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No one in their right mind would build manufacturing from scratch. Contract manufacturers exist to do relatively cheap design work in exchange for access to the
by idealmedtech 4y ago
No one in their right mind would build manufacturing from scratch. Contract manufacturers exist to do relatively cheap design work in exchange for access to their expensive-to-build (but cheap to use by comparison) manufacturing facilities.
I can't speak to drug manufacturing, but I know from experience that when it comes to medical devices, you save almost 10x in up front fixed cost by outsourcing, like California is doing. You spend more per unit, but still profit, so you can build a healthy warchest while you accumulate experienced personnel to build out a more vertically integrated manufacturing process.
- pg_bot 4y agoWith regard to insulin 3 companies control 90% of worldwide production. I'm not aware of a third party manufacturer that can actually produce modern insulins at scale. Even if they existed, they still have to work around the issues previously stated. It is unlikely that you would be able to partner with the big players as they have no incentive to help a competitor and they are already running at full capacity. You probably don't have any other option than to build it yourself. Medical devices are frankly a lot simpler than making new drugs. (I know they are still exceptionally challenging)
- idealmedtech 4y agoThere are many many very difficult parts to novel drug developments, and I'm not saying they will have success finding something that doesn't infringe and also scales. What I'm saying is that the strategy of doing everything yourself with startup level funding and experience is not optimal, and you can save money and time by outsourcing at the beginning.