OUTSOURCING IN PHARMACEUTICAL INDUSTRY

Group 1
Aman Tayal
Rohini GS
Srikanth
 CORE COMPETENCY
 For any organization, core competency refers to the capabilities, knowledge, skills and resources that constitute its "defining
strength." 
 A company's core competency is distinct, and therefore not easily replicated by other organizations, whether they're existing
competitors or new entrants into its market. 
 Core competency must have the following three qualities:
 Enhance consumer benefits 
 Be competitively distinctive and hard to be duplicated by rivals
 Must be access to provide broader market 

 Core competencies are linked with quality, cost, cycle time, logistics and business productivity.
 For most Big Pharma companies, it is really hard to identify what their core competencies might be. A few might still believe
their core competency is development research and regulatory know-how or sales and marketing. Some might suggest or claim
specific therapeutic area focus or disease target expertise. For others, it could be acquisition prowess.
PHARMACEUTICA
L
MANUFACTURING
MARKET SIZE

The global pharmaceutical

manufacturing market size was
accounted at US$ 357.9 billion in
2020 and is predicted to worth
around US$ 1,190.16 billion by
2030, poised to grow at a
noteworthy CAGR of 12.8%
during the forecast period 2021 to
2030.
 OUTSOURCING

Outsourcing is the business practice of

hiring a party outside a company to
perform services or create goods that
were traditionally performed in-house
by the company's own employees and
staff.
Outsourcing, which began to allow
better resource utilization to increase
productivity, has developed into a
strategy for achieving wider benefits,
such as overcoming trade barriers and
gaining entry into foreign markets, or
gaining access to new technology, with
reduced investment cost
TYPES OF OUTSOURCING

Contract Contract
In silico Logistics Contract Sales
Research Manufacturing
Research Provider Outsourcing
Outsourcing Outsourcing
 BENEFITS OF
CONTRACT
MANUFACTURING
TRENDS IN PHARMA
OUTSOURCING
MARKET
CHALLENGES
In contract manufacturing, as
the production takes place
outside the company’s
facilities, the chances for the
company to consistently
monitor the product quality
are less. There, it may impact
the quality of the product.
Product Quality
Poor communication is
another significant and most
common problem in contract
manufacturing. Most of the
times, there exists a huge
communication gap between
the parties involved in the
contract manufacturing.
Communication
A company has to share the
complete details of its patent-
product with the contract
manufacturer in order to allow
it to manufacture the product.
It involves the risk of using
knowledge in an unlawful
manner and duplicating the
products.
IP Risks
Compliance to all the
regulations is very important
in the manufacturing industry.
A third-party firm that is
actually manufacturing the
products may not be aware of
all the regulatory compliances
which must be followed.
Regulatory Compliance
 IMPACT OF SUPPLY CHAIN OUTSOURCING ON
PHARMACEUTICAL INDUSTRY POST COVID

 During covid localization aided many pharmaceutical companies during covid to eradicate Vaccine Supply chain issue.
 Many companies had tied up with local companies for the manufacturing process and that made vaccine supply chain
resilient.
 This made many companies to produce smart localization (hub and spoke approach)
 The “hub-and-spoke” concept is a cost-efficient model for localizing manufacturing (either end-to-end or in part) in a
specific country.
 The hub-and-spoke approach will increase supply chain agility without incurring the expenditure needed for a full-
scale local site.
 ARE STRATEGIC PARTNERSHIPS THE WINNING MODEL?

 Through the last two years of the COVID-19 pandemic, a mainstay of the drug development community’s
response has been collaboration. We have seen it in a variety of forms, including between Big Pharma and smaller
companies, such as the Pfizer/BioNTech collaboration which led to the Comirnaty® messenger RNA (mRNA)
vaccine for COVID-19.
 Using survey data, the research identified that 25 percent of outsourced projects are contracted to transactional
service providers, 50 percent are conducted with preferred providers and the remaining 25 percent are managed
through strategic partnerships.
THANK
YOU