Pharmaceuticals

Operation profile

The pharmaceuticals industry represents a mix of operations, with production facilities owned by major pharmaceutical firms and independent firms producing generic products and /or brand-name drugs (under license).

The representative operation modeled is an independent plant producing prescription drugs on behalf of brand-name and/or generic distributors. As detailed in the following table, this operation is characterized by:

  • Substantial facility and equipment requirements
  • A workforce weighted toward professional/technical employees, but also including a significant number of both skilled operators and unskilled staff
  • Relatively low energy requirements
  • Modest in-house R&D activities.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Pharmaceuticals

Operation: Pharmaceutical production

Facilities requirements
   Owned industrial site - acres (20,234 m2)
5
   Size of factory - ft2 (6,503 m2)
70,000

Other initial investment requirements
   Machinery and equipment - US $'000
$24,000
   Office equipment - US $'000
$200
   R&D equipment - US $'000
$500
   Inventory - US $'000
$10,000
   Equity financing - % of project costs
50%

Workforce
   Management
7
   Sales and administration
16
   Production/non-dedicated product development
      - Professional, technical
60
      - Operators
22
      - Unskilled laborers
15
   Other
4
 
Total employees
124

Energy requirements
   Electricity: monthly consumption demand - kWh
160,000
   Gas: monthly consumption - CCF (28,329 m3)
10,000

Other annual operating characteristics
   Sales at full production - US $'000
$42,000
   Materials and other direct costs - % of sales
27%
   Other operating costs - % of sales
14%
   Investment in tax-eligible R&D - % of sales
2.5%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Pharmaceuticals
Operation: Pharmaceutical products
North America – lowest cost cities
Country and CityIndex & Rank1
CAFredericton, NB87.33
 Moncton, NB87.34
 St. John's, NL87.45
 Charlottetown, PE87.96
 Halifax, NS88.17
MXMonterrey, NL82.41
 Mexico City, DF83.42
USShreveport, LA94.636
 Baton Rouge, LA95.137
 Savannah, GA95.238
 Montgomery, AL95.439
 New Orleans, LA95.440
 Youngstown, OH95.741
 Lexington, KY95.842
 Mobile, AL95.843
 Omaha, NE95.944
 Gulfport-Biloxi, MS95.945
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide90.725
 Brisbane92.430
 Melbourne91.026
 Sydney91.627
FRMarseille91.628
 Paris92.029
GEBerlin93.232
 Frankfurt93.734
ITMilan90.123
 Rome90.524
JPOsaka93.433
 Tokyo93.835
NLAmsterdam89.921
 Rotterdam89.920
UKLondon92.931
 Manchester88.711
1  Rank among 111 featured cities.

 
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