with R&D operations.
Thankfully for Switzerland, a small country currently labouring under 39 percent export tariffs to the US, advanced pharma manufacturing is an area in which it excels.
Leveraging a rich national tradition in precision industries, many of the world’s top pharma companies and leading contract development and manufacturing organisations (CDMOs) base key sites out of Switzerland. This has led a nation of just nine million to become Europe’s third largest pharma producer and second largest pharma exporter. According to Interpharma, pharmaceutical products accounted for more than 40 percent of total Swiss exports in 2023, worth over CHF 120 billion.
Several elements have combined to create Switzerland’s manufacturing excellence, as Thomas Bohn of the Greater Geneva Bern area (GGBa) investment agency explains.
“Switzerland’s life sciences heritage creates natural synergies across the biotech, pharmaceutical, and medtech sectors. The interconnections are fascinating; I have encountered watchmakers who observe that precision timepiece manufacturing shares technological DNA with pacemaker production.”
“Similarly, biotechnology executives recognise parallels between the country’s traditional fermentation expertise in cheese-making and modern biotech processes.”
The world woke up to this during the exceptional 2020-2021 period. “Our strength in advanced manufacturing became evident during the COVID-19 pandemic, when CDMOs in Switzerland achieved unprecedented mRNA vaccine production timelines,” notes Urs Indermühle, life sciences sector lead for Western Europe at consultancy EY.
“This capability reflects Switzerland’s historical precision manufacturing expertise, evolved from traditional industries like watchmaking into medtech and biotech applications.”
However, continued success in an increasingly protectionist geopolitical climate is by no means assured, and Swiss manufacturers must adapt swiftly. As Stephan Fritschi, recently appointed CEO of storied Swiss CDMO CARBOGEN AMCIS, since 2006 part of the Indian conglomerate Dishman, notes, “In general, the global economic environment, characterised by currency fluctuations and changing regulations, demands strategic agility.”
CDMOs as Strategic Partners
In this geopolitically uncertain environment and with pharma and biotech outsourcing more of their manufacturing to partners than ever before (one global analysis shows that the percentage of manufacturing and testing activities that pharma companies outsourced grew from around 20 to 25 percent in 2010 to between 50 and 60 percent in 2023), CDMOs are having to evolve, and quickly.
This is true across Europe, where the CDMO market is set to soar from USD 45 to 58 billion by 2030, according to Mordor Intelligence, and especially in Switzerland.
Against this backdrop, new modes of collaboration have emerged. “The evolution from vendor-customer relationships to strategic partnerships represents one of the most significant transformations I have witnessed,” says Marie Leblanc, EVP of life sciences at Biosynth, a mid-sized local CDMO in supercharged inorganic growth mode, with nine acquisitions across multiple technology platforms over the past three years.
“Today’s commercial relationships are characterised by deeper integration and collaborative planning,” adds Leblanc, whose firm engages with both smaller biotechs as well as mid-sized and large pharmaceutical companies under such frameworks. “We discuss everything from governance to forecasts, innovation collaboration, and mutual learning opportunities. The relationship has evolved into a strategic partnership model.”
Hanns-Christian Mahler, CEO and founder of four-year-old CDMO ten23 health identifies a similar shift. Mahler, with experience on both sides of the sponsor-CMO relationship at Roche, Merck and Lonza, explains that “traditionally, most CMOs operated purely as executional partners – clients would provide specifications, the CMO would execute the work, submit invoices, and report problems, but rarely offer strategic solutions or scientific insight. “
“This paradoxically required pharmaceutical companies to maintain substantial in-house expertise simply to manage their external partners, undermining many of the potential benefits of outsourcing.”
Mahler continues, “Additionally, I observed how decision-making paralysis in large organisations may frequently delay critical projects. Excessive governance layers meant decisions were either deferred indefinitely or made by individuals without adequate overall technical context. There was also a noticeable lack of psychological safety – team members were often reluctant to make decisions for fear of reprisal if outcomes weren’t perfect.”
“With ten23 health, I set out to create a different kind of partner – one that combined deep technical expertise with agile decision-making and a culture that genuinely empowered employees at all levels.”
Supporting SMEs
Smaller companies account for an ever-greater share of global innovation, with 80 percent of FDA novel drug approvals now originating from small and mid-cap companies. As these smaller firms and biotechs grow in importance, CDMOs in Switzerland are adjusting their offerings accordingly.
“These organisations typically operate as research-focused entities that identify novel molecules but lack the development and commercial infrastructure necessary for market entry,” explains Marcel Imwinkelried, CEO of small molecule-focused CDMO Siegfried. “They require CDMO partners capable of providing comprehensive services from discovery through commercialisation.”
“Smaller companies require rapid progression to key milestones without depleting limited capital reserves,” adds Daniel Palmacci, head and president for specialised modalities at Lonza, a Swiss-headquartered CDMO giant which boasts more than 30 sites across five continents.
