Overview of the Biotech Industry
The global investment in biotechnology has increased consistently, owing to the growing demand for medical applications that offer cost-effective care for the aging global population. To establish their presence in this competitive environment, prominent biotech companies are planning to invest heavily in advanced medicines such as biosimilar drugs to combat chronic diseases such as cancer and diabetes. The cost of biosimilars is 10-30% lesser than their parent products; thus, compelling businesses to invest highly in research and development to diversify their business models and offer reliable and cost-effective services to the customers.
Although biosimilar drugs are gaining traction among the end-user segments, several factors may hinder the growth of the industry. They include:
- Rising regulatory concerns: In recent years, biotech companies have been compelled to comply with the regulatory guidelines set forth by the Food and Drug Administration. With the fluctuating changes in regulatory requirements, it becomes necessary for the biotech companies to stay relevant and keep-up-to-date with the legislative changes and ensure that they meet all the requirements.
- Contract manufacturing: With the demand outpacing the production capabilities, several biotech companies have started outsourcing their production capabilities to reduce capital and outlay costs. However, companies face several uncertainties when it comes to meeting the quality standards while ensuring consistency in their product offerings.
- Innovations: The intense competition in the biotech industry is augmenting the need to stay relevant and keep pace with the latest developments. Moreover, developing products is an expensive and time-consuming affair and requires high investments.
With the increasing competition in the biotech industry, biotech companies are facing the need to invest highly in their technical capabilities to reduce the risks associated with the supply and further ensure quality in their product offerings. To tackle challenges and bridge the demand-supply gap, biosimilar drugs manufacturers should also understand who their target audiences are and their preferences toward the products.
The Business Challenge and the Solution Offered
A renowned biosimilar drugs manufacturer wanted to understand the current market scenario and analyze the latest trends and developments in the market. The biosimilar drugs manufacturer wanted to gain timely and relevant insights into the competitors, their product offerings, and devise an effective market plan to meet the growing preferences of the customers. With the help of an effective market intelligence solution, the biosimilar drugs manufacturer wanted to gain information on the cost and the market dynamics including raw material prices, indirect spend, and logistics expenses.
To identify the early warning signs of potential problems and mitigate potential risks in the supply chain, the procurement experts at SpendEdge carried out an extensive research. The methodology focused on interviews and discussions with prominent stakeholders in the biosimilar drugs manufacturing space. The experts also compiled information across various secondary sources to gain robust and predictive procurement intelligence.
The market intelligence solution offered by SpendEdge offered insightful ways for the biosimilar drugs manufacturer to assess the current market dynamics, drivers, and challenges. The firm was able to create a SWOT analysis to identify the barriers, opportunities, and market trends and devise effective procurement best practices to mitigate these potential risks.
Fundamental questions answered in this market intelligence study for biosimilar drugs include:
The engagement offered by SpendEdge helped the biosimilar drugs manufacturer gain a deep-dive knowledge on the supplier pricing, the cost structure, and the technology landscape. The category market intelligence engagement also helped biotech products manufacturer achieve operational efficiency while addressing the supplier diversity for the products offered.
To know more about our category market intelligence solution for biosimilar drugs manufacturer