Costs structures of companies in the pharmaceuticals industry


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Examining the costs structures of companies in the pharmaceuticals industry, there are significant differences between, say, a globally active, research-heavy organisation (approx. 30% of overall costs stemming from product manufacturing), a maker of generics (product manufacture costs at 50%), and a pure-breed supplier (approx. 60%). (See fig. 1)


Breaking down these manufacturing costs, the principle items on average are materials (approx. 44%), staffing (approx. 25%), and machinery, property, and facilities (approx.. 15%). (See fig. 2)
Previous benchmark studies for reference production sites have shown an average potential for 16% of savings, with the greatest differences being calculated for quality assurance (QA) / quality control (QC), maintenance, machinery use, and high productivity. (See fig. 3)


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