< PreviousFUNDING 30 Pharma Business International www.pbiforum.net medicines is “no longer fit for purpose”. It’s currently estimated that it takes an average of 13.5 years to take a new drug to a patient at a typical cost of over £1.2 billion. The challenge, the Medicines Discovery Catapult says, is to do this faster and cheaper without compromising patient safety, a mission it endeavours to accomplish by providing and applying new scientific systems, uses of data and methods of working. Charity organisations – such as the British Heart Foundation and Cancer Research UK – exist to raise money to fund research and medical breakthroughs. The latter, which is the largest independent funder of cancer research in Europe, allows organisations to apply for grants as well as enabling researchers to involve patients in their studies. It funds a broad portfolio of investigator-led research – from individual projects and fellowships, to large-scale team science programmes, multidisciplinary collaborations and international consortia. While there’s grant funding, the charity also makes long-term investments in state-of-the-art facilities and resources. Of course, much of the funding that charity organisations can provide to industry, academia and other organisations comes from the public. Direct donations – whether online or in collections in stores or on the streets – are part of this, but so is campaigns such as coffee mornings, sponsored walks or runs and a myriad of other approaches. When fundraising campaigns capture the public interest and go viral online, they really do have the power to bankroll important research and help change lives. Readers will no doubt recall the now infamous ‘Ice Bucket Challenge’ from the summer of 2014. In short, participants would tip a bucket of cold water over themselves to mimic the sensation of motor neurone disease and nominate others to follow. The campaign eventually raised $115 million which was used to fund several important research products. But public funding isn’t immune to the pricing and funding issues the plague the wider pharmaceutical industry. Last year, health campaigners called on the British government to make major changes to the way medicines are researched and developed. The calls followed the release of analysis exploring the cost of leading cancer drugs to the NHS. It showed that £458 million was spent in 2017/18 on paying pharmaceutical companies for medicines that had been developed with public funding. Released by Missing Medicines Coalition, the figures show that three of five of the most expensive cancer drugs to the NHS in 2017/18 – Trastuzumab, developed by Roche; Rituximab, also developed by Roche; and Pembrolizumab, developed by Merck – were developed from publicly-funded research. As a result, the public are paying twice for medicine, first in research and then again in high prices set by the pharmaceutical industry. In the specified year, NHS England spent a record £18.2 billion on medicines, a twenty-eight per cent rise since 2010. Clearly, something has to change. “Millions of people across the country run marathons, make donations or volunteer their time to help fight against cancer, and every penny counts. So why is the government letting big pharma charge such vast amounts for drugs where public funding has paid for research?” said Radhika Patel, a campaigner at Global Justice Now. Evidently, the Medicines Discovery Catapult is right – the old model needs updating. And just like the research and developments all the above help fund, innovation is needed. 28-31.qxp_Layout 1 09/06/2020 11:10 Page 3Pharma Business International 31 www.pbiforum.net © Shutterstock /Montri Thipsorn 28-31.qxp_Layout 1 09/06/2020 11:11 Page 4LOGISTICS 32 Pharma Business International www.pbiforum.net Transport remains one of the most costly and complicated parts of the supply chain for many in the pharmaceutical manufacturing industry, and is often scene as the go-to location for cutting costs, improving efficiency – or limiting environmental waste. Over the years however the industry has been squeezed so much, not only by companies looking to cut costs – but also ever- increasing costs of fuel and tax related to it. While more recent cuts in the cost of oil have had a beneficial effect on the industry, suppliers were quickly expected to pass those savings on to their customers. One of the big questions faced by many manufacturers in this situation – one of needing to transport fragile and strictly-regulated goods more often to meet quotas, is whether they should seek to increase their transport fleet – and all the costs associated with it, or whether they should look to invest in more facilities closer to the destination, usually in the form of warehouse or storage space. While the latter certainly sounds like the most efficient long-term option, it is by far the more costly one – which