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CMOs were evaluated based on capabilities and format, certifications, audit history, industry engagement, industry interviews, and more.
April 14, 2022
By: Sean Moloughney
This story was updated on May 2. After a two-year analysis of contract manufacturing organizations serving the dietary supplement and natural products industry, strategy and insights firm Trust Transparency Center (TTC) has developed a database of CMO capabilities, expertise, and their track record in market. TTC also unveiled its inaugural TRUSTYs award winners for best-in-class CMOs. The 2022 “Traditional Format” award went to Gemini Pharmaceuticals while Smart Cups won for the “Novel Format” category. “We at TTC have long been focused on supply chain transparency and best practices,” said TTC CEO Len Monheit. “One area that has traditionally been opaque and non-differentiated is contract manufacturing and manufacturing services and we at TTC are committed to providing transparency and differentiating tools. The TRUSTYs helps bring contract manufacturers out of the shadows and honors those that are higher quality, more transparent, and in fact differentiated.” Contract manufacturers were evaluated based on an extensive list of criteria surrounding capabilities and format, certifications, audit history, industry engagement, interviews with industry experts, and more. The “Traditional Format” award considered overall capabilities in capsules, tablets and softgels, company history, industry feedback and FDA inspection results along with industry engagements. Although this section of the award was close, Gemini Pharmaceuticals stood out based on their record, industry certifications, strong engagement and the outcomes of interviews, according to TTC. “Gemini Pharmaceuticals is deeply honored to be chosen by Trust Transparency Center as the first ever recipient of their Traditional Contract Manufacturers Award,” said Michael Finamore, Gemini CEO. “For years, Gemini has provided a foundation of openness and transparency through all aspects of manufacturing and supply chain with our business partners. Our customers’ appreciation for this partnership has led to our incredible growth and many shared successes. Through the efforts of key industry stakeholders like TTC who are determined to bring this industry to the next level, it’s clear the tolerance within industry for accepting things done behind closed doors is finally over.” In the “Novel Format” category, TTC looked for novelty, applicability, industry impact and a sense of added value. Smart Cups received the award based on its delivery optimization, accessibility/environmental impact, and applicability across several ingredient categories. “We are honored to receive a Trusty Award in recognition of Smart Cups Technology’s patented delivery system, which uses our proprietary technology to enable the printing of ingredients on any surface,” said Chris Kanik, Smart Cups founder and CEO. “While the technology was commercialized first in the beverage industry, Smart Cups’ aim is to create a new standard of environmentally conscious products across all industries, ultimately resulting in a more sustainable future. We are grateful to be recognized as innovators and best in class by the Trust Transparency Center.” TTC is making winner information available on its website and said it is committed to further develop transparency tools for the supplement industry, including deepening its contract manufacturer database. Monheit told Nutraceuticals World that TTC now as “a database and depth of information on over 200 contract manufacturers of supplement formats in the U.S. alone.” This is just the start of the project, and TTC intends to “dramatically expand this program,” he added. By spotlighting best-in-class CMOs, TTC hopes stakeholders will see that, ultimately, “the cream will rise,” especially amid all the supply chain issues in recent years. These top-level CMOs have “foresight,” Monheit said. “They protect their customers’ interests, they also protect their suppliers’ interests. The ones that are reinvesting in their supply chain relationships, both upwards and down, that’s the pragmatic way to approach things right now. That will rise.” TTC weighed several points of industry engagement, such as active support and participation in the ABC-AHP-NCNPR Botanical Adulterants Prevention Program (BAPP)—a long-term, multi-party coalition of herb quality and identity experts— and the Global Retailer and Manufacturer Alliance (GRMA), which aims to harmonize quality and safety standards. TTC also tapped into inspection observation history from FDA (Form 483s). Overall, while many companies are operating transparently, above board, there is a segment that is not. Monheit compared the sector to an iceberg, with as much as 60% of CMOs operating below the water line. “You never see them at industry events, they have very low minimums; they’re the folks that a lot of the Amazon and online brands go to,” Monheit said. He noted that in some cases, while contacting CMOs for this project, TTC staff couldn’t get past the receptionist. “There were a lot of red flags that came up as we went through this process. With our background and what we’re trying to do, it should have been a lot easier in some cases. We had red flags and warning signs all over the place.” Of course that leaves a middle swath of CMOs with room for improvement. Ultimately, best practices should start with transparency, engagement, and active participation with trade groups and industry, Monheit said. Overall, with continued success and growth in the dietary supplement market, the stakes are bigger now, he added. “We’re a bigger industry, and we’re on radar that we never used to be on.”
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