Strategy & Management

CPhI 2014 Experts Statements: Dr. Andrea Missio, Business Development Director, WeylChem

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?

Modern CROs/CMOs have moved away from the simple offer/demand business model, which operated well in the last 20 years but no longer reflects the dynamics of the current pharmaceutical market. In these days, a successful CRO/CMO must expand the breadth of its competencies and offers. For example, manufacturing capacity abounds all around the globe, and in order to succeed a modern CMO shall offer additional service, e.g., storage of finished goods (in case there is a delay in market introduction), or it shall proactively seek to shorten the supply chain by developing partnerships with local suppliers. These activities offer the additional advantage to quickly react to a changing market environment, responding to either upsides (growing demand requires faster sourcing) or downsides (slow market acceptance may require storage capacity).

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?

We strongly believe that the key to a successful cooperation with a pharmaceutical company is the added value that a CMO brings to the partner. By added value, one should understand the ability to quickly access existing assets, without the need to invest in-house. By leveraging those assets, the pharmaceutical partner gets access to the experienced staff that manages those assets. Another added value is the flexibility to accommodate changing delivery schedules. This is particularly advantageous in the early stages of development and in the initial launch phase. A talented pool of process chemists who are trained to work in a collaborative and transparent manner with their customers brings further value to the partnership. Life-cycle management plays an important role as the product matures on the market. To continuously improve the processes, while actively scouting for the leanest supply chain, rounds the offer in terms of added value that the pharmaceutical industry demands today. Quality is taken for granted since this parameter cannot be compromised at all. The WeylChem Group of Companies operates according to these principles and collaborates with its commercial partners to explore new avenues, which will add value to their business relationship.