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Why the current CDMO model is failing small-batch manufacturing and what needs to be done.
April 21, 2025
By: Sam Chia
Senior Director of Operations MS&T, Pharmaceutics International, Inc. (Pii)
What happens when a life-saving drug is delayed not because of science, but because the industry can’t keep up? That’s the crisis facing aseptic small-batch manufacturing today. Precision medicine, biologics, and orphan drugs are pushing the limits of conventional production. But most manufacturing processes weren’t designed for this. To survive, manufacturers must evolve, and fast.
Small-batch manufacturing is no longer a niche segment of pharmaceutical production, it is rapidly becoming a necessity. The rise of biologics, precision medicine, and orphan drugs has increased demand for smaller, high-value production runs, putting pressure on manufacturers to adapt. Unlike traditional mass production, these therapies often target small or even individual patient populations, making flexibility, efficiency, and sterility essential during aseptic processing.
Legacy manufacturing frameworks were designed for large-scale operations, making small-batch production more complex and costly. Good Manufacturing Practice (GMP) standards, compliance requirements, and facility costs remain the same regardless of batch size, placing a disproportionate burden on small-batch producers. Additionally, frequent product changeovers increase the risk of contamination and production inefficiencies, further challenging the viability of small-batch aseptic processing.
There are several challenges, technological advancements, and regulatory adaptations shaping the future of small-batch aseptic manufacturing. As the industry shifts toward specialized, high-value therapies, manufacturers who embrace these solutions will be best positioned to deliver life-saving treatments safely and efficiently.
One of the most pressing concerns in small-batch manufacturing is the limited availability and high cost of active pharmaceutical ingredients (APIs). Many drugs produced in small batches—such as orphan drugs and personalized medicines—are formulated with rare or difficult-to-source APIs, making it critical to minimize loss during production.
Because many small-batch drugs rely on scarce and high-cost APIs, even minor losses during formulation, filtration, or filling can have significant financial and operational consequences. Unlike large-scale production, where minor inefficiencies can be absorbed across bulk volumes, small-batch manufacturing has little margin for waste, making precision at every stage essential. This challenge is particularly pronounced in personalized and orphan drug production, where limited API availability means that lost material cannot easily be replaced. To address this, manufacturers must implement high-precision dispensing, low-retention transfer systems, and optimized filling processes to ensure maximum product recovery while maintaining aseptic conditions.
Small-batch aseptic manufacturing inherently operates at a higher cost-per-unit than larger production runs. This is because fixed costs like facility operations, labor, and regulatory compliance are the same regardless of batch size.
Additionally, equipment validation, cleanroom operation, and personnel expenses remain high, even when manufacturing only a few hundred or thousand vials. This creates a constant challenge for manufacturers, who must balance the need for customization with cost efficiency while still maintaining compliance with strict aseptic processing requirements. As the demand for personalized and orphan drugs grows, companies must adopt cost-effective process innovations to offset these financial pressures without compromising product quality or sterility.
Unlike high-volume manufacturing, where facilities can focus on a single product for extended periods, small-batch manufacturing requires frequent changeovers between different drugs. Cross-contamination risks are particularly pronounced in small-batch production, where frequent transitions between different drug formulations increase the likelihood of residual contamination. This risk is especially significant when handling highly potent compounds or biologics, as even trace amounts of cross-contamination can compromise product integrity. Unlike large-scale production, where facilities can dedicate entire lines to a single product, small-batch manufacturers must constantly adapt their equipment and processes to accommodate new formulations, increasing sterility challenges.
Each product changeover requires extensive cleaning and revalidation, adding both downtime and operational costs. For personalized medicine and autologous cell therapy, where treatments are tailored to individual patients, even the slightest contamination can render an entire batch unsuitable for use. To mitigate these risks, manufacturers must implement closed-system processing, rigorous cleaning protocols, and automation-driven contamination controls to ensure aseptic conditions are consistently maintained.
One of the biggest challenges in small-batch aseptic manufacturing is that regulatory frameworks were originally designed for large-scale production. While GMP regulations ensure safety and efficacy, they often do not account for the flexibility required in small-batch manufacturing.
Because validation, documentation, and compliance requirements apply equally to both large and small batches, smaller-scale manufacturers face a disproportionate regulatory burden. Approval timelines remain lengthy and complex, creating bottlenecks for patient-specific therapies, such as cell and gene treatments, where rapid turnaround is essential. Additionally, the high cost of compliance can be especially prohibitive for CDMOs and smaller manufacturers, who must navigate a dense regulatory landscape while striving to maintain operational efficiency and cost-effectiveness.
