LIVE FROM CPHI: Aesica introduces new supply chain service model

Published: 15-Oct-2015

And outlines its plans for the future with sister company medical device manufacturer Bespak

Contract development and manufacturing organisation (CDMO) Aesica unveiled a new approach and business model at the show, which solves multiple supply chain challenges in one move. The company has become a kind of 'super CDMO' and will take on the management of other CDMOs, while serving as the single, central point of customer contact.

This new business model enables Aesica to reduce the number of CDMOs which previously the customer had to manage. The company will also identify which are the most strategically useful and effective CDMOs to engage in projects, significantly enhancing value for money.

With this new business model, Aesica aims to streamline processes and create a simplified supply chain structure, achieve the industry's goal of reducing the overall number of supplier relationships, while at the same time maintaining a consistent outsourcing approach across a portfolio.

The strategy also guarantees On Time In Full (OTIF) product delivery, optimises efficiency, eliminates waste and supply shortages, and achieves significant cost savings. Moreover, full visibility is achieved across the entire end-to-end manufacturing process. In addition, time to market is accelerated. For example, Aesica hosted a three-way 6 SIGMA workshop, for a project with a customer and another engaged CDMO, the outcome of which was reducing the overall supply lead-time from 180 days to 45.

Continued growth within the CDMO market remains strong

Aesica already manages a portfolio of more than 10 different CDMOs and has assigned its own dedicated team to ensure total process management across an entire supply chain. This includes procurement to manage the relationship, risk assessment and price negotiations between customers, Aesica and the other CDMOs.

The team is also responsible for quality and will manage QC and QA activities and the supply chain to handle the delivery of components, including API for bulk production at the CDMO and then onward delivery to various sites for final processing.

The business model is primarily geared to small and medium sized CDMOs, which are facing similar price pressures to big pharma, while lacking the complete range of skill sets and resources required for managing multiple CDMOs. It is also suitable for companies with diverse portfolios and affiliates or licensees located in multiple geographic regions.

Ian Muir, Managing Director of Aesica Pharmaceuticals, speaking to Manufacturing Chemist at CPhI, said: 'Continued growth within the CDMO market remains strong, but at the same time the market is becoming more competitive and pharma customers are looking for a smaller number of CDMOs that offer high-value services which help them satisfy a range of industry challenges.'

Aesica also unveiled its new brand identity at CPhI following its acquisition by Consort Medical in September 2014.

Consort Medical is a developer and manufacturer of disposable medical devices for drug delivery including inhaled, nasal and injectables products through its core operating division Bespak.

The combination of Aesica and Bespak enables the companies to provide customers with a single source for drug and device development, formulation, manufacturing and packaging. The group’s global offering comprises advanced drug delivery technologies, formulation development and manufacturing solutions for drugs.

The core vision focuses on the delivery of early stage development to full scale manufacturing services

Muir said the core vision focuses on the delivery of early stage development to full scale manufacturing services that help customers to streamline complex supply chains and, in doing so, accelerates the route of drugs to market, reducing cost and complexity for the group’s partners.

'We have now completed the integration of the Aesica and Bespak businesses and moving forward, our aim is to feel like one company, where Bespak develops the devices for drug delivery, and Aesica can use its skills in formulation to ensure that the medicines in these containers flow smoothly and are easy for patients to take.

'Aesica has clearly grown and the sale to Consort Medical is a successful outcome following 10 years of equity ownership. We have the right service culture and we are focused on the customer. There are obvious synergies between us and Bespak and we aim to maximise cross-selling as we move forward.'

The first financial figures since the two companies came under the same holding company are expected to be released before the end of the year.

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