Project Experience

Increasing Productivity By Branching Out

Client Situation
Some chemical companies have found themselves in a position to consider expanding their role in the chain of supply. In order to be qualified to produce platinum-based cancer treatments on behalf of a finished dosage manufacturer, our client's plant was brought up to very specific standards that could also allow for production of other select products. Thus our client wished to evaluate its potential entry into the market as a manufacturer of bulk pharmaceutical chemicals, selling directly to formulators.

Fuld Approach
Fuld & Company first identified the universe of formulators of dosage-form codeine, morphine, and hydrocodone. We then interviewed key management sources to determine whether buyers of these bulk chemicals were amenable to purchase from a new supplier. Through these interviews, we were also able to learn certain components of the pricing strategy of possible competitors.

Benefits and Implications
Our client did not wish to leap into this possible opportunity without a preview of possible opportunities and pitfalls. In this case, the client was able to enter the market and succeed. Other studies like this have not turned out as well - Fuld cannot predict the opportunity, but can provide the intelligence any company needs when facing these kinds of decisions. For more information about productivity issues in the healthcare industry, contact either Anthony Nagle at tnagle@fuld.com or Cynthia Gerber Tomlinson at cgtomlinson@fuld.com.