AZ reaffirms whole-hog API outsourcing

Remember last fall when AstraZeneca EVP David Smith said the company was looking to outsource most of its manufacturing [1]? And the ensuing outcry had AstraZeneca's PR operation backpedaling like crazy [2]?

Well, after AstraZeneca settled its differences with Ranbaxy Laboratories, Smith's boss affirmed a big chunk of those outsourcing plans. In a conference call about the Ranbaxy deal, CEO David Brennan (photo [3]) said that AstraZeneca wants to outsource all API manufacturing within 10 years. AstraZeneca, remember, agreed to hand over manufacturing [4] of Nexium's active ingredient to Ranbaxy as part of the settlement. "This move is absolutely consistent with our supply chain strategy," Brennan said. "We have long-term plans to exit all API production over the next five to 10 years."

While that's not exactly "most" of AstraZeneca's manufacturing, it is a sizable shift. Stay tuned.

- see the article [5] in Contract Pharma

ALSO: India's Dr. Reddy's laboratories agreed to buy BASF's contract manufacturing plant in Shreveport, LA, which focuses on turning out finished prescription and OTC liquids, tablets, and creams for the U.S. market. Terms weren't disclosed, but the business brought in $43 million for BASF last year. Report [6]

Related Articles:
AstraZeneca to outsource manufacturing [1]
AstraZeneca: Just a bit of outsourcing [2]
Forecast: BioPharma outsourcing will grow '08 [7]