Life Sciences Blog

3 Trends Driving Equipment Acquisition

3 Trends Driving Equipment Acquisition


Observations from the recent CPhI and InformEx Conference

The education sessions held during the 2017 CPhI and InformEx conference revealed a number of industry trends putting pressure on organizations to upgrade and acquire new equipment.

1) The unending quest for more effective, cost-efficient production

Amid growing cost pressures, manufacturers are constantly looking for ways to lower costs. One common approach is upgrading equipment to enhance the production process, thus generating more output and achieving economies of scale. Another strategy gaining traction is the use of 3D printing to drive down manufacturing costs.

2) Extensive – and varied – regulation

It is no surprise that products slated for pharmaceutical use have vastly different GMP standards than those designed for industrial use. It is up to manufacturers to understand the intended use of each product they produce and to ensure the correct GMPs are in place to meet the guidelines for that product category. For example, a regulation that requires equipment be specifically designed to facilitate cleaning and maintenance to avoid contamination may force companies to make upgrades to their existing facilities.

3) Growing prevalence of continuous manufacturing

Continuous manufacturing or “flow chemistry” is becoming increasingly popular in pharmaceutical ingredient manufacturing. Some benefits of this methodology include reduced development time, improved process control, and lower production costs – but companies looking to access to these benefits may be met with a considerable up-front investment. Common equipment used in continuous flow manufacturing includes:

  • Tube Reactors
  • Industrial Flow Reactors
  • Selective Laser Melting
  • Mixers
  • Catalytic Oxidation Equipment

Recognizing that this is a very capital-intensive business, companies often turn to leasing or financing for equipment acquisitions to help spread costs out over time, avoid large budget spikes, and manage cash flows as revenues ramp up.
At First American, we are focused on helping companies navigate these financial challenges as they grow. 

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