Why Independence & Confidentiality Matter in Contract Formulation Development

Posted by CJB Applied Technologies on Jun 22, 2021 10:05:00 AM

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A great relationship centers around traits such as openness, honesty, and good communication. These characteristics matter whether you’re seeking a friend or a business partner. 

When you’re looking to hire a contract development and manufacturing company (CDMO), you also need to ensure the organization respects your rights to intellectual property protection.

Here’s why independence and confidentiality matter when it comes to contract formulation development.

 

Why Does Independence Matter in Formulation Development?

When a CDMO works for you or any other customer, they should treat each project separately and independently. The end product is yours—it’s not something the CDMO should have rights to. This work was performed on your behalf and at your cost unless you have an agreement that states otherwise.

This prevents the CDMO from duplicating your formula and giving it to another client or vice versa. The last thing you want is one of your competitors coming out with an identical product or to get a knockoff of someone else’s formulation. The CDMO may share skills and knowledge with other clients but not specific project details. They must go the extra mile to start from scratch with each new project.

Independence also matters in formulation development when it comes to chemistry. At CJB Applied Technologies, we don’t make any of the materials that go into your formulation. We have access to chemistries from companies all over the world. This allows us to create the best product with optimum functionality. We’re not beholden to branded chemistry, and we don’t tie you to it either.

When you work with a CDMO that creates and uses its chemistry in your formulation, you may become dependent on that organization for those materials. This may force you to return to the CDMO regularly to get that specific chemistry for as long as you make the product. This may not be your most cost-effective option or an easy process.

 

Why Does Confidentiality Matter in Formulation Development?

You’re not the only customer working with your CDMO. The organization typically does projects for numerous clients, and some may be competing within the same industry. The CDMO must take steps to protect each company’s intellectual property and trade secrets. As you have conversations with the staff at your CDMO and move through the development process, this confidentiality must be maintained.

Your CDMO should not be sharing any of your information with other customers. Likewise, the organization must not tell you details about another client’s formulation. Your project should never be known to anyone outside of your company or the CDMO.

This confidentiality pact is usually recognized formally with a non-disclosure agreement (NDA). This document should be in place before any work is done on your project, and the arrangement should be mutual. Your CDMO also doesn’t want its intellectual property or trade secrets shared within its industry.

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Why Your CDMO Needs to Be Independent & Confidential

Now you know why independence and confidentiality are important in formulation contract development.

When you work with a CDMO that emphasizes these qualities, you’ll get a great product along with peace of mind. You’ll know your assets are protected, be able to count on a good supply chain, and maybe even enjoy a better cost position. 

CJB Applied Technologies understands the value of independence, confidentiality, and overall good business processes. Contact us to talk about your next project today! 

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