The Financial Advantages Of Purchasing Used Equipment And Investment Recovery Services

By Matt Hicks, COO

The loss of a patent for a branded drug product leads to opportunities for generic-biopharmaceutical manufacturers. Once a blockbuster drug reaches the end of its branded lifecycle, generic manufacturers will gear up to produce lower margin “copies.” However, in the wake of lost market share and declining revenue due to lost patents, many branded biopharmaceutical manufacturers are left with surplus manufacturing equipment. If a branded drug manufacturer has a robust pipeline, such equipment must be removed to make way for the next new product. At the same time, generic manufacturers and contract manufacturing organizations (CMO) are looking for opportunities to lower their costs to win new business with competitive pricing. With a reputable used equipment dealer involved, all of these companies have an opportunity for costs savings.

Over time, a biopharmaceutical manufacturing facility will change, as will its equipment needs. Long product development and approval timelines and complex compounds and delivery methods do not allow for one-size-fitsall manufacturing. A branded drug available from only one source often requires customized equipment, dedicated facilities, and redundant capacities to support large-scale manufacturing or packaging for a single product. New products may then require completely different manufacturing equipment and packaging lines to support new processes and demands.