Abstract

THE BUSINESS OF CUSTOM PHARmaceutical chemical manufacturing has come into its own in recent years because many pharmaceutical companies are focusing their efforts on the research, development, and marketing of new drugs, leaving the unglamorous step of production to third-party chemical firms happy to do the job. Yet a handful of drug companies are bucking the trend. Not only do these firms continue to manufacture the bulk of their own products, they are successfully competing in the $8 billion-per-year contract manufacturing arena against the growing number of pure play chemical companies that want a slice of what for them is a high-margin market. Merck KGaA, Aventis, Pharmacia, Boehringer Ingelheim, Abbott Laboratories, Schering AG, and a few other drug-makers are active participants in the contract manufacturing market. Through an emphasis on quality manufacturing and regulatory expertise, they manage to overcome the perception that they are high-priced providers out merely to fill unused capacity i...

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