Definition
- A value chain is a framework which highlights core activities in
the development of a product or service offering.
-
It refers to the value creation derived from the application of differentiated
competencies in the execution of the core activities; and in this manner distinguishes
value-added activities from those
which are more common (commoditized) and therefore less valuable.
Bio-pharmaceuticals / biologics
The Value Chain for biopharmaceuticals / biologics incorporates six basic
categories of activity which represent opportunities for value creation:
- Product Conceptualization / lifecycle management capabilities
- Early stage research and development
- Scale-up and manufacturing
- Drug Delivery
- Preclinical and Clinical Studies
- Sales and Marketing
Value Chain Opportunities
The Value Chain for biopharmaceuticals presents several opportunities for
value creation – of which SBC focus on items 1-3 in the graph.
- Cell culture expertise, including choice of host cell or vector: - can
influence virus yield.
- Virus strain expertise: - can influence probability of optimizing growth
conditions and fit with defined cell line.
- Cell cultivation strategy: - can influence yield and thereby cost of production.
- Value-added formulations and delivery technology: - can provide patent
protection and influence scale of product uptake.
- Capacity optimization and regulatory expertise: - can influence cost /
speed of production.
- Knowledge of regulatory requirements: - such as documentation, customer
requirements and competitor challenges can facilitate protocol/study optimization.
- Knowledge of regulatory requirements, regulatory authorities, opinion leaders,
and submission protocol: - can expedite dossier development, submission and
approval.
- Legal expertise: - can facilitate rapid market entry / optimize cost of
goods sold.
- Marketing expertise, sales force preparedness, and customer/government
contacts: - can expedite product uptake.
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