AAI Pharma's Lee Karras talks about contract-service demand. - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

AAI Pharma's Lee Karras talks about contract-service demand.

Pharmaceutical Technology
Volume 34, Issue 1, pp. 72

Q&A with Lee Karras, CEO of AAI Pharma

PharmTech:
What is the biggest industry challenge you're now facing?



Karras:
Without question, slowing demand for contract services. A decrease in venture-capital (VC) funding for startup and biotechnology companies and thin pipelines in Big Pharma have resulted in short-term stagnation of demand for contract development and manufacturing organizations (CDMOs) and for contract manufacturing organizations (CMOs). We have shifted our short-term focus to supporting more commercial products and focusing on the lines of business that are more or less unaffected by the slowdown such as clinical packaging and distribution, formulation technologies, and parenteral manufacturing. In the long run, we feel that VC funding and pharmaceutical outsourcing will return to normal levels because history indicates that the industry is cyclical in nature.

PharmTech:
How do you stay abreast of new developments in the industry?

Karras:
We listen carefully to our customers because they know better than anyone what the industry is looking for and what new trends are emerging. The industry is seeking novel dosage forms, potent compounds, clinical packaging, and drug-delivery technologies.

PharmTech:
Do you see a new industry trend emerging?

Karras:
Consolidation is a trend we have seen in the contract research industry and will likely see in the CDMO and CMO spaces. Many undercapitalized companies will look to consolidate as the pace of growth slows in the CDMO and CMO spaces.

PharmTech:
What is the most common demand your clients are making of you?

Karras:
Now, with the economic downturn and decrease in VC funding, the demands are economic in nature. Price concessions, extended terms, and creative deal-making are becoming more common.

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
What role should the US government play in the current Ebola outbreak?
Finance development of drugs to treat/prevent disease.
Oversee medical treatment of patients in the US.
Provide treatment for patients globally.
All of the above.
No government involvement in patient treatment or drug development.
Finance development of drugs to treat/prevent disease.
23%
Oversee medical treatment of patients in the US.
14%
Provide treatment for patients globally.
7%
All of the above.
47%
No government involvement in patient treatment or drug development.
9%
Jim Miller Outsourcing Outlook Jim MillerOutside Looking In
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerAdvances in Large-Scale Heterocyclic Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler New Era for Generic Drugs
Sean Milmo European Regulatory WatchSean MilmoTackling Drug Shortages
New Congress to Tackle Health Reform, Biomedical Innovation, Tax Policy
Combination Products Challenge Biopharma Manufacturers
Seven Steps to Solving Tabletting and Tooling ProblemsStep 1: Clean
Legislators Urge Added Incentives for Ebola Drug Development
FDA Reorganization to Promote Drug Quality
Source: Pharmaceutical Technology,
Click here