One of the biggest drivers of waste and inefficiency in small-batch manufacturing is product loss during formulation, transfer, and filling.1 With APIs often being expensive and scarce, every drop matters. Robotic filling systems offer precise, controlled dispensing, minimizing API retention in transfer lines and reducing human handling errors that could lead to waste. Vision tracking and in-line monitoring further enhance efficiency by dynamically adjusting fill levels in real-time, ensuring maximum product recovery and minimizing material waste.
By reducing product loss, robotic systems help offset high per-unit costs in small-batch aseptic processing.
One key benefit of robotic aseptic filling lines is the ability to streamline changeovers between different products. Unlike manual or semi-automated systems, where changeovers require extensive reconfiguration, robotic systems adapt quickly to different container types, reducing downtime.
Robotic systems achieve this efficiency through multi-axis robotic arms, which can handle various vial and syringe formats without requiring extensive mechanical adjustments.2 Additionally, programmable filling parameters enable the system to automatically adjust for different drug formulations, eliminating the need for manual recalibration. To further enhance efficiency, automated decontamination systems reduce the time and labor required for cleaning between batches, minimizing the risk of contamination while ensuring aseptic conditions are consistently maintained.
Robotic systems enhance sterility and efficiency and help future-proof facilities for the growing demand for personalized and small-batch therapies.
Traditional multi-use systems require rigorous cleaning and revalidation between batches, adding time and cost to production. In contrast, pre-sterilized tubing, connectors, and isolators eliminate these steps, ensuring a faster and safer workflow while maintaining strict aseptic conditions. By removing the need for manual sterilization, Single-use technologies (SUT) minimize the risk of cross-contamination, making it particularly valuable for high-potency biologics and personalized medicines.
Beyond sterility benefits, SUT also enhances operational efficiency through its plug-and-play design, which allows for faster setup and batch transitions. This adaptability is essential in small-batch processing, where frequent product changeovers are common. Additionally, low-retention materials in single-use components help minimize API loss, improving overall cost-efficiency. As small-batch manufacturing continues to grow, the adoption of single-use systems will remain a key factor in reducing operational complexity while maintaining product quality.
For manufacturers producing high-potency biologics or gene therapies, SUT reduces cross-contamination risks while ensuring high sterility standards.
Handling highly potent APIs (HPAPIs) and biologics presents unique challenges in aseptic manufacturing, requiring specialized containment strategies to protect both operators and the environment. Because these substances can pose significant health risks, maintaining strict sterility and containment is essential. Single-use isolators and closed-system processing help address these concerns by creating fully enclosed environments that prevent accidental exposure and contamination.3 These systems are particularly valuable in small-batch production, where frequent product changeovers increase the risk of cross-contamination.
Beyond safety benefits, single-use technologies improve operational efficiency by reducing exposure risks for operators handling cytotoxic or hazardous APIs. Unlike traditional stainless-steel systems, which require extensive cleaning and validation, single-use components allow for faster changeovers and lower cleaning times, making small-batch production more agile and cost-effective. As demand for high-potency biologics and personalized therapies grows, manufacturers will continue to rely on advanced containment solutions to balance safety, efficiency, and regulatory compliance.
By eliminating manual sterilization and equipment turnover time, SUT enhances both safety and efficiency, making it a cornerstone technology for aseptic small-batch manufacturing.
Traditional fixed cleanroom spaces are often inefficient for small-batch aseptic manufacturing, where frequent product changeovers demand a more adaptable and flexible approach. Unlike large-scale production, where dedicated cleanrooms can be assigned to a single drug for extended periods, small-batch facilities must accommodate multiple products while maintaining strict sterility standards. To address this challenge, manufacturers are turning to modern modular cleanroom designs, which offer greater flexibility, efficiency, and contamination control.
These modular systems allow manufacturers to segment production areas based on different product classes, reducing the risk of cross-contamination and ensuring compliance with aseptic processing requirements. Additionally, they enable quick reconfiguration of processing lines,4 making it easier to scale up or adapt production to meet shifting demands. By optimizing facility usage, modular cleanrooms help minimize unused space and inefficiencies,2 ultimately improving cost-effectiveness and overall operational agility.
