Focusing on the keys to success for contract drug manufacturers, Arnaud Sergent, Serge Hovsepian (partners), Nohmie Ben Rekassa (principal) and Ben Faircloth (partner) from L.E.K. Consulting detail the differentiation strategies that have proven themselves in the marketplace and provide a roadmap for investors.
Winning formula
Pharmaceutical companies are increasingly outsourcing ‘non-core’ activities to cut costs and focus their energy, capital and management on sales, research and marketing, the two activities considered key for their value chain. The volume of worldwide outsourcing has almost doubled since 2006, bringing significant growth opportunities for contract manufacturing organizations (CMOs) and attracting substantial investment.