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Pharmaceutical Manufacturing and Packing Sourcer

Editor's Letter

The last 12 months have been something of a roller-coaster ride, with some big 'downs' and a few small 'ups'. Just now, we are in a tunnel waiting to find out what lies ahead. Overshadowing the economic climate post September 11th, there have been spectacular crashes like that of Enron Corp., largely due to voodoo accounting practices. Events such as these are a healthy reminder that leveraging earnings to achieve growth also increases risk. So far, the pharmaceutical industry has seemed immune from similar troubles, while the big merger of Pharmacia and Pfizer looks set to create the first mega-pharma company. M&A deals are pharma's attempt to regain shareholder value. However, the news is grim for employment prospects as the industry braces itself for yet more job losses in the wake of post-merger restructuring.


Earlier in the year, analysts predicted improved prospects for manufacturing which could have helped the production sector in pharma and biotech. Outsourced pharmaceutical manufacturing has proved remarkably resilient. It's as well that the industry has the support of a robust infrastructure enabling it to deliver quality products at costs that are lower than that of in-house manufacturing - as long as similar accounting standards are used to compare them. Is this golden scenario about to change to base metal, to match the leaden skies?


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By Dr Patricia Lobo, Rebecca Caval˘t
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Dr Patricia Lobo
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Rebecca Caval˘t
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