“They need partners who can provide strategic guidance on navigating regulatory requirements, optimising manufacturing processes, and preparing for commercial scale-up.”
A 29-year veteran of the company, Fritschi of CARBOGEN AMCIS is well placed to spot the longer-term trends in client composition. “The mid-2000s were dominated by large pharmaceutical companies, but their subsequent migration to Asian manufacturing created opportunities for mid-sized and smaller biotechnology companies,” he states.
“We strategically pivoted to serve these emerging companies, supporting their clinical development phases and often maintaining relationships as they mature and potentially partner with or are acquired by larger pharmaceutical companies.
Advanced Therapies & Complex Niches
In addition to serving a new cadre of up-and-coming SMEs, Swiss pharma has also evolved in terms of the types of therapies it produces. Some of the world’s most advanced, complex and personalised medicines and vaccines now emerge from Swiss facilities, with both local and multinational firms leveraging the country’s wealth of expertise and infrastructure.
“The broader reinvestment pattern we are seeing includes major multinationals focused on the production of advanced therapies – Takeda, Merck, Johnson & Johnson, and Thermo Fisher Biologics – all expanding their Swiss operations,” says the GGBa’s Bohn. “CSL Behring in Bern continues adding production lines, while Chinese investor WuXi has successfully acquired and expanded local operations.”
Some of the countries’ CDMOs have been ahead of the curve. “High-potency compound manufacturing, which we have championed since 2003, continues expanding as the industry recognises the therapeutic advantages of more targeted, efficacious molecules,” proudly exclaims Fritschi of CARBOGEN AMCIS.
“This evolution naturally led to our involvement in the development of antibody drug conjugates (ADCs), where we leverage our high-potency expertise to manufacture APIs, linkers, and conjugation chemistry.
“Beyond ADCs, we are observing significant growth in bioconjugates broadly, including polymer carriers and other sophisticated delivery systems, while oligonucleotides and specialised peptides represent additional growth vectors”, he adds.
Lonza’s Palmacci – whose remit as specialised modalities head covers traditional cell and gene therapy alongside personalised medicine, mRNA therapeutics, microbial platforms and bioscience technologies – outlines his firm’s strategic approach to advanced therapy manufacturing:
“At the heart of our approach lies an unwavering commitment to scientific excellence. We have built our business model around attracting top scientific talent – the kind of minds that typically drive innovation in smaller biotech firms. This strategic focus on fundamental science allows us to engage at every stage of the development process with genuine technical authority.
He continues, “Our track record speaks to this approach: we were among the first to commercialise induced pluripotent stem cells (iPSCs). In CRISPR-Cas9 gene editing – a Nobel Prize-winning technology – we’ve achieved commercial implementation at a scale unmatched in the industry. Our leadership extends to autologous cell therapies, where we’ve guided partners from discovery through to approved products, while also advancing allogeneic and viral vector platforms.”
Switzerland’s smaller CDMOs are also committed to cutting-edge innovation. For instance, as a new market entrant unable to compete with more established players on price, ten23 chose to dial in on complex injectables, such as those which patients self-administer via a device, and intravitreal injections administered into the back of the eye, where precision is crucial.
“We deliberately chose to specialise in injectables because we saw an opportunity to bring real differentiation in a space that demands both technical precision and innovation,” outlines Mahler. “While many CDMOs focus on oral solid dosage forms, where the market is crowded and competition tends to revolve around price or geographic proximity, we believed our strengths and ambitions aligned better with a more specialised, high-value offering.”
Another small, specialised player is NewBiologix. Formed in 2022 and led by biotech industry veteran Igor Fisch, NewBiologix produces Adeno-Associated Virus (AAV) vectors essential for cell and gene therapies. Having successfully engineered and extensively characterised a proprietary cell line optimised for the production of AAV particles, the company is now licensing this technology to CDMOs to facilitate broader industry adoption.
Fisch explains how NewBiologix aims to reduce the sky-high price tags associated with cell and gene therapies. “Today, the high cost of manufacturing AAV vectors – resulting in treatments priced at over one to two million dollars per patient – limits access to life-saving gene therapies,” he explains. “Current production methods, particularly transient transfection, are costly, inefficient, and inconsistent.
“At NewBiologix, we are developing stable, reproducible production platforms for AAV vectors. By addressing the inefficiencies inherent in current manufacturing techniques, we aim to lower production costs and enhance consistency. In doing so, we hope not only to improve access to existing therapies but also to enable the expansion of gene therapies into broader indications, encouraging greater engagement from the pharmaceutical industry.”
Embracing Sustainability
Then there is environmental sustainability. While abiding by environmental regulation can be burdensome for manufacturers, Swiss CDMOs are keen to assert the advantages of being as sustainable as possible.
