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Biotech / Medical : Regeneron Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: RWReeves who wrote (342)	12/12/1999 12:58:00 AM
From: Miljenko Zuanic	Respond to of 3557

RWR, I am not. I thank you for devil advocate approach. We need to look on any issue with both side and tried to find correct opinion (regardless whose are they), or at least present opposite side. For last 18-24 months significant trend toward contract manufacturing and outsourcing intermedier and final bulk products are facts. This is opportunity for smaller player (like where I am working), because of their capability to quickly adapt and change as new environment ask from them. Also, Asia is today supplying big part of the bulk drugs, specially for generic market, and cutting into profit. Big pharma is more and more oriented toward life science, and less toward bulk drug production (small molecule). Not because margin is so low, but source and keeping up to date with new technology for new drugs manufacturing compared to contract manufacturing expense is negative. Also, short life of drug on market somehow do not pay well for big investment in plant facility/capacity. Contrary, MRK has different philosophy. They continue to manufacture drug even after patent expiration by selling drug to generic player. For small bt, small molecule contract manufacturing is only option. For bio-product, story is bit deferent. Very few small players. Technology is new and in tide hand. It will be much harder for generic to enter market. We have trend for significant expansion of the bio-product, and shortfall of capacity (based on what I read in literature). Opportunity for those who have capacity and knowledge (this isn't simply fermentator as I know from my post-studies days) to enter market and offer service (until their own products are ready to enter large scale production). Miljenko