Strategy & Management

CPhI 2014 Experts Statements: Dr. Max Braun and Nicolas Taillardat, Solvay

How the Pharmaceutical Ingredients and Custom Synthesis Industry Attunes to Rapidly Shifting Demands

01.10.2014 -

1. What roles do contract research organizations (CROs) and contract manufacturing organizations (CMOs) play in the drug discovery/development value chain today, and how will their role change in the future?

Dr. M. Braun (Solvay): In the future, the role of the CRO/CMO will increase more and more. Pharma companies make the lead discovery and do patenting, registration and marketing. In between - after the lead, before marketing - there is a huge gap, which has to be filled by CROs/CMOs. Solvay is actively collaborating with all players of the pharma value chain, including projects with CROs and CMOs.

2. How have the requirements by pharma companies changed over the years, and how can suppliers manage to live up to them?

Dr. M. Braun (Solvay): In the past (more than 10 years ago), pharma companies looked more for the generalists (especially in Asia and with focus on India). Today their demand is changing for CROs and CMOs in the frame that the selected organization needs to contribute cutting-edge technology and unique skills, which, due to complexity, the pharma companies don't have in their own portfolio. Solvay is globally based and best-positioned with its fluorine pilot plant as well as research and development expertise and team.

3. Which new business models, like project-based or value-based outsourcing, could turn out to be the most promising guarantors for a successful cooperation with the pharmaceutical industry?

N. Taillardat (Solvay): Pharma in-licenses needed technologies or skills project by project. Solvay believes more in a partnership relationship than the former toll-manufacturing situation/business model.

4. The establishment of shared risk/shared reward partnerships has increased significantly. Can these partnerships accelerate drug discovery and fill up the innovation pipelines?

N. Taillardat (Solvay): From our point of view, Big Pharma still isn't open enough for a real partnership maybe due to IP reasons and educating potential competition as the partner/CMO might deal with other pharma companies as well.