LGM Pharma Strengthens U.S. CDMO Capacity and Directs Onshoring, Supply-Chain Risks

LGM Pharma is a US-based CDMO whose drug product division is broadening across three sites in Colorado, California, and Texas. Recently, LGM Pharma announced the upcoming expansion of its drug product sites in Rosenberg, Texas, and Colorado Springs, Colorado, by investing an additional $9 million into the sites.

Specifically, the Colorado facility is working on oral solid dosages by offering R&D services, pilot plant capabilities, and a small commercial footprint for that market segment. Whereas LGM decides to unveil what they’re calling ‘branded generics’ in the next two to three years from this site, some of which cover orally disintegrating tablets for products that have never been given to patients in that dosage form.

Hamilton Lenox, Chief Commercial Officer, and Matt Grazioli, Senior Marketing Manager, of LGM Pharma, said that they are shifting two of the products to their Colorado Springs location, which are commercial, oral solid products for rare diseases, & also seeking products for orphan designation as well.

According to Towards Healthcare, the U.S. oral solid dosage CDMO market is projected to experience significant growth, with estimates suggesting the market size will increase from USD 15.33 billion in 2026 to approximately USD 27.2 billion by 2035, representing a compound annual growth rate (CAGR) of 6.58% from 2026 to 2035.A rise in demand for generic drugs, the development of virtual pharmaceutical companies relying completely on outsourcing, & the rising need for specialized, complex formulations, including controlled-release and high-potency APIs (HPAPIs), fuel the market growth. The market trend has been pushing key firms, such as Catalent and Lonza, to deploy automated, continuous production lines to reduce expenses, speed up scale-up, and meet stringent quality standards.

Exploration of AI Solutions & An Emphasis on Parameters

According to Towards Healthcare, the U.S. oral solid dosage CDMO market has been encouraging CDMOs to use AI-enabled platforms, like pharmacokinetic (PK) modeling to study molecular properties & push early-stage formulation development, which massively lowers the risks of trial-and-error in R&D. Moreover, another opportunity is waiting across the market: the expansion of specialized formulation techniques, including hot-melt extrusion, spray drying, and lipid-based drug delivery, to aim at complex solubility & bioavailability.