CUSTOM MANUFACTURE

The life science industry, particularly pharmaceutical and agrochemica l companies, is increasingly outsourcing the development and manufactu re of active ingredients and intermediates for drugs and pesticides to specialised fine chemical companies. The global market for custom man ufacture represents ca. USD 12 billion today and is growing. As the nu mber of companies involved in custom manufacture is growing, too, ther e is also increasing competition. Entry hurdles are high and the key s uccess factor is the ability to manage the 'value-speed-quality' trian gle. Future challenges for the providers of custom manufacture are the high asset intensity of multipurpose plants, the increasing regulator y constraints and the purchasing power of the mega life science compan ies.