Introduction

The biopharmaceuticals industry is vital to the global economy, representing nearly $200 billion in annual sales. The global biopharmaceuticals market is expected to grow nearly 14% annually through 2021. Challenges inherent to your industry include increased regulation, expiring patents, and counterfeit pharmaceuticals. However, positive trends such as economic growth of developing markets, sustainability, and mergers and acquisitions present your biopharmaceuticals company with significant opportunities.

Your surplus asset management is key to maximising value from these opportunities. This business function encompasses the management, valuation, and sale of surplus assets. For biopharmaceutical companies, surplus assets include mass spectrometers, high-performance liquid chromatographs, reactors, and other capital assets sitting idle in warehouses or nearing the end of their lifecycles.

Traditionally, the management of this surplus has been a burden for organisations. Today, your biopharmaceuticals business can leverage your surplus assets to capitalise on opportunities in your industry and maximise total value across your enterprise. Since surplus asset management is, by definition, a non-core function for most biopharmaceutical companies, your organisation likely lacks the time and resources required to build, implement, and manage a high-performing surplus asset program. The ideal solution is often to select a trusted partner to handle this area.

Read on to discover key opportunities and challenges impacting your industry and how a trusted surplus asset management provider can help you optimise value from them.

Economic Growth of Developing Markets

As standards of living in developing countries continue to increase, so has demand in these regions for pharmaceuticals. For instance, Africa’s middle class has grown to over a quarter of its population with no signs of slowing. As a result, African pharmaceutical spending is expected to rise to $45 billion by 2021.

Emerging countries are also becoming pharmaceuticals producers. India’s pharmaceutical exports grew 270% from 2002 through 2014. Developing countries such as Brazil, China, and Mexico are on similar paths, and by 2021 could account for $500 billion in pharmaceuticals sales.

To capitalise on these trends, forward-thinking biopharmaceuticals companies are expanding or shifting operations and sales presences into these markets. A recent survey found that almost 75% of biopharmaceuticals CEOs plan to expand operations in Africa.

How a Surplus Asset Management Partner Helps You Capitalise

Biopharmaceuticals companies that shift production to developing countries may consolidate production in developed countries, which will likely result in surplus. A surplus partner with expertise in your industry and asset categories will maximise recovery for these assets, fueling your investments in global production. A dependable partner will also help you identify surplus from closing facilities to redeploy to new locations overseas.

Developing countries are a robust market for your surplus. Biopharmaceutical assets that your organisation considers outdated or obsolete may be in demand in South America and further into Africa. An effective surplus asset management partner will leverage its global buyer base to sell your surplus for maximum value anywhere in the world.

Expiring Patents and Counterfeit Pharmaceuticals

Over the next few years, expiring patents will put over $220 billion of sales in jeopardy for biopharmaceuticals companies as competitors rush to market with imitations. To stay profitable in this environment, biopharmaceuticals manufacturers are innovating processes to maximise production efficiencies.

Your business must also face the challenge of counterfeit pharmaceuticals. The World Health Organization estimates that 10% of medicine worldwide is counterfeit. With modern counterfeiting so sophisticated that fake pharmaceuticals are nearly indistinguishable from real ones, biopharmaceutical companies must fight back by developing new technologies and processes to ensure their products’ integrity.

How a Surplus Asset Management Partner Helps You Capitalise

New, innovative equipment and technology will help your business tackle the challenges of expiring patents and counterfeit pharmaceuticals. Savvy biopharmaceuticals companies that invest in this equipment will end up with surplus in the form of outdated assets. A trusted surplus asset management partner will help you identify this surplus and strategically sell or redeploy it as appropriate, maximising total program value.

Focus on Sustainability

Leading biopharmaceutical companies are focusing on sustainable production. Eli Lilly’s efforts include mitigating energy use and the environmental impact of manufacturing. AstraZeneca is monitoring and reducing active pharmaceutical ingredient emissions. Bayer’s sustainability program has already improved IT energy efficiency by 20%.

Your biopharmaceutical company can stay ahead of competitors and score points with green consumers and partners by implementing sustainability initiatives that reduce energy use, emissions, and waste.

How a Surplus Asset Management Partner Helps You Capitalise

A high-performance surplus asset management partner will support and improve your sustainability initiatives. Through a reuse, redeploy, resell, and recycle approach, an expert provider eliminates waste by responsibly maximising the use of surplus and disposing of it in an environmentally friendly manner.

Increased Regulation

Regulatory agencies are tightening restrictions on manufacturing and research & development, creating challenges for biopharmaceuticals companies. The Food and Drug Administration (FDA) has imposed stiffer requirements on the methods, facilities, processing, and packing of pharmaceuticals.

Following an increase in pharmaceuticals recalls over the past few years, the FDA has implemented a more rigorous approval process. The organisation has increased pharmaceuticals testing to ensure safety and validity, and continues to require strict compliance with Good Manufacturing Practices. Emerging pharmaceutical producers such as China also require certification in and adherence to these practices.

How a Surplus Asset Management Partner Helps You Capitalise

The surplus asset management process for biopharmaceuticals assets is also highly regulated and, if handled without expert compliance support, fraught with potential risk. A proven surplus asset management partner will provide a full suite of compliance services to protect your business and reputation from all risks associated with managing, valuing, and selling biopharmaceutical surplus. By integrating an expert team into your program, your provider will ensure you comply with all regulations and procedures specific to your surplus.

Conclusion

An expert surplus asset management provider helps your biopharmaceutical business capitalise on the many opportunities and challenges in your industry, from economic growth of developing markets to to increased regulation.

The right partner will maximise total value of your surplus while requiring little time and effort from your organisation. A reputable partner will have professional, data-driven services to manage, value, and sell all types of surplus assets. It will also possess extensive knowledge of the secondary market; a vetted global buyer base; and the ability to ensure transparency, efficiency, and compliant removal of assets. Partnering with an experienced provider, your organisation can do more than just seize industry opportunities. It can maximise value for your surplus while freeing up resources to focus on core business.

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