25 Global Locations Analysed to Identify the Cost-Effective Pharma Manufacturing Plant

Where should a Global Pharmaceutical Company look to for manufacturing pharma products?

Data shows that top pharmaceutical companies across the globe are looking for the least expensive manufacturing plant. In this article we have identified the ideal destination for manufacturing affordable medicines and formulations.

With the costs of healthcare increasing and the demand for generics and low priced medicines on the rise, there is a need for cost-comparative analysis while deciding the destination for pharma manufacturing. One of the top influencing factors that help pharma companies decide on the location for manufacturing is the geographical location.

Pharma Manufacturing Plant Location

Location of a pharma manufacturing plant plays a vital role in the pharma industry. Key players in the Pharma business around the globe are keen to outsource their pharma manufacturing requirements to other countries considering the fact of cost-analysis. Price control for prescription drugs

Factors involved in the Cost-Comparative Analysis

Apart from the location there are some other variables involved in the cost analysis while deciding about the best place for pharmaceutical manufacturing unit. These factors vary in each geographical region based on the availability of resources and support services.

Some of the important factors that are taken into account for the cost-comparative analysis made to decide the best pharma manufacturing plant destination are

  • Labour costs
  • Skilled work force
  • Real Estate
  • Transport facilities
  • Pharma Manufacturing unit construction
  • Infrastructure cost
  • Operating costs
  • Policies and Regulatory issues
  • Taxes
  • Incentive programs and Government initiatives

Key factors identified for least expensive Pharma Manufacturing Plant

Based on the above key factors, some of the least expensive places to start a pharma manufacturing plant are identified in the report provided here. As per The Boyd Company that has presented a data about the annual operating costs involved in more than 25 pharma manufacturing hubs of various countries, India is found to be least expensive and the best pharma manufacturing plant destination.

Table of 25 manufacturing hub and their respective total annual operating costs:

Biomanufacturing Hub Total Annual Operating Costs
Copenhagen, Denmark $58,700,079
Zurich/Basel, Switzerland $58,236,969
New York, NY $55,485,395
Paris, France $53,872,462
Frankfurt, Germany $50,462,680
Bay Area, Northern CA $49,111,676
Boston, MA $49,024,219
Melboume, Australia $48,952,527
New Brunswick/Princeton. NJ $48,910,084
Chicago, IL $48,286,151
London, United Kingdom $48,232,030
Tokyo, Japan $44,550,756
Philadelphia, PA $44,474,797
LA/San Diego, Southern CA $44,470,599
Montgomery County, MD $43,876,417
Dublin, Ireland $43,746,361
Seattle, WA $42,699,339
St Louis, MO $42,073,992
Singapore/Jurong East, Singapore $41,050,215
Pittsburgh, PA $40,887,260
Denver, CO $40,824,712
Austin, TX $39,429,433
Raleigh/Durham, NC $37,291,066
Tel Aviv/Petah Tikva. Israel $35,919,434
Bangalore India $13.985.300

The data shows that Bangalore, India is one of the cheapest pharma manufacturing destinations at approx. $14 million per year compared to approx. $58 million in Copenhagen, Denmark.

Medopharm has a manufacturing unit at Malur, Bangalore, Karnataka apart from its two plants in Chennai, Tamil Nadu.

The Malur plant is spread over 2 acres with a built-up area of 4500 sq. meters for production. The plant is WHO cGMP certified and manufactures finished dosage forms of tablets, capsules, and formulations. With an annual production capacity of 6000million units of tablets and 200 million units of capsules, this manufacturing unit caters to domestic and global pharma distribution of Medopharm.


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