comPOUND: when insourcing becomes more cost efficient and more flexible than outsourcing

Outsourcing has, for a long while, been thought to be cost effective allowing a company to focus on the things it is best at but more recently there has been a shift in opinion on this. A recent 2014 survey reported that although 32% of Biopharma companies plan to outsource a business process or function in the next 12 months, 17% are planning to insource previously outsourced work, which is more than the average across all other industries (PwC 17th Annual Global CEO Survey 2014). GSK and Eli Lily are two pharmaceutical companies that have invested in insourcing and have proved this to be a more efficient strategy. GSK report that insourcing has simplified the supply chains, made more efficient use of their facilities and created better control over all processes. One of the reasons insourcing has become a more viable and cost effective option for a company is advancing technology including automation systems that require less dedicated personnel to run them.

Here we present an example of how TTP Labtech’s automated robotic equipment has helped Lundbeck, one of the biggest pharmaceutical companies in Denmark, specialising in brain diseases, to insource their primary and liquid stores of compounds and become more cost effective and flexible in the process.