Drugmaker Facility Cited for Contamination

An investigation into a Mochi facility, a GLP-1 drugmaker, reportedly found issues with contamination and untrained workers. While not a cell and gene therapy facility, the findings highlight operational and regulatory risks common across the CDMO sector, reinforcing the value of automation and electronic batch records in mitigating human error.

- The investigation into the Mochi facility, initiated in late 2024 following whistleblower complaints, found that the company hired unlicensed day laborers from home improvement store parking lots to handle pharmaceuticals in their clean room. These workers were brought in to manage the high volume of thousands of medicine kits shipped daily across the U.S. - Beyond untrained workers, the facility had significant quality control failures, including pharmacists being pressured to verify prescriptions with only a second or two of examination time for each vial. This led to customers receiving and posting photos of vials containing visible specks of contamination. - To cut costs, the company purchased cheaper, substandard glass vials from the e-commerce site Alibaba, which were prone to breaking and shattering. Additionally, instead of using medical-grade ice packs for shipping, employees used frozen children's popsicles to keep the medication cold, which only ceased after numerous customer complaints. - The cell and gene therapy CDMO market is projected to grow significantly, with one forecast predicting an expansion from $6.41 billion in 2024 to $75.32 billion by 2034, a CAGR of 27.94%. This growth is fueled by the increasing complexity of biologics like viral vectors and the rising demand for personalized medicine. - Data integrity is a major focus of FDA warning letters in recent years, with violations often related to microbiology and environmental monitoring. Electronic Batch Record (EBR) systems are critical for mitigating these risks by ensuring contemporaneous data capture, providing a complete audit trail, and reducing human error, with some companies reporting a 75-80% reduction in batch review time after implementation. - Manufacturing of viral vectors for cell and gene therapies faces challenges in scalability, moving from adherent cell cultures to suspension-based systems, and ensuring product quality, such as removing empty capsids. There is a recognized "production gap" between what is feasible for early-phase clinical trials and the larger quantities needed for late-stage trials and commercial supply. - AI and machine learning are being increasingly adopted in bioprocess optimization to analyze large datasets from sources like manufacturing execution systems (MES) and high-throughput screening. These technologies enable predictive modeling of process parameters to improve yield and quality, and support the development of digital twins for real-time process simulation and control. - The biotech funding climate is showing signs of recovery, with a rebound in deal-making and strategic investments flowing into high-potential areas like cell and gene therapy, which saw nearly $15 billion in funding in 2025. However, volatility in venture capital funding remains a key risk for the CDMO industry, which is highly dependent on the project pipelines of small and mid-sized biotech clients.

Get your own daily briefing

Scout delivers personalized news, insights, and conversations tailored to your role and industry.

Download on the App Store

Shared from Scout - Be the smartest in the room.