Outsourcing projects to CDMOs is becoming increasingly prevalent as drug sponsors look to optimize their supply chain or conserve internal resources for other projects. In 2021 alone, 46% of newly developed drugs were outsourced. Drug sponsors can reap a variety of benefits by outsourcing late-phase projects, but it comes with risks. The technology transfer that must occur to transition a late-phase project to a CDMO is complex and costly. The average cost of a tech transfer is around $1M, so partnering with the wrong CDMO can be a costly mistake.