Services to CDMOs

Contract Manufacturing Business Diagnosis

Contract Manufacturing Business Growth Plan

Pricing Strategy

Request For Quotation (RFQ) management

Tools

Business Development Support

Profitability Improvement

Monitoring and Reporting

Contract Manufacturing Business Diagnosis

We often question ourselves if what we do is the right thing and if we are doing it in the right way. This is truth especially when the results are not as we would expect and/or when we see challenges and risks coming ahead.

Answers to these questions are given and actions are taken based on our knowledge of the business and experience in the market.

An analysis of what and how we are doing things as well as a diagnosis of what works well and what needs to me improved / modified in order to reach our targets, performed by industry experts, would provide the right answers to the above questions and could reveal issues and malfunctions that we have not think of.

We support you by providing:

  • Customized Competition Outlook per Technology
  • SWOT Analysis
  • Comparison with market best practices in all areas
  • Product cost benchmarking
  • Product Price benchmarking
  • What works well and what needs to be improved
  • What changes need to be implemented in each area / process
  • Comprehensive solutions to all identified issues
  • Customized tools and processes
  • Detailed guidelines of how changes should be implemented

Contract Manufacturing Business Growth Plan

Understanding the growth potentiality of your CDMO business is the first milestone for defining the company’s directions. A suitable, comprehensive and convincing strategy is an asset towards internal and external audience

We support you by delivering:

  • What your CDMO business could achieve in Revenue and EBITDA taking into account available services / technologies and separately what could be achieved by expanding to additional services / technologies close to the current ones.
  • What the business evolution could be for the next 3 to 5 years in Revenue and EBITDA
  • What segments, customers and products to be targeted
  • Service offering enlargement that adds value to existing capabilities
  • Detailed Roadmap with timelines of how this could be achieved, in terms of
    • Business model
    • Pricing Policy
    • Focused Selling
    • Current organization additions / changes
    • Tools needed

Pricing Strategy

Price is probably the most decisive factor for the Pharma companies when selecting a CDMO, assuming that quality is up to desirable standards. Price directly affects the CDMO new business success rate especially for traditional technologies. On the other hand the “right” Price is of utmost importance for the CDMO future sustainability

Efficient Pricing needs to take into consideration:

  • Product related parameters: specific product technology and therapeutic area
  • Cost related parameters: manufacturing cost and available capacity
  • Customer related parameters: what the customer is willing to pay for the specific product
  • Competition parameters: what competition in the broader region is offering

Request For Quotation (RFQ) management

Organic growth requires the CDMO to participate in a considerable number of RFQs. Additionally, acquiring new business is mandatory just to compensate for the volume erosion of the mature products year after year.

Since any new business passes first through the quotation process, this has to be designed in a way that allows efficient involvement of all related departments, realistic anticipation of the cost, case risk management and at the same time to be kept short so as to be considered as a competitive advantage

We can support you by developing and implementing:

  • An efficient and standardized RFQ process involving all related company departments that provides on time the necessary information for facilitating managerial decisions regarding the offer to be provided to the customer that allows the highest possible margin and at the same time increases the probability having the offer accepted.
  • RFQ Tool in a user-friendly format, managing all RFQ parameters/aspects (cost, investment, cost of capital, indicative price) in one file that includes all quotation assumptions and provides in an automated way Business Case summary (for decision making) and easy monitoring and reporting of Business Development results.

Other Tools

Apart of establishing appropriate strategy, implementing efficient processes and appointing the right people, establishing the appropriate tools is of equal importance

Efficient tools are usually customized to company’s business model and specific processes

Tools facilitating smooth operation should be established in almost all areas and help in performing the tasks easier and more automated, ensuring  process alignment with established strategy, monitoring progress (who, what, by when), providing statistical data that facilitate decisions, future adjustments and changes.

Business Development Support

Even for businesses being less in growth mode but more in stability mode, acquiring profitable new business is of utmost importance for replenishing the top line gap coming from reduction in product sales, product discontinuations, customer insourcing activity, etc.

Profitable Organic Growth is mainly achieved by excellence in managing customers and by identifying suitable new business.

Profitability Improvement

Continuous monitoring of profitability of manufactured products and necessary adjustments of cost and price structure is mandatory for having healthy and sustainable business continuity.

We can support you in the following fields:

Recharges

Process and relevant tool for reflecting into price any product related cost increase driven by customers’ requests or unavoidable material cost increases

Product Performance Evaluation

Process for monitoring product profitability evolution to understand potential profitability issues and subsequent actions for bringing profitability to the desired levels

Price Elasticity Studies

Guidelines for better understanding the price elasticity of your current portfolio and how sensitive specific products are to price changes

Monitoring and Reporting

Strategies and tactics should be challenged in regular time intervals to ensure alignment to the targets

Monitoring activities, actions and results is mandatory for keeping your business under control and identifying early enough what works and what needs to be improved / modified / adjusted towards the target

Reporting of predefined KPIs of past activity but also forecasting expected future results is essential for keeping the organization aligned as well as for facilitating the appropriate managerial decisions

We can help you designing monitoring and reporting a number of activities like:

  • RFQ activity for recording new business evolution and identifying areas of potential improvements and modifications
  • Pipeline Value to define the future expected growth early enough and allow time for any necessary proactive adjustment
  • Profitability Improvement Impact to capture the foreseen benefit from the relevant actions
  • Dashboards for Top Management to review progress and improvements in one glance