Defying deficiencies - A CMO story

Today pharmaceutical business has become competitive as never before. Block buster patent expirations, row of expected patent expiries and revoking of patents have all paved way to entry of generics, thus intensifying the competition. Pipeline of big pharma companies are looking dried up, with not many new drugs to be out in the market, thus their premium pricing for their drugs are hit. To sustain and maintain their profitability, they need to be competitive enough. How can they become competitive enough? ? Outsourcing, is one of the main solutions for them. But, whom do they outsource to? ? Emerging market suppliers in India and China or to suppliers in Western countries. If they are outsourcing to suppliers in western countries, then there is very less expected cost savings. If they are outsourcing to India or China, huge cost savings opportunity exists, but can these players overcome their current problems and meet the requirement of the big pharma companies. To outplay Chinese players, Indian suppliers need to overcome several hurdles to meet the standards of big pharma companies