The Pharmaceutical industry has been one of the most significant enablers of human progress over the last decades. It has lengthened average life spans, improved the quality of life and enabled humans to be more productive. 


Overview

US Life Expectancy 1950-2011

Sources: President’s Council of Advisors on Science and Technology & Centers for Disease Control and Prevention (CDC)

LAM’s work with leading biopharmaceutical companies has helped both create the foundations for future growth and improve the effectiveness and efficiency of their current businesses. LAM seeks opportunities to partner with clients on commercial model innovation, R&D transformation, improved organizational effectiveness and post-merger integration. By drawing on our deep industry experience, cross-sector capabilities and insights, and our global team, we help our pharma clients achieve sustained results.

The Pharmaceutical industry has been one of the most significant enablers of human progress over the last decades. It has lengthened average life spans, improved the quality of life and enabled humans to be more productive. 

In return, pharma was able to get relatively high prices and favourable conditions for its products. Its investments and efforts in R&D and innovation were handsomely rewarded with patent-protected high margin revenue streams. Doctors prescribed drugs – patients, if they wanted to get well, accepted the doctor’s prescription almost without question, and payers footed the bill. So the key to marketing drugs to pay for the next innovation was to focus on doctors. The business was so lucrative that Pharma did not have to impose “lean” practices on its workforce like other industries. 

Pharmaceutical companies are implementing latest technologies to create high levels of productivity and efficiency while maintaining the highest levels of quality. 


Insights


Case Study FARMADEM

A pharmaceutical company with an annual revenue of $450 million a year and a half ago took a decision to review their operation and find ways to become more efficient and productive. The idea of the management was to reduce the turn around time on the production line, increase quality and reduce costs at the same time. They approached us for a consulting program and we started with the performance diagnostic and then ultimately the business process redesign with High Performance Technology.

 

Pharmaceutical companies face a lot regulations so they have a lot of surprise audits during their production process to make sure that the final product is high quality. Our client had to manage every single record of quality control through the production process using many different technologies and the workflow was very complex so we built the primary chain of operations and then integrated various cross-functional areas into that chain from different departments like purchasing, Quality Control, Finance, Supply Chain etc. All this was integrated with High Performance Technology (HPT) and based on the process redesign. After seeing the potential of the program, the client did not just stop there but took an opportunity to go further into integrating the entire organizations on the same platform - HR, Finance, Operations, Marketing & Sales etc.

Results: The client today manages the entire organization on the same platform and has been able to increase the productivity and efficiency levels across the entire organization. The client has achieved the following:

  • Reduced the turn around times which has led the company to save more than 12% in production costs 
  • The quality levels have gone up 
  • Saved more than $500,000 annually in time that was being wasted in meetings and discussions because now with the collaborative platform there is no need to meet every single time for taking a decision
  • Decision effectiveness has gone up significantly - easy to take decision with information available in real time
  • IT costs have been reduced by more than 30%
  • In the last six months the revenues have gone up by more than 20%