06 February 2004 19:59 [Source: ICIS news]
TORONTO (CNI)--Canadian contract drug maker Patheon expects to grow strongly as more pharmaceutical firms seek to exit the tightly regulated drug manufacturing part of their business, according to conference materials made available Friday.
Patheon’s top executive Robert Tedford, who outlined the company’s growth strategy at an investor conference in New York City earlier this week, said only some 15% of the markets Patheon targets is currently outsourced.The Mississauga, Ontario-based company focuses on providing prescription and over-the-counter (OTC) drug manufacturing and development services.
Making reference to tough US Food and Drug Administration (FDA} audits of drug production facilities, Tedford said "substantial evidence has developed in the last year or so" that big pharmaceutical companies are "exiting" manufacturing.
He noted: "We think that Schering-Plough clearly has exited that space, and there is evidence that Pfizer and other companies are doing the same (…) and we see excellent growth opportunities in that market space for us."
Tedford said Patheon is offering its services "in a highly regulated market, perhaps the most highly regulated market in the world other than the aerospace industry."
He predicted that stringent FDA audits of the industry will continue "and we are well-organised to meet those particular challenges, because that’s our business."
Said Tedford: "Understanding the regulations and maintaining our sites in accordance with those standards is critical to our success." He noted that last year alone Patheon had seven FDA audits of its facilities, in addition to more than 100 client audits.
Tedford said Patheon has 11 manufacturing sites in the US, Canada and Europe and is recognised as "a global leader in a growing market." It has key strategic partnerships with many of the world’s top 20 drug makers, including Aventis, Novartis and Roche.
Patheon currently manufactures some 700 drugs for more than 150 client companies. It makes 14 of the 200 top-selling drugs in the world, Tedford said, and he added: "I think the trend is clearly up, the question is how many more will we manufacture five years from now."
Tedford said that Patheon continues to "aggressively pursue" opportunities to acquire additional manufacturing sites in the US and Europe.
In addition, Patheon is increasing its role in the development and making of new drugs as it aims to "serve the innovators in the market" and develops "expertise in the very complex process of launching new products into the market place [for clients]," Tedford said.
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