Investment Recovery for Biopharma Equipment – Part 1

By Matt Hicks

This article is the first of a two-part series discussing the unique value proposition of pharmaceutical manufacturing equipment. All manufacturing organizations need to responsibly manage assets, but pharmaceutical equipment requires unique strategies to manage and recapture the value of equipment.

Mergers and acquisitions among pharmaceutical companies, as well as an ever- changing product mix, lead to surplus capital equipment among pharmaceutical manufacturing facilities. Often these surplus inventories occupy valuable manufacturing and lab space, or are in storage facilities or “bone yards.” An effective capital equipment investment recovery strategy can help turn idled equipment into money-making assets through sales that generate cash, network redeployments that save time and money, and tax deductible donations. There are multiple approaches to viable equipment investment recovery strategies. Regardless of whether equipment investment recovery is handled project-by-project, through a third party or through a formal department, there are some basic best practices for a pharmaceutical manufacturer to consider.