How to disrupt an industry as big as pharma for the better?

In this interview, hear from Matthew Wise, Head of Data at CCD Partners, on the companies they've been looking into that are offering new and interesting perspectives that have the potential to shake up the pharmaceutical industry, and how they're doing this. 

Could you please introduce CCD Partners?

CCD Partners is a consultancy focused on unlocking potential in the chemicals and life sciences lower-mid market. We work closely with management teams and business owners to drive transformative corporate development projects, including acquisition programmes, succession planning, private equity strategies, and divestments. Our services are structured into three key areas: Insight (providing data and tailored analysis for clients), Network (connecting and engaging with industry leaders), and Execution (delivering successful transactions from start to finish).

Where does CCD Partners operate in the pharmaceutical value chain?

Much of CCD Partners' expertise is centred around the lower-midsized, privately-owned businesses. These companies typically have a niche offering, often taking the form of a unique product or service, geographical focus, or end market specialisation. When CCD Partners was founded, we noticed that this segment was largely underrepresented, despite many of these companies being high-quality and surprisingly large in size. Over time, we've developed a specialty in identifying, understanding, and building relationships with decision-makers in these businesses, allowing us to provide real value in an often-overlooked market.

What are the key factors that make these companies stand out as industry disruptors?

This is a fascinating part of the pharmaceutical sector because each company is unique, often shaped by its founding vision and the problem it set out to solve. However, what makes them particularly "disruptive" is their ability to adapt and innovate. They are experts in their fields, with decades of experience, yet they remain nimble and capable of making quick corporate decisions – whether it's launching new products, making acquisitions, or entering new markets. This agility, often enabled by their owner-managed structure, allows them to move much faster than larger corporate counterparts.

Are there any particular trends you’ve seen from the CPHI Milan Disruptors that are driving the pharmaceutical industry forward?

One key trend we’ve observed is the rapidly growing focus on bio-based ingredients, particularly in the personal care and cosmeceutical sectors. A few years ago, the industry showed interest in these green ingredients, but today, we’re seeing companies make significant efforts to actually incorporate them into their formulations. A major driver behind this shift is consumer demand – people are now more willing to pay a premium for green and bio-based products. At CCD Partners, green chemicals and ingredients are becoming a core focus, aligning with this trend. We’re even preparing a new Disruptor Watchlist to stay ahead of the curve!

How is the trend of deglobalisation affecting the pharmaceutical industry?

Since the COVID-19 pandemic, we've seen a growing trend of reshoring, where companies are increasingly looking for suppliers within their own continent to ensure supply chain stability. This shift has been particularly evident from our conversations with disruptors, as many (especially CROs and CDMOs) are increasingly relying on business from Europe and North America. Despite this, Asia remains a key player, with countries like China, Japan, and South Korea offering increasingly advanced technologies and services. However, local disruptors will always play a significant role in this landscape, thanks to their specialised geographical focus, particularly for ingredient and chemical distributors.

What role does private equity play in this portion of the sector?

Private equity is increasingly drawn to this segment of the market due to the untapped value these niche, family-owned businesses offer. Investors see opportunities to inject capital and help internationalise these companies, often at more attractive valuations than larger, more established firms, which tend to command higher transaction multiples. Additionally, there’s a growing number of private equity firms specialising in chemicals, life sciences, and materials. Like CCD Partners, they’ve recognised that a chemistry-driven approach is essential in these markets. We expect to see more consolidation by private equity, especially since the ownership structures in these businesses allow existing leadership – or the next family generation – to maintain prominent roles, a dynamic that’s often not possible in a corporate transaction.

To find about which companies are set to drive innovation in the field, download the full Disruptor Watchlist here.