Lundbeck manufacturing cost achievements rewarded

Danish drugmaker Lundbeck A/S (LUND: DC) says it has crowned six years of focused efforts on productivity improvements with a silver medallion in the prestigious Shingo competition. This is the first time a European company has been awarded the silver medallion.

The honor is given in recognition of Lundbeck's work to introduce new production principles that have led to significant improvements in business productivity. Lundbeck has succeeded in cutting the cost of internally produced products by roughly a quarter compared to 2006 levels.

The company believes it has beaten its peers and saved 2 billion Danish kroner ($341 million) since 2006 by means of in-house competitive improvements that have allowed it to end all outsourcing and to compete with Chinese producers, according to a Financial Times report.