Transformation Program: Identifying COGS Reduction Opportunities in Top 20 Molecules for a Global Leader in Generic and Biosimilars

SITUATION

• The top 20 molecules of a global leader in generic and biosimilar medicines exhibited a high degree of diversity in terms of supply chain set-up, external supply strategies and bulks in use for the same product. Hence, large internal variations in COGS existed
• Genioo was hired to identify the optimal supply chain set-up for prioritized molecules; quantify the potential cost savings and additional market opportunity from its execution; and identify the main requirements to realize it

SOLUTION

• Collected data on top molecules and interviewed regional team and prioritized five molecules based on size of opportunity for detailed analysis
• Developed opportunities using standard levers and identified key enablers and quantified the main ones with respective execution activities
• Assessed resource and capability requirement for execution phase and high-level investment need and designed execution phase governance and decision-making set-up

IMPACT

• Provided a diagnostic that significantly increased visibility and transparency for top 20 molecules
• Performed an opportunity assessment for selected molecules, including the investment required the following year and high-level demand