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The Competitive Edge

 

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A leading Indian pharmaceutical company, based in Ireland was due to release a new generic product onto the Italian market. Before the product was due to be launched, it was discovered by the Indian company that they had printed the wrong expiry dates on the blister packs. Subsequently, they needed the existing expiry dates removed and replaced with the valid dates. The decision was taken to contract the repackaging job to both an Italian pharmaceutical company and also to Millmount Healthcare in Ireland. This decision was arrived at for a number of reasons:
  • The Italian pharmaceutical company was perceived to be more competitive in terms of Lead Time than Millmount and with the product already delayed in terms of its release onto the Italian market; they were given the first half of the order to repackage.

  • Millmount Healthcare, however, was seen as more competitive in terms of their price, than their Italian counterparts. The decision was also made to ship the products to Ireland for the second half of the repackaging job.
Once the decision was made to divide the repackaging job evenly between Millmount Healthcare and the Italian pharmaceutical company, both organisations delivered their proposals to the Indian manufacturers.
Millmount decided to cover up the existing faulty expiry date and batch number by darkening the area. They would then print the batch number and the correct expiry dates either side of the darkened area.

The Italian company, on the other hand, decided to replace the faulty expiry dates and batch number with an adhesive sticker stating the correct expiry date. When the Indian manufacturers received both proposals, they accepted that of Millmount Healthcare’s and rejected the Italian pharmaceuticals proposal.

Under the GMP (Good Manufacturing Practice) guidelines, if a pharmaceutical organisation wishes to hide incorrect information on their products, they must completely wipe out that information or darken the area, just as Millmount Healthcare had done. With their proposal rejected, the Italian pharmaceutical company had to return to the Indian manufacturers with a new concept on how to approach the job at hand. Due to the delay caused by their error Millmount Healthcare was competitively in front of their Italian counterparts both on quality and on price, repackaging the product at both half the time and for half the price.