Business Case |
Key issues |
Solution |
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Life extension with new delivery form
A mature OTC brand is identified as a key revenue source - if a new Asia-Pacific line extension can be introduced to the market within the next 12-18 months.
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No line extensions available
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Approval and coordination with headquarters required to develop and introduce a new product
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Speed |
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In close coordination with Pharma Industries, a new delivery form is developed. Pharma Industries' existing relationship with its corporate regulatory staff, in addition to its proprietary knowledge, are the keys to bringing a new product to market within 12 months, and expanding regionally within 18 months.
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Outsourcing the procurement of materials
Due to historical reasons, a pharmaceutical company uses several local contract manufacturers for mostly old, price-sensitive products while maintaining its own logistics department to purchase materials and coordinate its CM's.
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Duplication of efforts |
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Focus on core capability |
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Purchasing power |
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Cost |
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Pharma Industries is able to submit a comprehensive and competitive proposal including the procurement of materials that will generate savings in back-office functions, material purchasing and manufacturing costs.
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Critical supply chain information
Sales are suffering as locally manufactured products are out of stock. It is unclear what is the cause of this situation and blame is shifted between the distributor, manufacturer and the pharmaceutical company.
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Transparency |
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Information flow |
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Availability of raw and finished materials |
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Our internet platform www.zip-online.com provides detailed information on the status of production, the availability of raw materials, service levels, email alerts and more. This information is updated daily. In this case, a lack of raw materials was the main issue.
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Extending the life-cycle of old products
The merger of two pharmaceutical companies results in closures of plants across the world. There is some uncertainty over the possibility that older products may be discontinued.
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Old products are revenue and profit drivers in many countries in Asia |
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Increase in costs, minimum order quantities and lead-times |
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The merger was used as a catalyst to shift control over older products to the region. An agreement with Pharma Industries was negotiated to consolidate material sourcing and production into one plant, supplying all of Southeast Asia (except Indonesia).
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Solving multiple packaging requirements
A pharmaceutical company requires specific packages to supply small markets in Indochina. Repackaging is considered but critical concerns include quality control and additional costs.
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Small runs |
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GMP requirement |
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Cost |
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Speed |
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Discussions with Pharma Industries in Vietnam result in a proposed solution to ship bulk tablets to Vietnam, repack, and then re-export to destination countries. No local registration is required, no duty & VAT. Plus, labor costs are low.
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Continuous improvement in quality standards
Partially as a result of increasing pressure from the US FDA, GMP compliance of locally-manufactured products is under scrutiny. An upcoming visit by a new team of corporate auditors could result in the discontinuation of local production and affect revenue and profits.
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cGMP compliance |
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FDA Part 11 |
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US and European standards |
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Investments into new equipment and processes increase the GMP level. The audit identified several issues, which are promptly addressed, and production continues. We are confident that cGMP compliance will be achieved.
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