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Considerations Impacting the Make vs. Buy Decision

By: Thomas C. Ransohoff
Reprinted with permission of American Pharmaceutical Outsourcing, March/April 2004

Decisions related to manufacturing are among the most important ones faced by emerging biopharmaceutical companies. There is an increasing realization that manufacturing decisions are strategic in nature. This article explores the many factors that must be considered in the “make vs. buy” decision, including: a) the availability and suitability of contract manufacturers, b) the importance of establishing manufacturing capability to the company, c) an evaluation of the risks involved (for either path) and d) financial considerations.