Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

Merged pharmaceutical firms seek fast-track route to savings

25-Feb-2019
Dave Locke (pictured)
EMEA Chief Technology Officer, WWT
Merged pharmaceutical firms seek fast-track route to savings
The pharmaceutical industry is preparing for an accelerated pace of consolidation, with the number of mergers up 39 per cent since 2017. This year has already witnessed its first ‘super merger’ between two of the world’s largest pharmaceutical companies, Bristol-Myers and Celgene, valued at $74 billion. 

The key drivers behind the latest round of mergers and acquisitions activity stem from the pressure to cut costs and achieve greater economies of scale combined with the ever-increasing cost of drug development and the mounting pressure to innovate faster. Drugs typically take 12 years from the initial discovery stage until they are market ready, with the estimated cost of £1.15 billion per drug, and only 1 in 5000 medicines making it to the market.

As the prospect of cost savings excites the minds of business leaders operating in the sector, pharmaceutical companies are looking for new avenues to free up budget and deliver game-changing healthcare solutions faster, according to Dave Locke, EMEA Chief Technology Officer at World Wide Technology. An area attracting growing attention from the sector is Telecom Expense Management (TEM). TEM allows companies to map their existing communications expenditure and save up to 40 per cent of their current costs.

Dave comments: “As companies merge, it is invaluable for them to gain full visibility of their sprawling estates and the legacy of complex communications networks. This in turn can free up much needed cash to be reinvested into digital initiatives. Telecom Expense Management is one way pharmaceutical firms are able to reduce costs, invest in R&D and increase competitive advantage.

“The top priority for newly merged companies is to gain insight into their existing communications network before working on consolidating them. TEM equips firms with the ability to view, control, navigate and manage their telecom infrastructure— empowering them with the flexibility needed to access the fastest route to savings within a merger process.”


Dave continues: “It’s very easy for global firms to lose sight of the complex contracts they hold, especially when discounted deals finish and they end up overpaying for an underutilised service. Once the TEM-enabled level of oversight is achieved, contracts can be re-negotiated and any dormant links removed – allowing for instant savings which can be used to drive tangible business outcomes and competitiveness.”

Johannes Panzer
Head of Industry Strategy for Ecommerce, Descartes Systems UK
Is digitisation the key to preventing cross-border landed costs from disrupting international ecommerce?
Richard Seel
Managing Director Supply Chain & Logistics, Delaware
Meeting the Challenge of Supply Chain Efficiency – How Manufacturers Can Achieve their Goals
Olivier Binet
Managing Director International Markets, InPost
How to build sustainability into last mile deliveries
Ron Volpe
Global Vice President Apps Business Development, Tradeshift
Under-Pressure Retailers Turn to D2C to Level the Playing Field
Craig Summers
UK Managing Director, Manhattan Associates
Margin Erosion is turning the spotlight on the Warehouse
Simon Runc
Principal Visual Analyst, Atheon Analytics
Unlocking the Value in Data
Steve Purvis
Operations Director, Bis Henderson Space
Brexit Uncertainty Highlights Need for Flexible Logistics Strategy
Alan Gunner
Business Development Director, Adjuno
Starting at the source: achieving a sustainable supply chain
Craig Summers
UK Managing Director, Manhattan Associates
Conquering Connected Commerce
Mark Jolley
EMEA Manufacturing, Transport & Logistics Solutions Sales Lead, Zebra Technologies
Augmented Reality is becoming a Retail Reality
Craig Summers
UK Managing Director, Manhattan Associates
The Cost of Doing Nothing
Sam Ireland
International Marketing Manager, Loftware
Are You Navigating Global UDI Compliance?
Stephen Cameron
Business Development Director, SWRnewstar
How the Resource and Waste Strategy Can Empower Industry
Georgia Leybourne
Senior Director International Marketing, Manhattan Associates
Are we embracing the profit potential of the over 50s?
Jon Moody
Chief Executive Officer, SSG Insight
The Future of Supply Chain Management
David Luttenberger
Global Packaging Director, Mintel
Mintel announces top global packaging trends for 2019 and beyond
Andrew Tavener
Head of Marketing, Descartes UK
Compliance Management – it’s time for joined up thinking
Stephen Cameron
Business Development Director, SWRnewstar
Primark's move to 100 per cent sustainably sourced cotton should be commended
Marc Corriveau
Account Manager, Loftware
Changes in packaging result in ROI for F&B products
John Perry
Managing Director, SCALA
Why an extension is best for British businesses
David Jinks MILT
Head of Consumer Research, ParcelHero
Booking a courier? No printer required, says ParcelCompare
Graham Parker
CEO, Gravity Supply Chain Solutions
Mitigating The Risks Of Trade Wars And Tariffs
Sam Ireland
International Marketing Manager, Loftware
How Brexit Will Impact Supply Chain Labeling?
Sid Holian
Managing Director, Bis Henderson Consulting
Three critical steps to a hi-tech, agile supply chain
Manu Tyagi
Associate Partner, Retail and Consumer Goods, Infosys Consulting
M&S and Ocado have signed a £750 million deal to take M&S groceries into the home delivery market
Olivier Frère
Serialisaton Expert, Zetes
Understanding the Tobacco Products Directive
Paul Heiden
Senior Vice President of Product Management, Ultimaker
6 overlooked benefits of 3D printing for your supply chain
Johannes Panzer
Head of Industry Strategy for Ecommerce, Descartes
How to make international ecommerce transparent, efficient and cost-effective
Craig Summers
UK Managing Director, Manhattan Associates
Putting the WOW in the checkout experience
Richard Parfect
Fund Manager, Seneca Investment Managers
The cessation of Airbus A380 production
John Perry
Managing Director, SCALA
What next for British business?
Chris Jones
EVP Marketing & Services, Descartes
5 Key Logistics Trends and Technology Implications for 2019
Craig Summers
UK Managing Director, Manhattan Associates
What is the Checkout of the Future?
Andres Richter
CEO, Priority Software
UK Manufacturing: The Productivity Conundrum
Martin Meacock
Director, Product Management, Descartes
Brexit: only 10 weeks to implement if changes are ultimately needed
John Perry
Managing Director, SCALA
What does May's defeat mean for the supply chain?
Martin Meacock
Director, Product Management, Descartes
Get Ready for CDS