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(And, if the product fails, won’t ever be points at all.) If a product does reach the market and demand takes off, then there’s little time to think about growing new or improved process technology. The aim at this stage is to supply as a lot as you’ll be able to as quick as you’ll be able to.
One drug firm had just come to this realization when we studied it. But managers inside the course of-growth group admitted that the time required to develop process technologies and to arrange factories for production usually added a year to product-growth lead instances. Much to our surprise, we found managers with that angle not solely at established drug companies but also at young biotech companies. We have witnessed the identical phenomenon in a variety of other high-tech industries. Because successful products commanded significant price premiums and since manufacturing prices were small relative to revenues, executives did not view, nurture, and manage manufacturing technologies as a strategic functionality. In fact, it isn’t solely attainable to excel at simultaneously creating new products and new manufacturing processes but additionally needed.
Although particular practices in prescribed drugs may be distinctive to the trade, comparable patterns of behavior arise in different industries. There is a pure tendency to postpone dealing with course of expertise and manufacturing points, which seem issues far off sooner or later.