Pharmaceutical value chain: opportunities for outsourcing

Volgina, N A; Анатольевна, Волгина Наталья

doi:10.22363/2313-2329-2021-29-1-150-163

Cited by 7 publications

(4 citation statements)

References 2 publications

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“…13 India Generic Drugs Market Analysis, Competition, Forecasts & Opportunities, 2018-2021& 2022-2028. URL: https://www.globenewswire.com/en/news-release/2022/08/05/2493154/28124/en/ India-Generic-Drugs-Market-Analysis-Competition-Forecasts- Opportunities-2018Opportunities- -2021Opportunities- -2022Opportunities- -2028Opportunities- .…”

Section: производство дженериковопыт индии россии и других странmentioning

confidence: 99%

Key problems of the foreign medicines contract production organization in developing countries

Chernikov

Zobov

Degtereva

2023

Vestn. Ross. univ. družby nar., Ser. Èkon.

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Contract manufacturing is gaining momentum in the pharmaceutical industry. Many pharmaceutical companies that do not have enough time and financial resources to build a fullfledged drug development chain transfer some or all phases of development and production to outsourcing. Today, many even large pharmaceutical companies transfer production to developing countries on a contract basis in order to reduce costs. However, despite a number of advantages of outsourcing, it is worth considering the rather significant barriers to the organization of contract manufacturing of medicines in developing countries. The article discusses the main difficulties in organizing contract manufacturing, primarily on examples from other science-intensive and capital-intensive industries. The study shows the similarity of the difficulties that arise when transferring this practice to the pharmaceutical industry. It is also emphasized that in the world of pharmaceuticals there is a growing trend towards the use of generic drugs. One of the undeniable advantages of their production is their economic availability compared to the originals, however, it imposes increased requirements on the contract manufacturer due to the importance of not deviating too far from the original recipe. The research revealed that countries such as China, India and Japan occupy significant shares of the pharmaceutical contract manufacturing market, including generics - primarily due to various combinations of low labor costs, capital and overhead costs (compared to the United States and Europe), tax incentives and, as a result, underestimated production costs. This circumstance is extremely important for the current situation in the pharmaceutical industry in Russia, which must simultaneously make up for the dropped import volumes of finished drugs, and at the same time speed up the stalled import substitution of a number of the most critical products. As a result and purpose of the study, it is possible to identify the identified barriers to speeding up the organization of pharmaceutical contract manufacturing of drugs necessary for the domestic market, to take them into account in the process of developing appropriate government measures.

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Section: производство дженериковопыт индии россии и других странmentioning

confidence: 99%

Key problems of the foreign medicines contract production organization in developing countries

Chernikov

Zobov

Degtereva

2023

Vestn. Ross. univ. družby nar., Ser. Èkon.

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“…In practice, pharmaceutical chains are very complex; they may include such stages as drug discovery and development; pre-clinical and clinical trials, new drug application; manufacturing, processing, and packaging/labelling; logistics and wholesale distribution, transportation, import-export operations, warehousing; marketing and retailing. The final configuration of a specific pharmaceutical chain is individualized and depends on the manufactured drug, the country of production and final consumption (Volgina, 2021).…”

Section: Foreign Pharmaceutical Companies In Various Links Of the Pha...mentioning

confidence: 99%

Business models of big pharma in Russia: A pharmaceutical value chain perspective

Volgina

2022

Vestn. Ross. univ. družby nar., Ser. Èkon.

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Large pharmaceutical companies (commonly referred to as Big Pharma) determine transformation trends in the global and national pharmaceutical market, make the largest investments in RD to create new original medicines, act as leaders in the processes of creating cross-border pharmaceutical value chains. In recent years, more and more Big Pharma companies penetrated the Russian pharmaceutical market. The purpose of this work is to identify the business models of Big Pharma companies in Russia from the point of view of their participation in a particular link of the pharmaceutical value chain, as well as to assess future trends. Based on the analysis of the collected information, we identify the following business models for Big Pharma companies: export model of supplying market; model of transferring RD links; production localization model at owned enterprises; model of contract manufacturing; model of participation in the links of wholesale distribution and retail. Foreign companies in Russian pharmaceutical market can use several models, and the more models are used, the deeper the company is integrated into the pharmaceutical chain. Such companies as Sanofi, Abbott, AstraZeneca, and Takeda are engaged in their own localized production and contract manufacturing, and they also exporting produced medicine abroad. So, they are the ones that are mostly involved in the pharmaceutical value chain in the Russian market. The transformation of business models of foreign pharmaceutical companies will be influenced by two interrelated factors: foreign strategy and geographic priorities of Big Pharma and the role of Russia in this strategy, which in turn is determined by the specifics of the Russian pharmaceutical market (compared to other countries).

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“…Based on the literature, the main reasons leading pharmaceutical companies to explore and implement outsourcing solutions in their companies (Nowacki, 2008;Dalal, 2010;Volgina, 2021). These are as follow:…”

Section: Analysis Of Financial Processes In the Pharmaceutical Indust...mentioning

confidence: 99%

Análisis y discusión de casos de estudio de externalización financiera en la industria farmacéutica

García¹,

Moya²,

Cuadrado³

2022

DyO

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Las empresas de muchos sectores en todo el mundo están experimentando una reducción generalizada de los beneficios, principalmente como consecuencia de una reducción de los márgenes operativos. Ante esta situación, las empresas han reaccionado y revisado, dentro de sus gastos estructurales, aquellos que podrían ser objeto de ajuste sin aparentes grandes impactos para las corporaciones. En este estudio se realiza un análisis de las razones que han llevado a las compañías de la industria farmacéutica a explorar modelos de externalización de algunos de los procesos financieros. Para llevar a cabo este diagnóstico de la situación de la externalización en el área financiera, se realizaron entrevistas a directores de la industria farmacéutica. De este estudio se puede inferir que cada compañía farmacéutica se encuentra en una situación distinta en la externalización, pero que en general se han utilizado los modelos sugeridos en la literatura. Por otro lado, en los casos estudiados, se ha podido inferir que las principales razones para llevar a cabo la externalización son comunes en todas las compañías, siendo la reducción de costes la principal razón, si bien, se ha confirmado que existen costes ocultos durante el proceso de implementación.

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Pharmaceutical value chain: opportunities for outsourcing

Cited by 7 publications

References 2 publications

Key problems of the foreign medicines contract production organization in developing countries

Key problems of the foreign medicines contract production organization in developing countries

Business models of big pharma in Russia: A pharmaceutical value chain perspective

Análisis y discusión de casos de estudio de externalización financiera en la industria farmacéutica

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