Big Pharma is changing the way they do business....outsourcing is the name of the game for manufacturing...but this can be a tricky business as we all witnessed with the recent Heparin problem...and at some point in time the outsource may want to come in and deal directly...this goes on in every business that does private label manufacturing, but something new to big Pharma in a way...something they have not had to deal with up until now...so how does one handle the outsource company coming in for a lesser amount of money? Intellectual property is still alive and well, but as the world turns, that issue will tend to get tied up in our court systems for some time to come...what they are doing here is to change directions and invest in BioTech companies....but those also exist overseas as well....BD
Drugmakers are pulling out of manufacturing at an unprecedented rate, according to a new report from IMS Health. Four of the top 10 pharma players announced big new outsourcing programs last year. That's evidence that pharma execs are thinking in vastly different ways from their predecessors, who believed R&D and manufacturing had to work hand-in-glove, and that the skills required to make drugs couldn't be found in emerging markets.
The drug industry should also be mindful of lessons from other industries, such as electronics. For example, Taiwan's Acer was a contract manufacturer but eventually developed its own personal computer brands and started to compete with its former customers.
"Contract manufacturers can turn the tables," says IMS, noting that concerns about intellectual property protection as complex manufacturing and processing information is signed over to third-parties has receded but "could well come back to haunt major pharmaceutical companies as the true cost and complexity of manufacturing becomes transparent."