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Advantages of a Pure-Play API Contract Manufacturer

Unlike many API Contract Manufacturing firms, Neuland is pure-play, meaning we do not compete against our clients in the generic formulations market. Differentiating ourselves this way enables us to offer many unique benefits to our customers. Equally as important, however, it removes a major stumbling block in the relationship between the contract firm and client.

Growth in the Age of Contracting

There’s something of a rule governing most of corporate pharma these days: To Grow, Keep That at Which You’re Best, and Shed the Rest. High infrastructure costs and specific niche expertise alone make outsourcing, partnering and alliances today’s clear-cut paths to growth.

There’s a big difference, however, between outsourcing a non-core function such as manufacturing and actually ceding future market share to tomorrow’s competitor.

We’ve watched other pharma contract manufacturers forge deep into the Generics market over the years – producing their customer’s product while competing against them with an identical product formulation – and it still feels as though it pulls against the client relationship – working 180 degrees contrary to the relationship. Who wins in such a situation? And whose product is the contract firm’s priority?

The Number One Rule: Don’t Compete Against the Customer.

The most obvious benefit of a pure-play API manufacturer is that there is absolutely no element of competition with the customer. This also eliminates the possibility of any conflict of interest that could arise when working with other CMOs that are not pure-play.

I.P. – a Key Component of Strategic Pharma Outsourcing

A big advantage of pure-play API manufacturing is that we can take advantage of platform technology. We frequently use it to synthesize a variety of molecules to meet different market needs based on the platform and processes we have developed. Platform technology helps us complete our customer’s synthesis within the timeframe required.

In a previous post (Intellectual Property Management Group Focuses on API Innovation and Differentiation for Customers), we discussed how maintaining a strong, focused intellectual property (IP) portfolio is a key element of our long-term strategy – and an asset to our customers. We employ stringent freedom-to-operate standards that enable us to manufacture products without infringing on existing property rights.

Process Improvement Focus
Another clear benefit of being a pure-play API manufacturer is our ability to constantly improve yields and continuously work on synthetic routes to reduce the cost of APIs. As a pure-play API company, Neuland is highly-focused on continually improving our processes to get an edge on the API front.  These efforts translate to providing our customers with a better value, by granting them access to the latest, most efficient, cutting-edge API technology.

An example of this is Salmeterol Xinafoate, the oral drug used to treat asthma and bronchospasms. During its manufacture, the particle size distribution is specific to the metered-dose device.

From a regulatory perspective, the regulatory risk presented by an API company can be lower than that of a forward-integrated player. This reduced risk is the result of increased control and greater uniformity across multiple sites.

Likewise, because of the nature of the work performed by a pure-play API manufacturer, even the financial risk it carries is lower because of the lower risk profile of its business. In turn, this lower risk profile ensures greater business continuity. Having a three decade-long track record in the API synthesis industry helps to prove this point.

Better Integration and Communication with the Client
Finally, being pure-play allows us to work more closely with customers, fine-tune strategies, improve data-sharing and access, and customize the solutions proposed – especially where technology poses a challenge.

Learn more about Neuland Labs and how we maintain an exclusive focus on our clients’ success.

 

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