9. The Pharmaceutical Industry - PMMI

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Blister and Cartoning line IMA C90 1 Italy Blister and Tray Sealing Line IMA C62 2 Italy Blister Machine CAM 2 Italy Most of the equipment used at the plant is reaching obsolescence, and all of the machines will need to be replaced over the following 10 years. An important problem with the machines is that they are operated with computer systems and hardware that are basically obsolete and expensive to replace. This points to the need to purchase new equipment, as retrofitting existing machines is not considered a cost-effective alternative. With future equipment selection, the company will seek equipment that is less dependant upon other systems and machines that are easier to program. D) Last Packaging Machinery Purchase The most recent purchase of packing machinery was in 2007, when the company invested more than US $3 million on the purchase of the following equipment: Machinery Brand Country Cost Weight verifier machine Mettler Italy N.A. Labeling machine IMA or Neri Italy N.A. E) Future Packaging Machinery Ordering Plans. The company has a budget of more than US $4.5 million for the purchase of packing machinery during 2008, and a similar amount for the same purpose in 2009. The next purchases will follow the order indicated in the table: Machinery Units Origin Estimated Budget Blister and packaging line for capsules and tablets 1 T.B.D US $1.8 million Mixers T.B.D T.B.D T.B.D Blister line T.B.D T.B.D T.B.D Ampoules filling line T.B.D T.B.D T.B.D F) Purchasing Policies and Financial Arrangements The selection of new machinery will begin with the technical phase, during which the company will define equipment options and arrange for visits to evaluate the proposed machinery in operation. Once equipment options are defined, a final decision is made by the management of the company. G) Factors That Influence Purchasing Decisions 1. Developed specifically for the desired application. 2. Ease of operation. 3. Production speed and versatility. 4. Efficiency. H) Comments on Preferred Brands and Existing Business Arrangements With Packaging Equipment Suppliers The company prefers European machinery. However, the appreciation of the euro is making that equipment very expensive when compared to other options. The firm mentioned that the total cost of ownership between European and North American machines might be the same over the long run, considering that the service of European machines is very expensive and some times difficult to arrange. 189
The company mentioned that pharmaceutical patent holders are the most important clients for packing machinery manufacturers, as producers of generic drug products use very simple and inexpensive machinery. The company made the following evaluation on their perception of suppliers based on country of origin: Origin Technology Flexibility Service Price United States Average Very Good Very Good Good Germany Good Good Good Very Poor Italy Regular Good Good Average Spain Poor Poor Poor Poor France Average Average Poor Average Japan Very Good Good Good Poor The company noted that German machinery is extremely expensive, and not only because of the current exchange rate of the euro. Machinery from that country has traditionally been priced very expensively. I) New Origin of Suppliers from Asia Sanofi-Aventis said that it has been contacted by suppliers from Asia, including equipment manufacturers from China, India and Korea. The company also said that it is aware that some of its traditional suppliers, including Fette, IMA and Ullman, are assembling their machines in Asia. J) Specific Interest The company is interested in reviewing information about packing machinery suppliers specializing in the pharmaceutical and cosmetics markets. K) Contact Information Company Name: Sanofi-Aventis Contact: Mr. Ignacio Dapic / Jorge Arrieta Ponce Position: Maintenance Manager / Maintenance Leader PPU Solids Address: Acueducto del Alto Lerma No. 2 Ocoyoacac, Edo de México, 52740 Telephone: (52) 5484 4400 ext. 4708 / ext. 4760 or (728) 282 8760 Fax: (52 728) 282 8720 Mail: ignacio.dapic@sanofi-aventis.com jorge.arrieta@sanofi-aventis.com Web page: www.sanofi-aventis.com.mx 190
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Page 5 and 6: Astra Zeneca only provided comments
Page 7 and 8: Carton Machines CAM 1 Italy 21 Plas
Page 9 and 10: J) Comments Related to Asian Packag
Page 11 and 12: Liquid Filling Machine 180f/m IMA 1
Page 13 and 14: A) Company Description Russek-Loeff
Page 15 and 16: Origin Technology Flexibility Servi
Page 17: A) Company Description Sanofi Avent

9. The Pharmaceutical Industry - PMMI

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