The pharmaceutical companies are constantly revising their business strategy to address multiple challenges faced by them and to compete in the dynamic pharmaceutical market. Some strategies that companies have adopted are in-licensing, out-sourcing, improving pipeline, reducing cost of drug discovery, development, manufacturing sales and marketing.
In addition to outsourcing other non-core business functions, companies are outsourcing their manufacturing operations ("Contract Manufacturing") as part of their "virtual" operations model. This approach provides them an efficient and flexible model, without making any large capital investments. This also allows companies to invest and focus on their resources on their core competencies to generate more value. This paper discusses various approaches that drive the depth and breadth of contract manufacturing in a pharmaceutical company and how to adopt the "right" outsourcing model for the company.
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