As the
global pharma industry becomes more diverse, many drug makers
are outsourcing the production of bulk pharmaceuticals to save
money and resources.
This has created a lucrative subcontracting market,
particularly in Asia, for the production of about 50 main raw
chemicals, which form the building blocks for drug compounds.
Most of the leading global brands and generic companies are now clients of ScinoPharm, an arrangement that is likely
to continue, as once a contract supplier of a material is
established and incorporated into the validation of any
particular drug it is very difficult for a company to change
suppliers later on.
ScinoPharm now has plans to expand and
strengthen its market presence both globally and in Taiwan by
tying up with large local pharmaceutical companies.
With the Taiwanese government owning a quarter of the
company, ScinoPharm is assured of continued financial backing
by the government to help it become a major global supplier of
API services and products.
In particular, the company is well positioned to capitalise
on the generic drug market, which promises to be one of the
biggest continuing areas of industry growth in 2006, with more
than $11.3 bn in sales of branded drugs going generic.
To date, ScinoPharm has received 20 drug master files
(DMFs) to produce generics drugs from the US Food and Drug
Administration (FDA), and a combined total of 40 DMFs from
Canada, Europe, Australia and New Zealand. ScinoPharm's
scientists have already developed manufacturing processes for
more than 30 APIs, with six of them being commercialised so
far and sold in the US and Europe.
Meanwhile, a number of biotech companies are now
collaborating with ScinoPharm on new drug development. So far,
more than 40 new chemical entity (NCE) projects have started,
with five of them in the Phase III stage of clinical trials.
Among the NCE projects, one has been commercialised and one
customer listed ScinoPharm as the only supplier in its new
drug application (NDA). In addition, ScinoPharm offers a wide
array of services including R&D, process development and
cGMP manufacturing and is already providing such services for
seven of the top 10 brand companies.
In recognition of its process research and development
services and API manufacturing capabilities, ScinoPharm was
the awarded the 2005 Entrepreneurial Company Award from Frost & Sullivan.
The award is given each year to a small company that has
demonstrated superior entrepreneurial ability in its industry
and signifies the company's identification of a unique and
revolutionary product solution with significant market
potential. Additionally, it certifies that the company's
marketing strategy is sound and poised for success.
And poised it is. The company is growing consistently
through its current business pursuits and has also now
developed the capabilities to produce several generic
biopharmaceuticals in anticipation of capitalising on the
upcoming biotech boom.
