Gotta disagree with you corrchess. This guy is trained his Indian replacements and then was let go. He found a job makig 20% less. I saw on Wall Street Week with Fortune, that a brokerge house now has Indians writing research reports.
What's the difference, most large scale manufacturing do not do their own filling here anyway. They have their product in bulk, frozen and shipped. They can send their bulk frozen and get filled here. If they can air freight bananas they should be able to air freight these product and get here in time for filling.
Generic or not, the oversea contract manufacturer get their instructions here in the US under strict guideline by the client's company's QA/RA/QC people. Their D.O.L. and overhead is significantly lower (CEO's and CFO doesn't get stock options by the way they are on salary only).
You may be correct for first line, new biologicals. What I was addressing was "generic" equivalents to biologicals, which is a really hard issue.
When production margins are high, labor costs are not as big a deal, and you want your plant located near centers of excellent in the craft, wherever that may be - in the US, or offshore. In biotech, so far that's more onshore than off, but there are centers of excellence in other countries for sure.
FDA will be invited to oversea site operation. The same condition for equipment and process validation has to take place oversea before the FDA will approve the manufacturing facility. Currently, the $100 Million contract manufacturing facility is being designed and build to cGMP to meet the US FDA and European guidelines.
So, if we can do it in the US. They can also do it overseas. There is nothing magical about it.
Perhaps those research reports would be just as useful if written by middle schoolers at study hall. There have been a lot of analysts who have not been worth their spittle for a long time, and many of them can still be seen on CNBC or other such financial channels. Some of these goofballs are so clueless it is just sad.
It is always hard to see jobs go overseas. But that is a natural progression that has occurred as a result of the ability to communicate instantly and to haul big stuff really fast (jumbo jets). The world is a big place, and there are a lot of people who need good jobs all around it. It's better for us all if more of those good jobs get created than to try to hang on to ones that are becoming commodities.
It's a tough world, and no one says things are easy or fair. Some days it's not even much fun; today was one of those for me. However, despite that, I try to be optimistic when looking towards the future in areas that I believe continue to have great promise. Biotech remains one of these.
As I have mentioned earlier on my previous posting, their are contract manufacturing plant currently being built in ASIA to produce biotech product ( both bacterial and mammalian). They have a cheaper labor rate as everyone claim. As usual, Direct Operating Labor contribute to the cost of manufactured goods. Don't count on Biotech too long as it will be going toward the fate of the semiconductor very very soon.
In about 1996 a book, entitled The Manufactured Crisis, was written by Bruce Biddle and David Berliner in conjunction with their work through the Sandia Test Labs. The book basically said our panic over American schools was overblown and manipulated for political purposes since the late 1980's. One key point made was charts showing the % of Americans needed to fully handle the science/mathematics portion of our economy to include high tech/biotech etc. Historically this was about 4% of the workforce leaving the other 96% (less structural or short term unemployment) to find jobs elsewhere. That portion is what I fear is the real economy and it is rapidly turning into service rather than higher paying production. (Not counting finance, medical etc. which make up a small portion of this service economy). This is what worries me about our future--so to coin a talking head: What Say You?