is a Transport is a go-to location for cutting costs, but how much further can the industry be stretched? A long road 32-35.qxp_Layout 1 09/06/2020 11:11 Page 1Pharma Business International 33 www.pbiforum.net LOGISTICS © Shutterstock /DoorZone direct result of the supply and demand for high quality warehouse space at this time. Simply put, there is not enough Grade A warehouse space to go around, and when companies are dealing with large quantities of pharmaceutical goods that need to be kept at a regulated temperature – there really is a necessity for the warehouse space to be of the highest quality. As the available space decreases, chances are the cost of rental will increase. And this only gets worse when we consider that consumer demand for goods is not likely to slow in coming years. In fact, with it being predicted that by 2050 the population of the world will top nine billion, with over 65% of that living in urban areas… well, the logistical nightmare is expected to get worse. The other option is to consider expanding transport fleets to accommodate for the increased demands, with more goods on the road at any given time to keep product in the retail stores and pharmacies fresh. While this will certainly avoid the issue of limited warehouse space, the long-term costs of such an arrangement may become untenable for many manufacturers. Expanding a fleet not only increases fuel and vehicle related costs – but also recruitment costs for drivers, wages and associated HR and 34 Á In fact, with it being predicted that by 2050 the population of the world will top nine billion, with over 65% of that living in urban areas… well, the logistical nightmare is expected to get worse. 32-35.qxp_Layout 1 09/06/2020 11:11 Page 2LOGISTICS 34 Pharma Business International www.pbiforum.net © Shutterstock /ESB Professional 32-35.qxp_Layout 1 09/06/2020 11:11 Page 3Pharma Business International 35 www.pbiforum.net LOGISTICS administration costs. There is also the issue of environmental impact and carbon waste created by a fleet. Because the only issue that can match consumer’s demands for fresher food – is that food and drink manufacturers should be doing all they can to reduce the impact on the environment, not contribute more to it. Many companies are seeking to combat the issue through a combined approach, both of improving the efficiency of their existing transport fleets – while also better utilising existing warehouse space. Intermodal transport is a popular method utilised predominantly in the US – but also in Europe as well. The guiding principle is to mix multiple forms of freight transport to achieve a net reduction in costs, be it energy or capital. The typical example would be to use rail to shift huge quantities of goods to a given warehouse closer to the final destination – before then having lorries ferry the goods the last distance into urban areas. While this can obviously save many thousands of road miles there is the issue of rail availability, especially in the UK. The reason why it is so prevalent in America is thanks to their abundance of flat land that is suitable for rail. UK rail systems are often not as well developed – and while that hasn’t stopped companies utilising rail for intermodal logistics, it does mean companies are somewhat limited in location. Being forced to settle warehouses where the rail links are strongest. Savings on warehouse space can be found in improving efficiency to increase the amount of product that can be stored in any given amount of space. Advanced racking solutions, combined with more robust supply chain systems enable companies to increase throughput while also cutting costs associated with lost time or product losses. As always, the trick is in finding out exactly how much is possible given space limitations – and adapting what can be used for a company’s products, be they palletised goods – or more individually stacked produce. Even beyond efficient storage however is the concept of efficient temperature control. With the vast majority of pharma products needing to be kept at specific temperatures there are obviously savings that can be made in doing so. After all it is more expensive to reduce the temperature of a storage facility, than it is to maintain it. Any losses in temperature due to breaches, poor worker attention to detail – or just old age, will result in costs that can soon spiral out of control. Little has changed in terms of the challenges the industry faces, but as it always has – the technology continues to adapt. Failure to keep in touch with these changes and take advantage of opportunities that present themselves may mean disaster for many. 32-35.qxp_Layout 1 09/06/2020 11:11 Page 4i- Pharma 5 – 7 August Park Inn by Radisson Hotel & Conference Centre London The annual i- Pharma conference and expo 2020 is the largest gathering of Pharma and Healthcare professionals in