With the emerging economies growing four times faster than the developed economies the focus of global trade will continue to shift eastwards, according to Gilles Cottier, recently appointed president of SAFC.
Not only will the emerging nations contribute more than 50% of global GDP growth but, led by China and Inda, the midde class will triple in size by 2030, he believes. This means that Asia is becoming a critical marketplace for the global pharmaceutical industry and not just a place to outsource because of the robust long-term growth prospects for the medicines and diagnostics sectors.
SAFC is well placed to take advantage of this shift with an established presence in these markets ranging from r&d to commercialisation and an ongoing programme of investments in manufacturing facilities in Asia Pacific, including Wuxi in China, Taiwan and Korea. For example it is planning to purchase more land in Wuxi later in 2009 in readiness for the need for more capacity.
However, quality and safety are still issues in the developing economies and some parts of the supply chain are moving operations back to facilities in the US and Europe as a result. It is no longer acceptable to compromise on quality for the sake of a cheaper price, Cottier stressed, citing the recent example of contaminated heparin as an illustration of the financial and human cost. "SAFC is a transparent and trusted partner," he said. "Its global footprint enables it to supply SAFC quality from its plants in Asia Pacific."
On the subject of the global economic downturn, he acknowledged that the short-term situation is dominating today's actions. Consolidation and the lack of financing for the biotech sector mean that the number of viable candidates is shrinking. But Cottier believes that as cash becomes available again a surge of delayed candidates will begin moving through the development pipeline.
SAFC is still looking for growth in 2009, but this is likely to be less than the 10% originally targeted, said Cottier. Other goals will be to improve profitability and in-source wherever possible with a view to cutting costs and improving quality. Customers want a reputable, financially solid partner, he added, and SAFC was well placed to seize the opportunity.