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Pharmaceutical Supply Chains Are Due for a Radical Overhaul Says PwC
Date:2/21/2011

NEW YORK, Feb. 21, 2011 /PRNewswire/ -- While recent attention has focused on issues such as the challenges associated with drug discovery and the regulatory review process, pharmaceutical companies have invested comparatively little effort in updating their manufacturing and distribution operations, many of which are inefficient, under-utilized and ill-equipped to cope with new medicines, cost pressures and health reform expectations, according to the latest report in the Pharma 2020 series, Supplying the Future: Which path will you take?, released today by PwC US.

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Representing a significant amount of the cost base of most bio-pharmaceutical companies, the supply chain is the link between the laboratory and the marketplace and includes everything from sourcing raw materials to manufacturing and packaging to inventory warehousing, transportation and distribution.  As demand grows for more customized products and services -- and as the nature of those products and services becomes more complex -- the next generation pharmaceutical supply chains will become an increasingly important source of differentiation for makers of medicines, and will be a more prominent part in the strategic thinking of industry leaders, according to PwC.

In the report, PwC outlines six trends that will fundamentally change the way pharmaceutical companies make and distribute their products.

  1. Health reform shifts emphasis from product features to patient outcomes: The government's emphasis on health outcomes as a basis for payments will require pharmaceutical companies to not only
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SOURCE PwC
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