Monday, December 01, 2008

Pharmaceutical Supply Chains Reshaped As Industry Undergoes Changes

Pharmaceutical Supply Chains Reshaped As Industry Undergoes Changes.

IndustryWeek (12/1, Jusko) reports that, "as multiple forces challenge the pharmaceutical industry, supply chains" are getting "a new look." Paul Papas, partner and Americas Life Sciences leader, IBM Global Business Services, points out that "high levels of patent expiration among pharmaceutical companies are impacting their top-line growth, which is then driving a whole series of additional events." Among these events are "more mergers and acquisitions to augment the product pipeline, changes to fundamental operating models, increasing globalization and a growing emphasis on partnering. Additionally, 'if the top line isn't growing, it makes sense to try to rationalize your cost basis to deliver your bottom line,'" Papas explained. "Add to that changing compliance demands in sales and marketing, manufacturing, and research and development, as well as a shifting client base, and really, pharmaceutical manufacturers -- and the supply chains in which they operate -- have little choice except to change and adapt to the volatile environment in which they operate."