By incorporating mobile and scalable cleanroom setups, manufacturers can better accommodate emerging drug modalities like personalized medicine and cell therapies, which require specialized handling.
Maintaining sterility is paramount in aseptic small-batch manufacturing, but traditional cleaning methods require disassembly and manual scrubbing, leading to significant downtime and labor costs. Steam-in-Place (SIP) provides a solution by sterilizing equipment in place with steam (around 121°C) circulated through the system without disassembly. This effectively turns the equipment into an in-place autoclave, decontaminating all internal surfaces. Advanced SIP and other automated decontamination systems offer key benefits for small-batch operations:
Compared to manual scrubbing or external autoclaving, SIP is faster, avoids chemical residues, and is easily automated. These technologies allow manufacturers to increase throughput without compromising aseptic conditions.
Regulatory frameworks for pharmaceutical manufacturing were designed for large-scale production, often creating compliance challenges for small-batch operations that require greater flexibility and speed. One example of how regulatory adaptation can support small-batch manufacturing is the 503B outsourcing program,5 which was established to address drug shortages by allowing compounding pharmacies to manufacture small batches of drugs under FDA oversight. Unlike traditional pharmaceutical manufacturing, where products must go through lengthy approval and validation processes, 503B outsourcing facilities operate under a more flexible regulatory framework, enabling faster production and distribution of critical medications.
This program is particularly beneficial for low-volume, high-need drugs, as it allows for smaller, controlled production runs without the extensive compliance burdens of full-scale GMP manufacturing. 503B facilities must still adhere to strict quality and sterility standards, but they follow a risk-based oversight model that balances safety with production efficiency.
Key benefits of the 503B model include:
Given the success of 503B outsourcing in stabilizing drug supply chains, similar regulatory adaptations could benefit biologics and personalized medicine. Applying risk-based compliance models to small-batch aseptic manufacturing would allow cell and gene therapies, orphan drugs, and personalized treatments to reach patients more quickly without compromising safety.
To ensure that small-batch aseptic processing can scale effectively, industry leaders and CDMOs must push for more flexible regulatory frameworks that align with the unique needs of low-volume, high-value drug production. This includes GMP standards that scale based on batch size and risk profile, as well as accelerated regulatory pathways for personalized and orphan drugs that require faster approvals. Additionally, adaptive validation approaches should be implemented to distinguish between large-scale and small-batch requirements, reducing unnecessary compliance burdens.
While regulatory change is slow-moving, ongoing collaboration between CDMOs, industry stakeholders, and regulatory agencies will be essential in modernizing compliance standards. By advocating for risk-based validation and streamlined approval processes, manufacturers can improve efficiency, lower costs, and accelerate patient access to critical therapies.
The demand for personalized medicine, biologics, and orphan drugs continues to grow, requiring manufacturers to adopt more agile and efficient production models. While automation, single-use technologies, and regulatory adaptation are already shaping small-batch aseptic processing, the next wave of innovation will push these capabilities even further.
As automation continues to reshape small-batch aseptic manufacturing, the next frontier lies in AI-driven process optimization. AI-driven predictive analytics will enhance fill accuracy, sterility monitoring, and contamination prevention, ensuring greater consistency in small-batch aseptic manufacturing. Machine learning models will enable real-time process adjustments, reducing reliance on manual intervention and minimizing batch rework. Additionally, AI-powered supply chain forecasting will help anticipate API shortages, allowing manufacturers to proactively address supply disruptions and maintain production efficiency.
Over the next 10-15 years, aseptic cleanrooms will move toward full automation, significantly reducing human contact—the greatest source of contamination risk. Autonomous robotics will take over handling, filling, and quality control, streamlining production by minimizing changeover times and enhancing batch consistency. Additionally, modular, AI-managed cleanrooms will adapt in real time to accommodate various small-batch products, optimizing efficiency while maintaining the highest sterility standards.
The future of aseptic small-batch manufacturing isn’t just about leading. Manufacturers who embrace automation, rethink facility design, and challenge outdated regulatory bottlenecks will not only survive this shift, but they’ll also own the market. The question isn’t if change is coming, but who’s ready to make it happen.
References
Sam Chia is the Senior Director of Operations MS&T at Pharmaceutics International, Inc. (Pii), with over 26 years of experience in aseptic manufacturing and sterile processing. His career spans roles in production and operations optimization. Sam is fluent in both English and French, which complements his extensive international experience in pharmaceutical manufacturing and operational management across the U.S. and beyond.
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