| OBSERVATION'S |
Co. historically has been involved in generics and considers generics a vital segment of its pharmaceuticals business. "A multicustomer business offers stability and long-term predictability and balances the higher risk, higher reward investments we make with our primary customers on innovator drugs," he says. However, innovator companies are Co.`s major pharmaceutical customers. Generics represent only up to 30% of Co.`s pharmaceuticals business. "We go into generics only when there is a good fit, in technology or raw materials. "And very often, we get into generics in support of our pharmaceutical customers during the later stages of the life cycle of their brand-name products."
A key part of Co.`s service to its innovator customers is developing late-stage options for drugs that are coming off patent. One option is process improvements, which, by lowering API production costs, allow brand-name drugs to be price competitive against generics. Another option is moving production to a country where costs are lower, such as India
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