Polpharma Group is a CEE-based pharmaceutical manufacturer with 70 years of experience offering various products, including prescription drugs, consumer health care products, and generic active pharmaceutical ingredients (APIs).
David Gonzalez, Head of API Commercial, spoke to the PharmaSource podcast about their new ‘hybrid’ business model, which means they can now offer Contract Development and Manufacturing Organisation (CDMO) alongside their existing Generic API services.
Expanded contract manufacturing capabilities
“We are targeting companies with no API experience, for whom we can develop everything from pre-clinical to phase 1 and phase 2 products.”
Polpharma is one of the few companies in Central Eastern Europe that can provide these services, says David.
“Our quality and standards are all European, but (due to our location) we can offer services on a lower cost-base. It is promising and has been well-received by the customers from various markets.”
They are currently expanding their manufacturing capabilities with a $45-million investment to include High Potency Active Pharmaceutical Ingredients (HPAPI) and cryogenic technologies.
The expansion is set to begin operations from mid-2023, with full completion expected by 2026.
2024 trend: the end of big vertical integration for APIs?
Reflecting on significant trends shaping the industry in the year ahead, David said the paradigm of vertical integration is changing.
“Over the last few months, we have seen many big previously back-integrated companies now selling their generic API units to private equity or independent companies,” says David.
Recent examples of this trend have included the divestment of Glenmark Life Sciences as Glenmark Pharma ‘moves up the value chain,’ Teva selling its API division as it ‘pivots to growth,’ and Lupin considering the demerger of its API business.
“Back-integration used to give big companies like this a competitive advantage. This new paradigm means that companies must be focused on fewer products but with full control of the supply chain to remain competitive.”
Find out more on the Polpharma website
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