6 leading pharma players join forces to beat costs

pharma largeSix leading companies from the pharmaceutical industry have decided to join forces to beat cost pressures. While on the one hand being strong competitors, they on the other hand decided to get together and share best practises in “a bid to improve efficiency and  bring down rising operation costs.”

This article was brought to our attention by one of our readers; thanks for sharing this example with us, Aravind Ananthakrishnan

We are talking about Lupin Pharmaceuticals, Aurobindo Pharma, Zydus Cadila, Orchid Chemicals  and PharmaceuticalsDr Reddy’s Laboratories and Ranbaxy Laboratories, together generating annual revenues of more than €6 billion euro. The collaboration gave themselves a name: LAZORR.

In the first months they have learned many lessons from each other, for instance:

  • They used Ranbaxy’s best case of buying power from India and so cutting on the energy bill.
  • When visiting each others plants, they saw Orchid using a condensate recovery system in their boilers, which cut down water usage.
  • From Ranbaxy, they learned to use poweroperated boilers instead of steamoperated ones, increasing efficiency.
  • They joined forces on procurement, such as buying crude oil. “Procurement calls are being taken on the basis of our discussions and collective understanding of the market,” says H.T. Patel of Zydus Cadila, who heads LAZORR’s purchase and procurement platform.
  • They also joined forces to see trends coming, looking out of the industry borders itself.

More examples can be found in the original article at Business Today or download a copy here.