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home > pmps > winter 2003 > vertical and horizontal integration offers supplier partnerships in drug development and manufacturing
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Pharmaceutical Manufacturing and Packing Sourcer

Vertical and Horizontal Integration Offers Supplier Partnerships in Drug Development and Manufacturing

Pharmaceutical drug development is highly competitive - for the successful companies it can mean billion dollar revenues when a drug hits the market; for the unsuccessful, particularly smaller biotechs with limited pipelines, it can herald complete business failure. Thus pharma companies are looking for every advantage they can gain to shorten timelines, add innovation and drive down costs. This presents a market opportunity to suppliers of this industry, to develop products and services that can really add an edge. The pharma supply industry is in transition from smaller niche players with limited catalogue products, to true partners that provide a single source of supply.

In order to provide the true partnership that industry demands, pharma supply companies must integrate horizontally - by in-house investment and by acquisition to develop the widest possible product offering. The supply company must also develop vertically - to offer 'just in time' product delivery from sophisticated logistics management and distribution, through to high quality manufacturing, not only of in-house products, but also on a bespoke basis to support customers' specific needs as products move up the development chain.


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By Gerrit van den Dool, Vice President Europe at Sigma-Aldrich Inc

Gerrit van den Dool joined Sigma-Aldrich in 1999 after holding various sales and marketing positions in the life science industry. Since the end of 2002 he has been the Vice President of Sales and Operations in Europe, aligning the company's efforts to improve its customer service.

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Gerrit van den Dool
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