Happy holidays? Not necessarily in the pharmaceutical sector
Pharmaceutical manufacturers looking to cut costs need to keep focus on manufacturing/packaging to prevent product quality problems.
‘Tis the season to be jolly, right? Not necessarily in the pharmaceutical industry. A recent article from The Economist’s Intelligence Unit, for example, reported that Roche and Bayer were slashing thousands of jobs globally, attributing the cuts in part to industry consolidation, patent expires, and moving dollars to emerging markets.
It’s unclear if such job cuts will reach packaging staff at pharmaceutical companies, but one respected packaging veteran expressed concern to this editor that cutbacks could potentially affect packaging development (both new packages and packaging procedures), and operations (upgrades, safety, efficacy, recalls, etc.). This expert wondered if some of Johnson & Johnson’s problems could be traced to packaging and labeling errors resulting from cutbacks.
A recent Wall Street Journal online article noted, “Johnson & Johnson, which has been recalling a number of popular over-the-counter medicines, said it is withdrawing more Tylenol because of a labeling problem.” The recall of more than 9 million bottles, WSJ said, was being made “because the bottles’ front labels didn’t show they contain small amounts of alcohol from ingredients that flavor the medicine. …The recalls are costing the company hundreds of millions of dollars in lost sales and prompted the temporary shutdown of a key manufacturing plant and a revamp of manufacturing. The company has also shuffled management.”
The article said the labeling problem “doesn’t threaten the health of consumers, who don’t need to take action and can continue to take the product.” An unnamed contract manufacturer was said to have made the recalled products, according to the article.
The Economist’s piece concluded, “Job cuts that accompany a recession are understandable, and they are also reversible when better times come. But the shift into emerging markets, and away from the old sales and marketing routines, is more permanent. The jobs that are disappearing now will probably not reappear, though that may help to save other jobs by shoring up pharma company profits.”
Economic factors and strategic planning give a pharmaceutical industry veteran enough to be concerned about, but cutbacks in personnel that result in product quality issues could damage a company’s reputation and negatively impact the bottom line..
PhRMA Statement on Department of Homeland Security Efforts to Crack Down on Counterfeiting Crimes
WASHINGTON, Dec. 15, 2010 /PRNewswire-USNewswire/ — Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO John Castellani released the following statement regarding the Department of Homeland Security stepping up efforts to combat counterfeit drugs:
“The Department of Homeland Security’s (DHS) decision to step up efforts to eliminate counterfeit medicines should not only be applauded but should also serve as a warning sign to criminals selling fake and harmful counterfeit pharmaceuticals to unsuspecting consumers.
“No country is immune to the worldwide counterfeit medicine threat. A growing web of criminal networks around the globe are selling dangerous counterfeit drugs to innocent victims – people who might think they’re getting a good deal but in reality are receiving medicines that are fake, substandard and in some cases lethal. Make no mistake: criminals are not only targeting ‘lifestyle’ drugs but also vital medicines that treat cancer, diabetes, malaria and high blood pressure.
“The most common mechanism for counterfeit drugs to enter the U.S. drug supply is through purchases made on illegal online pharmacy sites that are operated by criminals in other countries with known counterfeiting problems. Cracking down on these illegal sites can help protect patient safety and help ensure that the closed U.S. drug supply system is not compromised.
“In most cases, criminals caught selling counterfeit medicines in the U.S. face lighter jail sentences and penalties than criminals selling illicit drugs such as heroin. For this reason, PhRMA will continue to advocate for stricter sentencing guidelines for counterfeiters – the average jail time for a counterfeiting crime is 3 years but we believe that 20 years is a better fit for such a potentially deadly crime.
“In the meantime, America’s biopharmaceutical research companies will continue to work with key government agencies – such as DHS and the Food and Drug Administration – as well as members of Congress to help safeguard patient health and the U.S. drug supply system.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $45.8 billion in 2009 in discovering and developing new medicines. Industry-wide research and investment reached a record $65.3 billion in 2009.