Pfizer considers outsourcing manufacturing to India, China
US-based pharmaceutical giant, Pfizer, is looking to cut costs by outsourcing as much as 30 per cent of its manufacturing to facilities in Asia, particularly in India and China.
Pfizer now outsources about 15% of its manufacturing capabilities. The company aims to double that figure, as part of cost-cutting measures. The drug major while announcing the plan also said it would expand its research and development investments in China, India, Japan and South Korea.
The company, which has major operations in New Jersey, announced earlier this year it would save USD 2 bn by cutting its global work force by 10%, or about 10,000 jobs. The company also believes that Asia was key to the company because the region’s pharmaceutical market would grow to USD 200 bn by 2017.
Pfizer, which spent USD 7.6 bn on research and development last year, currently has 80 research studies under way in Asia. The outsourcing plans follow Pfizer’s announcement at the beginning of the year that it would close manufacturing sites in Brooklyn, New York and Omaha, Nebraska and sell a third manufacturing site in Feucht, Germany.
MindTree to venture into medical electronics
FIT and R&D services provider MindTree Consulting, which announced a major organisational restructuring recently, plans to expand its business line to tap new markets especially medical electronics, avionics and defense.
The R&D services, so far addressed industries like data networks, cellular networks, voice networks, telecom solutions, computing and storage systems, consumer appliances and industry systems.
The company, whose topline was INR 590.35 crore last fiscal, derives close to 75% of its revenue from the IT services with the balance coming from the R&D services. In the IT services, the company specialises in domains such as capital markets, manufacturing, financial services and travel and transportation.
MindTree is targeting USD 1 billion in revenue. Given an annual growth rate of 38 per cent, the target may be reached by 2014. The company is also keen on acquisitions. MindTree, which was listed on the BSE and NSE earlier this year, has a revenue target of $178 million to $180 million for the current fiscal, a growth of 36 per cent at the higher end. About 41.48 per cent of its shares are held by a clutch of financial institutions and VC firms.
IBM eyes USD 2 bn pharma, health services market
IBM is targeting multi-billion dollar health business opportunities in India. The company has plans to tap opportunities worth USD 1 billion each in the Indian pharmaceuticals and health service segments over the next 3-4 years.
It is looking at providing a range of IT solutions for patient record management and creating a vault of information for doctors, patients, nurses and insurers as well. In India, the integration of health information and data security itself constitutes almost 50% of the business opportunity in health services. This will also mean providing integration of small clinics with larger hospitals. The company is also working on a separate track for developing markets like India where there is a lack of proper networking in the health set up. For this, IBM is working on a mobile technology to enable wireless connectivity through personal digital assistants (PDAs) and laptops for all hospital personnel.
They are also developing censors, where it will be possible to trace any error while admi