By Matt Hicks, Chief Operating Officer, Federal Equipment Co.
Merger and acquisition activity in the pharmaceutical industry has been on the upswing, and many consolidated firms hope to achieve cost savings through the sale of redundant facilities and equipment. Maximizing resource recovery can be a challenge, though. Strategies for achieving higher returns on surplus equipment are discussed.
One of the biggest trends in the pharmaceutical industry today is the heightened level of merger and acquisition activity. Pharmaceutical manufacturers are looking to not only expand their product pipelines, but also increase their technical and scientific knowledge and capabilities while achieving cost savings through synergies. The sale of redundant facilities and equipment plays a major role in their efforts to achieve cost savings. However, maximizing investment recovery can be challenging, particularly for companies that do not have previous experience, have limited communication between different plant and R&D sites, or simply lack the personnel and resources to implement an efficient recovery program.