Takeda outsources more manufacturing in bid to cut costs
To substantially lower production costs, Japanese company Takeda Pharmaceutical is reducing direct manufacturing and outsourcing production to subsidiaries and external firms, and expects this to raise the ratio of outsourced production to 80% of its overall output this fiscal year.
To substantially lower production costs, Japanese company Takeda Pharmaceutical is reducing direct manufacturing and outsourcing production to subsidiaries and external firms, and expects this to raise the ratio of outsourced production to 80% of its overall output this fiscal year.
Takeda has locally been outsourcing production processes to other pharmaceutical companies, which lifted the ratio from 3% in fiscal 1997 to 56% in fiscal 2002.
The company has recently upgraded facilities of a factory owned by subsidiary Takeda Ireland, installing equipment to manufacture an intermediate material used for making ulcer drugs that can be taken without water. The factory can now produce ulcer medicines for sale in the US and Europe without relying on materials from Japan.
Given the growing demand for drugs that can be taken without water, the ulcer agents are one of Takeda's best-sellers, generating ¥324 billion (€ 2.3bn) in US and European sales in fiscal 2004, 30% of the group's global prescription drug sales. Takeda's subsidiaries in such countries as Italy and Indonesia already make drugs for sale in European and Asian markets.