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Global pharmaceutical outsourcing is a huge potential demand growth in key supply chain - medicine - pharmaceutical industries

The near term, outsourcing will not be much change in medicine

, but a better long term prospects, especially in the antibacterial field, because many will be waiting for approval of biological products outsourcing. As Asian companies mature, they became more and more experience and ability to meet the needs of customers, which in itself has created more opportunities for. Drugs Extension of the supply chain on the current and future medical outsourcing is extremely important dynamic effects. To meet Pharmaceutical companies Changing needs, contract manufacturers organizations (CMOs) have begun to expand the geographical scope in order to leave a footprint in the world. Recently, the CMOs in Asia began to set foot in North America and Western Europe, production and R & D operations, and Western CMOs also began to strengthen its position in Asia. To understand the impact of the development of pharmaceutical outsourcing key issues and factors, as well as the challenges facing the pharmaceutical outsourcing, the European pharmaceutical industry, recently hosted a "leading global pharmaceutical outsourcing organization by contract manufacturers," the current and future dynamics of the pharmaceutical outsourcing market explored. Western and Asian countries, the cost difference between suppliers Compared with North America and Europe, Asia, CMOs are usually considered to have low-cost advantages, but with rising labor costs, transportation restrictions, and Energy Shortage, this difference is gradually diluted. Dr.Reddy "sLaboratories pharmaceutical services and active ingredients division president AbhijitMukherjee pointed out, traditional manufacturing competitive in the global market already has. The cost difference between India and the West to some extent still exist, but Western countries by shortening the production process and improve production efficiency, has become more competitive in price. They use global supplier network and improve the efficiency of the price advantage of the completion of goals. Present, select provider can no longer focus on price, but also the ability of the overall service provided. Asian service providers need to demonstrate the technical difficulty of their service and production efficiency, which in the past is not needed. Of the CMO, the cost is not a single competitive advantage. Want to be successful, the cost and quality, safety, health, Environmental protection , Procurement and supply chain programs together. SAFC Supply Division Vice President EdRoullard that Adam Smith's "invisible hand" theory is the role of Western and Asian markets. Driven by many factors, increasing the cost Asian countries, the most obvious is that pharmacists and engineers in the labor costs. Although still lower than the Western suppliers, but with the demand caused by economic development, transfer, resource competition and the relative wealth of the expansion, the labor cost difference is gradually shrinking. Light of the current differences in the choice of Asian outsourcing customers Cooperation Project partners and to set strategic goals, usually require the ability to have a commercial. On the whole, has a common technology, common product quality and the general supply chain capabilities of Western suppliers to bear the greatest competitive pressure. Nevertheless, those who can provide a unique technology, or to ensure the safety of key raw materials supply chain companies, was able to use differentiation strategy, by providing value added products, to ensure the viability of which period. Dishman Pharmaceutical and Chemicals Division Europe Sell Director ChristianDowdeswell that the current business pressures can be viewed in two ways: First, the key cost elements in some of the prices rise, companies are slow in reacting to this; the other hand, investment is still very low cost Asian countries, still promote the development of pharmaceutical outsourcing in Asia. India PiramalHealthcare Chief Operating Officer N. Santhanam stressed that while the cost of growth in Asia than in Western countries, but as emerging countries have a strong technical gathering capabilities in Asia and the West there is a big cost difference. In Western countries, chemical or preparation of full-time staff costs accounted for the total cost of about 50% to 60%. The next 5 to 7 years, the proportion is likely not change. Contrast, Asian companies face the challenge of competition is usually not an hour cost rate, but by the means of production, technology and medicine R & D productivity problems caused way. The good news is, a large number of Indian and Chinese scientists are from the West to return to their homes, to help the motherland and the training of more scientific talent. Meanwhile, the high level of equipment has also contributed greatly to achieve productivity gains, however, to achieve rapid development in the future there is still a long way to go. United States Institute of Advanced Materials (AMRI), vice president of pharmaceutical production and R & D SteveHagen pointed out that the current economic situation has energy and raw material costs drop from the highest point in 2008 down. In a tight market, the more suppliers want to API To negotiate on price. If we can continue to reduce the cost of raw materials and strict quality standard, can provide the customers with low cost high quality assurance. Meanwhile, the employment and retention of qualified staff is also a way to win. Now, customers have expressed Asia outsourcing projects the level of internal resources needed attention. Which the use of internal resources is bound to increase the project cost. If necessary, can be borrowed from the American mode of communication, use of solid project management skills of its customers to reduce demand on internal resources.

Global pharmaceutical outsourcing is a huge potential demand growth in key supply chain - medicine - pharmaceutical industries

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