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IIR Industry Alert: Drug Shortages Spur Outsourcing Agreements

IIR Industry Alert: Drug Shortages Spur Outsourcing Agreements

Business Editors/Health & Medical Writers


Researched by (Industrial Information Resources Inc.; Houston). Every drug manufacturer hopes that its next product out of the pipeline will prove to be a blockbuster. With research & development costs in the multimillions, the arduous clinical trial process to get FDA approval, and the untold pressure to bring a new therapy to market before a competitor unveils a similar product, the drug companies breathe a sigh of relief when their drug hits it big. Profits can run into the billions and the public relations spin offers a form of credibility for future drug launches. But even with all the careful planning and strategy that accompanies each new potential Prozac(R), manufacturers can find themselves in the unenviable dilemma of too many customers and not enough product.

Such is the situation in which biopharmaceutical manufacturer Immunex Corporation (Nasdaq:IMNX)(Seattle) has found itself. The proud parent of ENBREL(R), the rheumatoid arthritis drug, has watched as demand has far outpaced supply. Immunex relies on a single factory in Germany that has been unable to keep up with demand, causing the company to miss out on potentially hundreds of millions in sales. Immunex has projected sales for ENBREL(R) to reach approximately $4 billion in 2005.

Immunex has a variety of production expansion activities underway, including spending $1 billion to renovate and expand one factory in Rhode Island later this year and another by 2005.

For more information on these projects view the entire article at

Established in 1983, Industrial Information Resources Inc. (IIR) is a fee-based leading information source for market intelligence covering the industrial process, manufacturing and energy-related markets. IIR tracks project spending trends in the pharmaceutical-biotech industry and has recently released the 2002 US Pharmaceutical-Biotech Industry Forecast ( For more information on trends and upcoming construction activities in the pharmaceutical-biotech markets as well as other industrial sectors, send inquiries to or visit us at

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