the UK and in Europe. i- Pharma UK is expecting hundreds of academic, research and industry leaders from 24 different countries to gather in London, the UK for this three-day meeting. To find out more, visit www.ipharmaconference.com. ProcureCon Pharma 2020 3 – 4 September Hotel Palace Berlin Join more than senior procurement professionals from Merck, Astra Zeneca, Roche, Sanofi, Lonza and other world-leading pharma businesses over two days and 40 interactive sessions that will help you make better outsourcing decisions, speed up transformation, co-create value with business Pharma EVENTS © Shutterstock / Fernando Garcia Esteban CPhI North America 9 – 11 September USA Pennsylvania Convention Centre, Philadelphia 80% of pharma and biotech companies in the US have offices located in the tri-state area around Philadelphia. So, what better place than CPhI North America to source the best solutions, network with the best minds in pharma, and access hours of content on all the latest trends? Visit this theatre for sessions on continuous manufacturing, innovative manufacturing technologies, integration challenges with smart equipment and a host of other hot topics. To find out more, visit www.cphi.com/northamerica. 36 Pharma Business International www.pbiforum.net Understanding Pharma Market Access 20 October Basel, Switzerland In an increasingly cost-conscious health care environment, pharma companies must make a thorough case for not only the clinical, but also the economic value of their products. This one-day course provides an introduction to the Pharma Market Access dynamics and challenges. Find out more by visiting www.ctcresourcing.com/course/introduction- to-pharma-market-access. 2020 Pharma CI Europe Conference & Exhibition 5 – 6 November Hilton Zurich Airport The 2020 Pharma CI Europe Conference & partners and unlock more innovation from suppliers. For more information, visit https://procureconhealthcare.wbresearch.com. Advanced Therapies 2020 7 – 9 September Business Design Centre, London The Advanced Therapies Congress is the place where life changing dialogue occurs. With both a conference and exhibition, it brings together industry leaders to meet, discuss and showcase their work in the cell and gene therapy industry. Attracting a large audience of biotech, pharma, start-ups, investors, research and technology companies from around the world, the event is a centralised meeting point to learn about new innovations, share discoveries and connect with industry partners. Get new perspectives and be inspired by over 500 global companies represented. Find out more by visiting www.terrapinn.com/congress/advanced- therapies. LogiPharma 2020 1 – 3 September Nice Acropolis, France LogiPharma is the world’s leading pharma supply chain event. With over 1,200 pharma supply chain leaders exclusively meeting in one place at one time, LogiPharma is the meeting place to benchmark your business with the best pharma companies and shape the future of your industry. To find our more, visit https://bit.ly/2lxpvNC. © Shutterstock/jkarnizz 36-37.qxp_Layout 1 09/06/2020 11:12 Page 1Exhibition (November 5-6, 2020, Zurich) is the industry’s gold standard event for senior level pharma, biotech, and medical device professionals who seek the latest in competitive and business intelligence. The Pharma CI Conference & Exhibition is the best and largest assembly of competitive intelligence executives in pharma, biotech, and medical devices for 10+ years. For more information, visit www.pharmaciconference.com. 36th World Vaccines & Immunization Congress 18 – 19 November Bangkok, Thailand The 36th World Vaccines and Immunization Congress mainly focuses on the gathering and concentrate on the trending advances and development in every aspect of Vaccines and Immunization research which takes an opportunity in meeting, organizing and see the new logical advancements of the specialists and researchers. To find out more, visit www.vaccines.vaccineconferences.com. www.pbiforum.net Pharma Business International 37 © Shutterstock/Lee Bernard LogiChem 2020 8 – 10 September De Doelen ICC Rotterdam LogiChem is Europe’s leading chemical supply chain event. Join over 350 senior supply chain and logistics professionals from BASF, Dow, Sabic, Du Pont and other world leading chemical manufacturers. Find out more by visiting https://bit.ly/2Im9FOw. 36-37.qxp_Layout 1 09/06/2020 11:12 Page 2FEATURES Immunotherapy exposé Clinical testing Antibiotics Start-ups Marketing Coronavirus update Next issue: Deadline - 22nd July 2020 REGULARS News Events M&A Round-up Eye on approvals Visit us at www.pbiforum.net where you’ll find the latest news as it breaks – and why not subscribe to our newsletters so you can have the latest news emailed to your inbox, in between printed issues? @pbiforumwww.pbiforum.net company/po-business-international 38.qxp_Layout 1 09/06/2020 11:13 Page 1Next >