Negotiation Isn’t a Battle, It’s a Blueprint

Negotiation tends to trigger one of two instincts: go in swinging or avoid the hard stuff altogether. But in CDMO partnerships, especially for clinical-phase programs, it’s not about winning. It’s about building a foundation that supports the science, the timelines, and the people involved.

As someone in CDMO business development, I’ve sat on both sides of the negotiating table. I’ve seen deals stall over redlines and others move forward with just a few shared priorities and a lot of trust. The difference usually comes down to how both sides approach pricing, proposals, and long-term thinking.

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Pricing Should Reflect Value, Not Just Volume

Let’s start with the numbers. Sponsors are under pressure to stretch every dollar, and CDMOs are balancing capacity, talent, and risk. It’s easy to get stuck debating line items, but pricing should be about more than cost per batch or hourly rates. It’s about what that number represents.

When a CDMO quotes a project, the price often reflects more than the work itself. It reflects experience, infrastructure, and risk mitigation. That premium may feel like a hurdle, but in many cases, it’s what will keep your program from derailing when things get complex (and they usually do).

That said, flexibility matters. One of the most effective negotiation strategies I’ve seen is splitting a proposal into stage gates. Instead of locking in every detail upfront, we break the scope into manageable pieces, align on budget and deliverables for each stage, and adjust as the program unfolds. It shows the CDMO is invested, not just in the contract, but in the outcome.

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The MSA and Proposal: Paperwork with Purpose

The MSA isn’t just a formality, and the proposal isn’t just a quote. These documents shape how teams collaborate, escalate issues, and handle change. Treating them like a checkbox can cause friction later.

Too often, I see biotech teams try to negotiate every clause up front, down to the formatting of reports or hypothetical liabilities that may never come into play. While it’s important to protect your company, it’s just as important to protect the momentum of your program.

My advice: don’t let the perfect get in the way of the practical. 

Focus on aligning incentives and defining the scope clearly. Then, take the time to walk through the proposal live with the CDMO’s SMEs. Talk through assumptions, pressure points, and possible pivots. That conversation often does more for program health than any contract language ever could.

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Scope Creep Isn’t the Enemy, Surprises Are

Everyone worries about scope creep, but change is inevitable. New data, formulation shifts, or regulatory feedback can all impact the path forward. The goal shouldn’t be to eliminate scope creep, but to manage it collaboratively.

That starts with transparency. Be upfront about your constraints, timelines, and non-negotiables. On the CDMO side, be honest about what you can and can’t do, and be proactive in offering solutions, not just pushing back on change orders.

Some of the best programs I’ve worked on succeeded because we weren’t rigid. We brought in the right technical experts early, adjusted scope as we learned more, and made smart trade-offs. That level of agility only happens when both sides feel like they’re part of the same team, not playing tug-of-war over every milestone.

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Final Thought

Negotiation is part of the job, but it doesn’t need to be adversarial. If you treat it like a blueprint rather than a battlefield, you’ll spend less time redlining and more time advancing the science.

At the end of the day, the contract is important, but it’s not what drives success. It’s the ongoing communication, mutual respect, and shared commitment to the program that matter most. A fair deal isn’t just about getting the best price or the tightest language, it’s about setting both teams up to make decisions together, adjust when things shift, and stay aligned through the inevitable curveballs.

For biotech sponsors: push for clarity, not just discounts. Get to know how your CDMO thinks, how they prioritize risk, and where they can be flexible. 

You’re not just buying services; you’re choosing a partner who will either support your momentum or slow it down.

For CDMOs: don’t be afraid to guide the conversation. Your expertise has real value, and when you engage early and transparently, it builds credibility. Show that you're willing to work with sponsors’ constraints without compromising the integrity of the work.

When both sides negotiate with the long game in mind, you're not just creating a contract. You're setting the tone for how the whole partnership will function.

That mindset shift makes all the difference.