“Embracing sustainability is no longer just an ethical imperative; it is now an integral part of the strategy for manufacturers to ensure long-term survival, drive innovation, and maintain a competitive edge,” proclaims Biosynth’s Leblanc. “This shift requires consideration of the environmental impact of the entire product lifecycle, from production to use and disposal, and to adopt greener manufacturing processes throughout the industry.”
Siegfried’s Imwinkelried agrees, adding that “sustainability initiatives are not contradictory to cost optimisation. We consistently develop business cases that demonstrate both environmental benefits and financial returns. Our investments in energy efficiency and waste reduction generate measurable cost savings while advancing our environmental objectives.”
Biosynth, for its part, is engaging in a variety of initiatives aimed at reducing its carbon footprint and contributing to sustainability. “We identify enzyme engineering and biocatalysis as key areas for future development, aligning with industry-wide sustainability initiatives for green chemistry solutions. A key advantage of biocatalysis is its flexibility. It can be seamlessly integrated into existing manufacturing processes to enhance their efficiency and sustainability, or it can be employed in the design of entirely new, streamlined synthesis routes for complex molecules.”
“Additionally, in both chemical and peptide synthesis, we are developing approaches to reduce solvent usage as well as initiatives for replacing hazardous solvents with more sustainable or less hazardous alternatives to reduce environmental impact.”
However, ensuring that all stakeholders buy in to this kind of philosophy is no easy task. “Internally, our team is motivated and proud to work for an organisation making a tangible impact,” outlines ten23’s Mahler. “On the customer side, engagement varies. Smaller biotechs are understandably more focused on product development than ESG compliance, and large corporates often express interest – particularly at the C-suite or ESG leadership level – but some operational functions like procurement may not yet be fully aligned.”
“That said, we believe sustainability should not be viewed as a cost, but as a smart, long-term investment, just like quality. If built in from the start, it doesn’t need to be expensive or burdensome.”
The Move to Modular
Pharma manufacturing facilities themselves are also changing. Greenfield investment is up, with both pharma companies and CDMOs investing in repeatable, modular layouts. According to Mordor Intelligence, the global modular pharmaceutical manufacturing market was valued at USD 2.56 billion in 2025 and is projected to grow to USD 6.4 billion by 2030.
CDMOs CordenPharma, Thermo Fisher Scientific, and Bachem have all announced Swiss investments into modular production: Corden spending EUR 500 million on a greenfield peptide manufacturing facility near Basel; Thermo Fisher launching a 1.5-million-square-foot biologics manufacturing site in Lengnau designed for flexible stainless-steel and single-use bioreactors; and Bachem constructing Switzerland’s largest production facility for peptides and oligonucleotides, key ingredients in wildly popular obesity drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound.
“As global supply chains fragment, companies are choosing to invest in localised, purpose-built facilities rather than retrofitting older assets,” states Thorsten Hoppe, technologies president at Bilfinger, an industrial services firm that helps its clients design, build, operate, and maintain industrial plants.
Noting the relevance of this trend for Europe and Switzerland, Hoppe adds, “We are witnessing a gradual move away from highly centralised production towards regionally anchored, deglobalised models. As a result, companies will increasingly adopt modular, repeatable plant designs that can be implemented across different geographies without sacrificing quality or efficiency.”
He outlines the benefits of the modular model thusly: “What sets us apart is our ability to provide process systems, particularly bioreactors, purification equipment, and the process piping that connects them in a modular, standardised format: skid-mounted or ‘superskid’ units, depending on scale.”
“These modules are fully assembled and tested off-site before delivery, dramatically reducing on-site installation time, lowering risk, and ensuring a far higher level of delivery predictability. In an industry where manufacturing timelines can define product success, that reliability is a major advantage.”
The Swiss Gold Standard
Finally – and perhaps most importantly – it is the talent, expertise, infrastructure, regulatory framework, planning regulations, and location of Switzerland itself which is attracting manufacturing investments to the country.
“The Swiss quality standard, combined with our strategic geographic locations and focused capabilities, creates a compelling value proposition for clients seeking reliable manufacturing partners,” exclaims Biosynth’s Leblanc.
“Being based in Switzerland has definitely been a strategic advantage,” agrees ten23’s Mahler. “Despite the location, many of our clients are global – including from the US – and seek us out specifically for our capabilities, not just convenience. That level of trust and reach speaks to the quality and uniqueness of the services we provide.”
“Switzerland’s reputation for political and economic stability provides substantial client confidence, particularly in today’s uncertain global environment,” adds Fritschi of CARBOGEN AMCIS. “Our Swiss operations represent stability and reliability that clients value highly, especially when managing critical supply chains for life-saving therapeutics.”
He concludes, “Our Swiss workforce demonstrates exceptional longevity and commitment, with many employees maintaining decades-long tenure. This stability ensures consistent quality, not merely GMP compliance, but comprehensive work quality that clients can depend upon. When clients invest in our services, they receive predictable, high-quality outcomes.”
