AstraZeneca responds on outsourcing

Anglo-Swedish drug major AstraZeneca is "planning to outsource all its drug manufacturing activities within 10 years," according to a report in the UK's Times newspaper. However, the company has issued a statement clarifying what it sees as "select" comments in an interview with David Smith, its executive vice president, global operations, which was meant to be about how the pharmaceutical industry is looking to other sectors for supply chain practices and philosophies, a spokesman for the company told the Marketletter.

Fully outsourcing supply and manufacturing activities, as implied in the article, is not part of the AstraZeneca strategy. However, it will use outsourcing where there is a sound business case. For example, the firm is currently exploring the manufacture of active pharmaceutical ingredients - the basic chemicals used to formulate conventional medicines.

"The delivery of high quality medicines for patients remains the top priority for AstraZeneca and our global operations will continue to source activities in-house that are critical to keeping connected with the patient and essential to ensuring patient safety. Supply and manufacturing will continue to play an important role in this through delivery of a robust end-to-end supply chain," the company noted.