Part 1: State of the Industry: A Tefen Series: Operational Excellence in the Life Sciences
The life sciences industry is under pressure from the decline in the discovery of block-buster products, aggressive strategies from the generic manufacturers, the emergence of competitors from the East, and the global economic downturn. These factors are causing the pharmaceutical, biotech, and medical device companies to rethink the way they operate. Growth is no longer the mantra of the Life Sciences industry, but it is survival and maintaining a competitive advantage. The ability to supply products in the most cost-effective manner through efficiency initiatives has become necessary just to survive. Over the last 5 years, this has led life sciences companies to embark on operational excellence (OpEx) programs, based on lean, six sigma and other improvement methodologies. This paper summarizes research conducted by Tefen Ltd. in 2008-2009 on these OpEx programs, and how they have reshaped the way life sciences companies develop, supply, and even sell their products.