In particular, how can companies address the two main issues of the increasing cost of medicine supply, and the need for new solutions and innovations for unmet medical needs?
MV. Cost of pharmaceutical manufacturing will have to come down. Ensuring that the best technology is used to make your products has to be given a high priority. In addition, the industry will have to address its significant over-capacity resulting from the past strategy to make products in-house. This will no doubt meet resistance as this is a painful process but certainly not new to most other industries. The cash that is freed up will allow increased R&D spending into innovation for real unmet needs. Collaboration with contract manufacturing partners becomes part of the supply strategy. The supply chain is another costly factor for the pharma industry and increased use of new alternatives (such as internet pharmacies, use of existing retail channels and OTCs) is required, including reduction of working capital. Innovation can greatly benefit from increased operational efficiency. Many companies are taking action and savings in CMC and clinical development can reach 30 percent or mor
