Executive Summary
Chapter 1: Key Issues Facing the Pharmaceutical Industry
Structure of the industry
Global product portfolio
Pressures
Structure
Customers
Market exclusivity
Price and operating margins
The need to change the way the industry works
Shorter development times
Focus on key customer areas
Improve collaboration between functions
Learn from other industries
Historical development of manufacturing
1960s and 1970s
1980s
1990s and 2000s
Conclusion
Chapter 2: Pharmaceutical Manufacturing versus Sales Worldwide, in Europe and in Japan
World market
Western Europe
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Greece
Ireland
Italy
The Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
The UK
Japan
Chapter 3: Pharmaceutical Manufacturing versus Sales in Central and Eastern Europe
Armenia
Georgia
Kazakhstan
Russia
Turkey
Ukraine
Chapter 4: Pharmaceutical Manufacturing versus Sales in the Americas
North America
Canada
The US
Latin America
Argentina
Brazil
Central America and the Dominican Republic
Chile
Colombia
Mexico
Peru
Puerto Rico
Venezuela
Chapter 5: Pharmaceutical Manufacturing versus Sales in the Rest of the World
Africa
Morocco
Nigeria
South Africa
Zimbabwe
Australasia
Australia
New Zealand
Far East
China
Singapore
India
Middle East
Saudi Arabia
Egypt
Jordan
Chapter 6: Strategic Options for Pharmaceutical Manufacture
In-house manufacture
Global or strategic sites
Regional sites
Local sites
The best approach
Partnerships
Joint ventures
Contracting out
Outsourcing
Licensing out
Selling off the product
Selling off the company
Acquisitions
Strategic options for companies in emerging markets
Internal resourcing
External resourcing
Collaboration with the multinationals
Acquisition by the multinationals
Facility for rent
Conclusion
Chapter 7: The Impact of e-Business on the Pharmaceutical Industry
Product registration
Manufacturing information sources
Purchasing
Documentation control
Sales and marketing
Electronic communities
Conclusion
Chapter 8: Outsourcing Pharmaceutical Manufacturing
Why outsource?
Financial reasons
Timing reasons
Resource reasons
Organisational reasons
Outsourcing providers (the contract takers)
Prerequisites for successful outsourcing
The outsourcing provider
The outsourcing user
The contract
Researching the outsourcing market
Outsourcing market
Research targets
Levels of outsourcing
Why outsource?
Choosing a contract acceptor
Conclusion
Chapter 9: Key Issues Facing Pharmaceutical Manufacturing
Drivers for manufacturing strategy
Current manufacturing base
Product portfolio
Capacity
Registrations
Source of raw materials and packaging materials
Internal factors
Quality of the product
Cost of goods
Timeliness of supply
Quality of incoming materials
Productivity
Yield
Sales forecasts
Relationship with R&D and marketing
Technology
Available personnel
Formulations
Level of decision making
Summary
Economic factors
Cost of manufacture
Cost of transport
Capital expenditure
Running costs
Closing plants
Tax advantages
Economies of scale versus flexibility
Exit costs versus re-entry costs
Political factors
Stability of the country
Influence on prices
Influence on product licences
Trade barriers
Geographical factors
Demography - portfolio versus the marketplace
Importance of the market
Regional groupings
Regulatory factors
Climate
Environmental issues
Disaster management
Biotechnology manufacturing
Lack of capacity
Lack of awareness
Lack of investment
Conclusion
Chapter 10: Quality Management in Pharmaceutical Manufacturing
Quality assurance
Good manufacturing practice
Defined processes
Validated processes
Suitable facilities
Clear instructions/procedures
Trained operators
Full and accurate records
Batch traceability
Quality maintained during distribution
Complaints procedure
Recall procedure
Quality control
Electronic records and electronic signatures
GMP for starting materials
GMP guidelines and enforcement around the world
The US
Western Europe
Pacific Rim
Australia
Japan
Latin America
Central and Eastern Europe and the Former Soviet Union (FSU)
Central Asian Republics and the Caucasus
New EU Member States
Russia
Ukraine
Middle East and Africa
Israel
Jordan
Nigeria
Saudi Arabia
South Africa
Yemen
Zimbabwe
Asia
China
India
Singapore
The role of the World Health Organization
WHO codes and guidelines
GMP and the multinationals
Harmonisation of standards
PIC/S
Mutual recognition between the EU and North America
Mutual recognition between the EU and third countries
ICH
Regional harmonisation initiatives
PANDRH
COMESA
Other harmonisation programmes
Conclusion
Chapter 11: Certification of Factories to GMP Compliance
Determining the appropriate standard
Factory inspection - the Food and Drug
Administration (FDA) approach
Pre-approval inspections
Follow-up inspections
Routine inspections
WHO certification scheme
Training of inspectors
WHO prequalification scheme
ISO 9000
Quality Systems Inspection Technique
Conclusion
Chapter 12: Designing and Building a Manufacturing Facility
Obtaining the correct environmental standards
Classification systems
Product types, dosage forms and related technologies
General comments
Dry products
Tablets
Capsules
Powders
Environmental requirements
Semi-solid products
Ointments
Creams
Environmental requirements
Liquid products
Manufacture and filling
Environmental requirements
Sterile products
Environmental requirements
Methods of sterilisation
High-potency products
Antibiotics
Biopharmaceutical products
Packaging
Types of packaging
Batch identification
Environmental requirements
Other dosage forms and technologies
API manufacturing
Trends in facility design
