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Happy Chromatographer create wealth. Because they understand the industrial evolution
Dear Chemists, Biochemists, Technicians and Chromatographers
Since 1995 we supply chromatography tools and consumables to the global markets. Daily we speak with technical specialists in pharmaceutical, biotech, diagnostics and food industries. More details about us you find in our Company Profile
Today’s work environment is unfriendly. As a consequence of that many employees are depressed cynical and worried about job security. Furthermore, many have mentally resigned. Indeed, most just perform a job description. Respect between workers and managers is disappearing. Thus, improving productivity has become almost impossible!
We are disappointed and concerned about this trend. As a matter of fact, pharmaceutical companies are driven by innovation. Furthermore. The industry is here to improve health, wellbeing and prosperity for society per se.
Review of the 20th century
In the eighties and nineties, many creative and flexible suppliers of innovative tools were in the business. They helped life scientist to develop unique products and technologies. In any case, it was a win-win situation for everyone.
Unfortunately, there was practically no financial support from the Pharma Manager. Many private tool suppliers had to finance their own research. However, this was also an opportunity to grow a globally active speciality company. Japan was particularly successful in collaborating with local SMEs and start-ups. Still, the competition was tough and technical demands were high. As a consequence of that, only the most creative tools survived. Another important benefit emerged. Scientist acquired a solid understanding of costs and performance of tools. Both parties motivated each other to be the best.
It was also a time when smart technical department heads supported researchers that worked with external experts to develop unique tools and intermediates. They realized “Happy Chromatographer create wealth”
By 2000, a novel ultrapure Silica B evolved. ACT was the first manufacturer to introduce HPLC column made from Silica B.
MS manufacturers from the USA, approached top executives in western pharmaceutical companies to finance the development of MS technology. And they succeeded.
As a rule of thumb, managers considered drug discovery as a high-risk endeavour. They commenced to out-source research to universities and start-ups.
A decline in annual registration of NCE/NBE triggered the installation of more administrative and sales staff. They focused on developing markets in Asia. Large companies shifted the procurement of intermediates from western to low-cost manufacturer in Asia. Generics suppliers procured API and pharmaceuticals from Asian providers.
India became WTO- Member 1995. As a result of that, they enjoyed the benefits of TRIPS. TRIPS was the most comprehensive multilateral agreement on intellectual properties. It empowered the Indian drug manufacturer to copy IPR protected compounds. Furthermore, it enabled them to sell copy-API/drugs in India and Africa. By 2005 India introduced their own IPR laws and TRIPS was cancelled. The shrewd Indian Government installed an appellation court that became the source of numerous IPR battles with western companies.
New Giants emerge
India and China became quickly the leading low-cost suppliers to the world. Soon Indian family-owned companies started to raise capital on NASDAQ. With the funds, they acquired many start-ups in the west. Off course, it was also a fast route to the local registration authorities. Furthermore, it was also a strategy to conveniently build vertically integrated multinational companies.
Eastern enterprises grew fast and became financially strong. Indeed, large life science companies were able to commence in-house drug discovery. Heath became a strategically important industry for the Chinese and Indian government. Many professors from leading western universities were invited to migrate to China to establish English speaking life sciences courses.
Biopharmaceuticals the new growth opportunity
Research and new knowledge in biology, biotechnology and biochemistry spawned many new technologies. Additionally, this led to new therapeutic and diagnostic applications.
Around 2010, large pharmaceutical companies started to consolidate and monopolize their purchasing activities. Consumables had to be procured from licensed sole suppliers. Innovative compounds and tool SMEs were cut off. Pharma scientist lost access to a variety of creative tools that previously allowed them to development of unique compounds and processes.
We too invested a lot of time to extend patent life. This brought tremendous additional revenue for our customers. We were deeply shocked when we witnessed purchasing departments destroying billions of additional revenues. Speaking about this it opened doors widely for competitors.
Hedge funds discover the lucrative health sector
Suddenly, hedge funds acquired hospitals, para-medical, pharmaceutical and lab supply companies. After creating huge global financial disasters (2001, 2008) the finance sector became known as the wealth eliminator. Particularly Hedge-Fund is known to follow simple and disruptive objectives. They maximize returns, streamline product ranges and reduced labour and overheads. Hedge Funds perceive Research as a risk factor and cash eliminator. Consequently, research departments were quietly trivialized standardized or sold. Hedge funds operate in-Cognito and from boards. This leads to frightened and defensive people. Moreover, it leads to organizational complexities and chaos. Productivity drops. Delivery times doubled. Erroneous purchases increase dramatically and costs skyrocket.
Most financiers and administrators believe that intelligent machines will soon replace expensive specialists. Indeed in a few years, we can look back and count the gains or the losses.
Decision-makers don’t understand the risk
For investors research means risk. The scientist doesn’t understand the money they are the source of risk. Non-technical personnel witness every day the birth of new products. Unfortunately, they don’t understand that new products come from development. Very few managers comprehend that progress and high-profit margin in the health sector can only be achieved through fundamental research and IPR. Linking with or out-sourcing to technical Universities is a better strategy. However, priorities for most people in universities is to gain certified knowledge in a free-spirited environment. And it is about to publish or perish.
In the profit-driven industry, other parameters are of importance. Confidentiality, reproducibility, efficiency, effectiveness, speed to the market, differentiation, for instance.
In the eighties, the finance sector has introduced short-termism and corrupted the economic system. The scientist doesn’t have time anymore to create processes with 100% reproducibility. They are permanently defending themselves. Instead, they entertain their challengers with show business.
Much of the research data is not reproducible by other people. Consequently, such data can’t be used as a design basis to calculate successful growth strategies.
The least risky strategy is to return to periods with growing productivity and to extend the success formula. Furthermore, if we would change from threatening to motivating people, we get their support. Ultimately, we need to set high but realistic standards. And AI should not be used to replace researchers or financiers for that matter. But to refine processes and for knowledge gathering.