Many pharmaceutical companies look at cost controls as a means of bolstering their bottom line in the face of increasing competition and external pressures to reduce the price of medications. Yet many struggle to identify and implement significantsavings. CECON consultant 1569, specializing in the formulation, manufacturing, packaging, and dosage development of pharmaceuticals , lays out the top five reasons why. Next week, in Part 2 of this series, we’ll provide a personal example of leading a pharma company to significant cost savings.
- Reluctance to make changes that might create risk
Pharmaceuticals is a highly regulated industry that requires companies to use approved grades of raw materials and components in processes which must be validated and employ qualified equipment systems and facilities. Additionally, raw materials, components, intermediates, and finished products must be analyzed and released using sophisticated, qualified instrumentation and validated methods. It takes years and millions of dollars to conduct the studies necessary to establish these levels of control before a company is authorized to sell a product. Consequently, companies are reluctant to make changes that might risk the quality and commercial availability of their products.