Introduction
Horizontal flow
Vertical flow
Lights-out operation
Volume versus flexibility
Basic Minimum Standard versus Best Practice
Greenfield site development versus refurbishment
Getting the design right from the start
Conclusion
Chapter 13: Validation in Manufacturing
Definitions
Design qualification
Installation qualification
Operational qualification
Performance qualification
Process validation
Design qualification
Production of the URS
Validation master plan (VMP)
Project design brief
Family tree
Design qualification checklist
Formal DQ review
Installation qualification
Determining validation requirements
Carrying out and completing the IQ
Operational qualification
Determining validation requirements
Carrying out and completing OQ
Performance qualification
Performance testing
Health & safety review
Training records
Pilot production
Process validation
Retrospective validation
Cleaning validation
Analytical validation
Validation - a cost-benefit analysis
The cost of validation
The benefits of validation
Examples of the benefits of validation
Prospective validation of process equipment
Retrospective validation of a steriliser
Retrospective validation of cleaning validation
Conclusion
Chapter 14: The New Paradigm
Twenty-first-century pharmaceutical manufacturing
New terminology
Quality risk management (QRM)
Quality by design (QbD)
Design space
Process analytical technology (PAT)
Parametric release
Putting it all together
ICH and the 'New Paradigm'
ICH Q8 Pharmaceutical Development
ICH Q9 Quality Risk Management
ICH Q10 Pharmaceutical Quality System
Mandatory versus optional activities
Chapter 15: The Future for Pharmaceutical Manufacturing
Trends
Demography
Changing medical needs
Changing science and technology
Increasing cost pressures
Future of the multinationals
Reduction in excess capacity
Improvement in national quality standards
Harmonisation
Global GMP certificate
The shape of the manufacturing industry
Conclusion
Glossary
Bibliography and Sources
LIST OF FIGURES
Figure 12.1 Horizontal flow I
Figure 12.2 Horizontal flow II
Figure 12.3 Vertical flow
LIST OF TABLES
Table 1.1 Worldwide leading pharmaceutical companies
Table 1.2 Cumulative market share of 50 pharmaceutical companies, 1989, 1999 and 2007
Table 1.3 Leading therapy classes by global pharmaceutical sales, 2007
Table 1.4 Leading products by global pharmaceutical sales, 2007 (2001)
Table 1.5 The fall in market exclusivity over time
Table 1.6 R&D spend by the 10 leading companies, 2006
Table 2.1 World market growth, 2000-2007
Table 2.2 Global pharmaceutical sales by market, 2001
Table 2.3 Global pharmaceutical sales by market, 2007
Table 2.4 Top 10 markets for retail sales, March 2007-February 2008
Table 2.5 International pharmaceutical trade in Western Europe, 2006 ($bn)
Table 2.6 Austria - pharmaceutical trade balance ($bn)
Table 2.7 Domestic sales versus imports in France
Table 2.8 Domestic sales versus exports in France
Table 2.9 Changes in the size of the French market in recent years
Table 2.10 Changes in German pharmaceutical sales ($bn)
Table 2.11 Trade balance in pharmaceuticals, Greece ($bn)
Table 2.12 Changes in the Irish export market in recent years
Table 2.13 Trade balance in pharmaceuticals, the Netherlands ($bn)
Table 2.14 Changes in the Japanese share of the global market
Table 2.15 Changes in Japanese trade
Table 3.1 Estimated pharmaceutical market, Russia and FSU countries, 2004
Table 3.2 Pharmaceutical market, Kazakhstan ($m)
Table 3.3 Pharmaceutical market, Russia, 1997-2005
Table 3.4 Pharmaceutical market, Turkey, 1997-2007
Table 3.5 Ukrainian pharmaceutical suppliers
Table 4.1 Share of global pharmaceutical sales, North America
Table 4.2 The US market as a percentage of global pharmaceutical sales
Table 4.3 The Argentinean market by value and volume
Table 4.4 Argentinean trade in pharmaceuticals ($m)
Table 4.5 Argentinean production versus imports ($bn)
Table 5.1 Market growth, China, 1991-2007
Table 5.2 Market growth, selected markets, 2003-2007
Table 6.1 Advantages and disadvantages of options for pharmaceutical manufacturing
Table 9.1 Summary of key manufacturing issues facing pharmaceutical companies in general
Table 12.1 Facility construction costs in Western Europe
Table 12.2 Air classification system for the manufacture of sterile products
Table 12.3 Comparison of classes of environmental standards
Table 12.4 ISO 14644 Cleanrooms and Associated Controlled Environments
Table 12.5 Area classifications for sterile production
Table 12.6 Cost elements in a construction project
Table 12.7 Typical URS questionnaire
Table 13.1 Comparison of validation terminology
Table 13.2 Resource investment in validation
Table 13.3 Benefits of validation
Dr Kate McCormick, of Heathside Information Services Ltd, UK, is a manufacturing consultant with extensive strategic and operational management experience in the international pharmaceutical industry. Kate has 10 years of line management and 20 years of internal and external consulting experience, and has worked with multinationals, SMEs, non-governmental organisations and national drug regulatory authorities in more than 50 countries.
Kate is a published author, editor of GMP Review, European Education Advisor for ISPE and a regular speaker at international conferences. She gained a degree in biochemistry and a doctorate in microbiology, both at London University, together with a Masters in Business Administration from Cranfield University. She is registered as a senior GMP expert within the EU and is eligible to act as a QP under the terms of the EU directive.