Navigating the Global Manufacturing Supply Chain - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Navigating the Global Manufacturing Supply Chain
As the strategic value of emerging markets increase, pharmaceutical companies increase their R&D and manufacturing investments.


Pharmaceutical Technology
Volume 37, Issue 3, pp. 56-59

A BRIC focus

Among the emerging markets, the BRIC (Brazil, Russia, India, and China) countries represent the largest areas of pharmaceutical industry growth. China's pharmaceutical market was valued at $66.7 billion in 2011 and is expected to reach between $155 billion and $165 billion by 2016, representing a CAGR of 15% to 18% between 2012-2016, according to IMS. Brazil's pharmaceutical market was valued at $29.9 billion in 2011 and is expected to reach between $42 billion and $52 billion by 2016, representing a CAGR of 12% to 15% from 2012-2016. Russia's pharmaceutical market was valued at $15.7 billion in 2011 and is forecast to be between $23 billion and$33 billion by 2016, representing a CAGR of 10% to 13% from 2012-2016. And India's pharmaceutical market was valued at $14.3 billion in 2011 and is expected to reach between $24 billion and $34 billion by 2016, representing a CAGR of 14% to 17%, according to IMS.

Based on these projections, China will move into second place in the global pharmaceutical market by 2016, surpassed only by the United States, which will continue to hold the number one position on a global basis, according to IMS. Brazil will move into fourth place, India into eighth place, and Russia into ninth. Among developed markets, Japan will drop from the second largest global market to the third by 2016. Germany and France will each drop a notch, from fourth and fifth, respectively, in the global rankings in 2011, to fifth and sixth in 2016 as projected by IMS. Italy will stay in seventh spot in 2016, the same position it occupied in 2011. The developed markets of Spain, Canada, and the United Kingdom, respectively ranked as eighth, ninth, and tenth in 2011, will be eclipsed by Russia and India in the global rankings by 2016, according to IMS projections.

Company activity

China. The pharmaceutical majors are pursuing direct investment in R&D and manufacturing as well as partnership strategies in emerging markets (1-2). Some recent investment in China by the pharmaceutical majors includes Hisun-Pfizer Pharmaceuticals, a joint venture formed between Pfizer and the Chinese pharmaceutical company Zhejiang Hisun Pharmaceuticals with the aim to develop, manufacture, and commercialize off-patent pharmaceutical products in China and other markets. In May 2012, Sanofi inaugurated a new assembling and packaging line for producing its prefilled insulin injection pen Lantus SoloStar at its facility in Beijing. The company announced a second phase $90-million project to install a cartridge aseptic product line at the facility.

Novartis has been actively building its position in China. In 2007, Novartis opened a start-up facility for a new R&D center in Shanghai, China, and broke ground in 2008 on Phase I of a new facility that was originally to be home to approximately 400 R&D scientists and approximately 400 other pharmaceuticals division personnel. In 2009, it expanded the scope of the site with plans to invest $1 billion during the next five years to increase the size of its operations in Shanghai. Based on a re-evaluation of the site conducted in 2010, the current Phase 1 has been extended by two buildings. The cross-divisional Shanghai campus will house 800 offices and 400 laboratory workplaces

In 2012, Eli Lilly opened a new diabetes R&D center in Shanghai. The center employs 150 scientists and staff hired primarily from China. Eli Lilly also is constructing a new insulin production, packaging, and warehouse facility in Suzhou, China, which was schedule to open in late 2012. In June 2012, Eli Lilly announced an expansion of its manufacturing capabilities in China through an expanded collaboration with Novast Laboratories, a generic-drug and specialty pharmaceutical company based in Nantong, China. The collaboration will enhance Lilly's efforts to build a portfolio of Lilly branded generic medicines in China, and eventually may be used to provide regional manufacturing support for Lilly's pipeline of products in development.

For Roche, a key project included transforming its manufacturing facility for solid dosage forms in Shanghai from a local to a global supply operation. In early 2011, the facility received FDA and EMA approvals to produce Xeloda (capecitabine) for the US and EU markets.


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.
27%
Oversee medical treatment of patients in the US.
14%
Provide treatment for patients globally.
8%
All of the above.
41%
No government involvement in patient treatment or drug development.
11%
Jim Miller Outsourcing Outlook Jim MillerCMO Industry Thins Out
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerFluorination Remains Key Challenge in API Synthesis
Marilyn E. Morris Guest EditorialMarilyn E. MorrisBolstering Graduate Education and Research Programs
Jill Wechsler Regulatory Watch Jill Wechsler Biopharma Manufacturers Respond to Ebola Crisis
Sean Milmo European Regulatory WatchSean MilmoHarmonizing Marketing Approval of Generic Drugs in Europe
FDA Reorganization to Promote Drug Quality
FDA Readies Quality Metrics Measures
New FDA Team to Spur Modern Drug Manufacturing
From Generics to Supergenerics
CMOs and the Track-and-Trace Race: Are You Engaged Yet?
Source: Pharmaceutical Technology,
Click here