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Biopharmaceutical contract manufacturing: contractor selection by market segment: when a biopharmaceutical company pursues an outsourcing strategy, the choice of a contractor is a critical and strategic decision.(OUTSOURCING: SELECTION CRITERIA)(Company overview)

Publication: Biopharm International
Publication Date: 01-APR-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
The market for biopharmaceutical contract manufacturing services continued to expand in 2007. For the year 2007, HighTech Business Decisions estimates year-to-year market growth of 14%-15%. Fueling the growth in the biopharmaceutical contract manufacturing market is the growth in biologics of...

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...throughout the product pipeline, and the increased use contract manufacturers by the pharmacuetical and biotechnology companies. As these pharmaceutical and biotechnology companies pursue their outsourcing strategies, the choice of a contractor becomes a critical and strategic decision.

In the latest report by High-Tech Business Decisions, Biopharmaceutical Contract Manufacturing: Quality, Capacities and Emerging Technologies, 41 biomanufacturing directors at pharmaceutical and biotechnology companies worldwide were surveyed regarding contractor selection. All respondents in the study said outsourcing is part of their production strategy. The directors discussed their criteria and the essential characteristics they look for when choosing a contractor.

Contractor Selection Criteria

In the study, the directors ranked the four most important characteristics that they seek in a contractor. Overall, the key criteria used to choose a contractor are a) the contract manufacturer's experience and reputation, b) price, c) customer service, and d) quality. These characteristics are a composite of all criteria mentioned, weighted by the directors' ranking of each criterion. While the macro view of the criteria for choosing a contractor provides a good overall view of the requirements needed by a contactor to win business, a deeper understanding of the specific needs of the market can be gained when the criteria are segmented by organization size. Therefore, for this analysis, the criteria for choosing a contractor are grouped by the size of the firm. We define a small firm as a biotechnology company with no manufacturing sites and a large firm as a biotechnology or pharmaceutical company with multiple manufacturing sites, that usually operates multiple international sites.

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Experience

For smaller firms, the...

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