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The Pharmaceutical Industry
6.1. Industry
Argentina's pharmaceutical industry includes 150 laboratories, and represents a very dynamic and competitive industry. Argentine pharmaceutical companies dominate 70% of the market. Top players include Laboratorios Roemmers and Laboratorios Bagó Pharmaceuticals are available in various presentations in Argentina, such as solids, semi-solids, injectables, liquids, etc. During 2007's first two quarters, the pharmaceutical industry grew 18.5% from 2006. Further, internal demand increased 16.1%, and exports increased 39.5% during 2007. The industry's sales figures continued expanding throughout 2007. During the fourth quarter of 2007, pharmaceuticals in major demand included those for digestive problems (USD $103 million – 17.3% of the total market), followed by nervous system products (USD $102 million – 17.2% of the total market), infection treatment (USD $76 million – 12.8% of the total market) and cardiovascular treatments (USD $74 million –12.3% of the total market). These four groups encompass 59.6% of pharmaceutical sales in Argentina.
Sales by leading firms, (expressed in millions of U.S. Dollars) in Argentina's food industry follow:
Units Sold
Market Share
GLAXOSMITHKLINE CH
GLAXOSMITHKLINE PH
MERCK SHARP DOHME
ALTANA PHARMA S.A.
SANDOZ S.A.
Source: IMS
6.3. Top Products and Their Packaging Needs
Eighty percent of pharmaceuticals sold in Argentina use blister packaging. Based upon their
composition, they are packaged as follows:
Product Package
Liquids
Blisters in cardboard cases
Plastic tubes in cardboard cases
6.4. Company Profiles
ASTRAZENECA DE ARGENTINA S.A.
Industry: Pharmaceutical Sub-industry: Respiratory,
gastrointestinal and cardiovascular medicine.
Province of Buenos Aires, Argentina
potential: Specific business
Tablet packing machines and case
packing machines for solids
A) Company Description
Of Anglo-Swedish origin, Astrazeneca started operations in Argentina in the 1960s. The
company has a production and packing plant in the province of Buenos Aires.
The company is internationally regarded for being in the forefront of drug research and
development in the areas of oncology, and respiratory and nervous systems.
Globally, the company's annual sales reached USD $8.5 billion. Astrazeneca is publicly traded
at Dow Jones Sustainability Index (Global and European), as well as in the FTSE4Good Index.
B) Main Products Produced and How They Are Packed
Arimidex, Belozok, Nexium, Iressa, Blister (PVC / Aluminum), Yectafer,
Xilocaína, Symbicort, Tomudex
Pomes, Plastic container,
(Cream/ointment)
Liquid (syrup, drops)
Spirocort, Naropin
Glass bottles, plastic caps, millboard case
C) Installed Packing Machinery
The firm has various packing lines. The average age of installed machinery is seven years.
Astrazeneca features technical staff to perform machinery maintenance, internally.
Information on the most relevant machinery installed at Astrazeneca facilities is as follows:
Current Machinery Used
Case machine (solids)
Filling machine (semi-solids) Tonazzi
Case machine (semi-solids)
Filling machine (liquids)
Case machine (liquids)
Labeling machine
Labeling machine
D) Last Packaging Machinery Purchase
The last machinery purchase took place in November 2007. The company acquired an Italian labeling machine manufactured by Neri, and paid USD $100,000 for the equipment. Previously, the firm had purchased a casing machine, also of Italian origin, manufactured by CAM.
Machinery
Cost (Approximate)
Labeling machine
E) Future Packing Machinery Ordering Plans, 2008-2009
The firm has a budget of USD $1 million for new machinery purchases. Astrazeneca plans to
buy one or potentially two blistering machines to augment current tablet packing capacity.
However, a date for these purchases has not yet been determined. The main driver for
procurement is to increase production.
Machinery
Reason for
Estimated
Purchase
Machine (tablets)
F) Purchasing Policies and Financial Arrangements
Packaging machinery is bought directly from OEMs. The manufacturer is responsible for the equipment's installation and for the provision of training. Technical staff performs maintenance internally.
Astrazeneca's headquarters has global agreements with some OEMs. Company subsidiaries
develop machinery investment plans, which are submitted for review. Usually, well-justified
investment plans receive concurrence from Astrazeneca's headquarters. In other words, the
need for machinery and the selection of suppliers is conducted at the subsidiary level, once the
machinery investment plan has been approved at headquarters.
Current procurement is conducted in cash, directly from the OEM. However, company
representatives indicate that OEM financing is preferred.
G) Factors that Influence Purchasing Decisions
1. Pricing. 2. Flexibility/versatility. 3. In-country after-sales support. 4. Brand recognition. 5. Dependability.
Reportedly, company representatives have a preference for Italian and German brands. However, pricing tends to be an impediment in acquiring European technology, as it is one of the main elements of the procurement equation.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers
At headquarters, Astrazeneca has global agreements for company plants in Europe and the United States, and not for Latin American subsidiaries. Astrazeneca Argentina has no limitation for supplier selection. The German brand Bosch is the company's top choice. It was also noted that while German
technology has become more flexible in recent years, Italian competitors are very strong commercially and provide support to their local distributors or representatives. Astrazeneca's machinery evaluation based on the country of origin is as follows:
Technology
Flexibility
High / expensive
High / expensive
High / expensive
I) Trade Show Attendance / Trade Publication Information
The company develops a trade events calendar for the pharmaceutical and packaging
industries, most of which takes place in Europe. Information on new machinery developments
is usually received through manufacturers or agents.
J) Specific Interest
The company is interested in receiving information on the following machinery:
• Casing machines for solids.
• Tablet packing machines.
K) Contact Information
Company Name:
ASTRAZENECA Argentina.
