Exploring Outsourcing Options.
As part of a strategic programme, PharmaCo intended to assess the market of a product portfolio and optimise manufacturing costs. In a first phase, Larka delivered an exhaustive market assessment covering the 17 products compounding its portfolio which generated billion-euro of revenue - read more about our Business Intelligence Services ⇀
The second part of this strategic programme consisted in supporting PharmaCo in optimization of its manufacturing cost. APIs were supplied by external third parties while all FDFs were manufactured in-house. Outsourcing the FDF manufacture was therefore identified as a key cost optimisation leverage.
To do so, PharmaCo requested Larka to launch a worldwide RFQ process for FDF manufacturing of its 17 molecules whose products could vary from 1 to 12 different dosage forms and dosage strengths.
- Based in Western Europe
- Big Pharma, multibillion-EUR revenue
- Over 10,000 eployees
Larka's Scope Of Intervention
Larka's project management team covered the following tasks:
- Preliminary Preparation
- Project & requirements analysis
- Review and comprehension of manufacturing process for all the 17 molecules
- Classification of each product per dosage form, health certification, special containment and volume to pool CDMOs' profiles
- RFQ drafting
- CDMO Identification & Qualification
- Preliminary screening - approx. 410 CDMOs selected for the whole project
- Systematic approach of each CDMO
- CDMO qualification based on information shared by executive
- Preliminary list of suitable CDMOs and validation
- Data Collection & Analysis
- CDAs process management
- RFQs process management
- Double-check of prices and info shared into RFQs collected
- Questions/Answers round with CDMOs
- CDMO logistic capacities assessment
- Shortlisting of CDMOs
- Data consolidation & final report drafting including
- Mission overview - methodology, number of CDMOs approached, etc.
- Detailed profiles of potential partners - legal status, headcount, turnover, POC, plant location, certifications, capabilities & capacities, special manufacturing or containment capabilities, future CAPEX, etc.
- Quotation comparisonmMatrix
- Larka comments and recommendations
This RFQs process management went on for 11 months, involved 410 CDMOs for more than 150 RFQs collected and analysed.
The global output of this strategic programme enabled PharmaCo to take the following decisions:
- Halting for good the commercialization of one molecule - weak commercial potential, high competitiveness and no significant leverage identified to decrease manufacturing cost
- Outsourcing the FDF manufacturing of 8 molecules
Excluding the abandoned molecule, the reorganisation of the DP manufacturing structure allowed PharmaCo to decrease its manufacturing cost by 12.7%.
Additionally, PharmaCo decided to collaborate with Larka’s experts to optimize the DP manufacturing process of its 9 products kept in-house – read more about our Technical Operations solutions ⇀