Eng. Horacio Temchesen
Jefe de Ingeniería Industrial (Chief of Industrial Engineering)
Address: Argerich
(B1706EQL) Haedo Pcia. de Buenos Aires, Argentina
Telephone:: 54-11-4650-4071 E-Mail:
Website: www.astrazeneca.com
LABORATORIOS ABBOTT S.A.
Industry: Pharmaceutical Sub-industry:
Nutritional, medical, diagnosis and pharmaceutical products
City of Buenos Aires
USD $80 million (+)
potential: Specific business
Case packing machines, wrapping
machines, liquid filling machines, powder filling machines.
A) Company Description
Abbott opened its first branch office in Argentina in 1943. The firm currently employs 500
people. The firm features a manufacturing plant in Florencio Varela, on the outskirts of Buenos
Aires. Its main corporate offices are located in downtown Buenos Aires. In Argentina, Abbot
encompasses four divisions covering nutritional, medical, diagnosis and pharmaceutical
products.
B) Main Products Produced and How They Are Packed
Abbot's most relevant products are as follows::
Nutritional complex
Blood quality enhancer
Blister and carton box
Blister and carton box
Neuronal disorder medicine
Blister and carton box
Glass bottle and carton box
C) Installed Packing Machinery
At Abbott's plant, machinery from the United States, Canada and Europe coexist. More than
70% of the installed machinery was manufactured in the United States. The most relevant
brand names include Hayward, Pneumatic Scale, and Pillar Technology, from the United
States,. and Kalish, from Canada. The average age of Abbott's machinery is five years.
Skilled technicians perform maintenance internally. However, on occasion, the company
outsources specialized maintenance for serious machinery breakdowns.
Current Machinery Used
Tablet filling machine
Bottle/flask capping
Cap sealing machine
Blistering machine
Case packing machine
Labeling machine
Liquid filling machine
D) Last Packaging Machinery Purchase
The last piece of equipment procured by the company was a sealing machine made by U.S.
manufacturer Pillar Technology. The purchase took place during the first quarter of 2008.
Machinery
Cost (Approximate)
Pillar Technology
E) Future Packing Machinery Ordering Plans, 2008-2009
Future purchases include a used granulating machine of Italian origin, at an estimated price of
USD $335,000. The price for a new granulating machine is in the million-dollar range.
Additionally, Abbott plans to acquire a blistering machine from Taiwan at a cost of
USD $140,000.
Abbott features an annual budget of USD $1 million for new machinery purchases. Usually,
machinery procurement is driven by the need to increase productivity.
The company exports 80% of its products; the remaining 20% is distributed to the local market.
Increasing exports entail procurement of new machinery to fulfill the external demand.
Machinery
Reason for Purchase
Estimated
Granulating machine
Increase production
Blistering machine
Increase production
F) Purchasing Policies and Financial Arrangements
Abbott Argentina determines the need for new machinery. Local professionals analyze market
options for new equipment, determine the machinery's strengths and weaknesses, and report
back to Abbott in the United States for procurement authorization. Machinery suppliers must
contact Abbott Argentina to make product introductions.
The company makes product selections after seeing the machinery working. Subsequently,
technical characteristics, pricing, and delivery timeframes are analyzed and reported back to
Abbott headquarters for concurrence.
Abbott usually conducts cash transactions for new machinery. The firm does not opt for trade
finance. Procurement is performed directly from OEMs.
G) Factors that Influence Purchasing Decisions
1. Machinery quality. 2. Speed and productivity. 3. Rapid assembly. 4. Technical support. 5. Compliance with safety standards.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers
Although company representatives indicate no preference for certain brands, models or country
of origin, most of their machinery and equipment is of U.S. origin. To their disadvantage, in-
country after-sales support for U.S. machinery is deficient.
There are hardly any local representatives with parts in stock, thus replacement parts arrive several weeks after the machinery breaks down, which is extremely inconvenient to the company. Abbott personnel suggest that U.S. firms should have a stronger presence in local industry shows. European competitors actively participate in these shows, and strongly support their local representatives by setting up business meetings with potential clients and making product presentations. Reportedly, the company lacks purchasing agreements with suppliers. A company representative points out that European and Asian machinery suppliers have contacted them to make product introductions. The latter have demonstrated their ability to manufacture high-quality products. Further, at Abbott, China and Taiwan are regarded as potential future quality suppliers of machinery. Abbott's machinery evaluation based on country of origin is as follows:
Technology
Flexibility
Canada Good Good
I) Trade Show Attendance / Trade Publication Information
Abbott representatives indicate that they do not attend industry shows abroad unless a
manufacturer invites them. Company specialists attend the Tecnofidta fair and other shows in
Buenos Aires. The firm subscribes to Argentina's
Industrial Guide.
J) Specific Interest
Abbott is interested in receiving information on the following machinery:
• Case packing machines
• Powder filling machines
K) Contact Information
Plant
Laboratorios Abbott S.A.
Eng Hector Barbeito
Position: Project
Ruta 2 Km 38 Florencio Varela Pcia. de Buenos Aires, Argentina
Telephone:: 54-11-5776-7200 E-Mail:
[email protected] Website: www.abbott.com
DENVER FARMA S.A.
Industry: Pharmaceutical Sub-industry:
Generic drugs, OTC and specialty pharmaceuticals.
Province of Buenos Aires, Argentina
potential: Specific business
Filling and case packing machines for
solids, filling and case packing machines for semi-solids (pomes), liquid and injectables filling machines.
A) Company Description
Denver Farma was established in 1989. The company's core business is generic drug
production. The firm manufactures and distributes analgesics, anesthetics, and influenza
medicine, among other OTC drugs. The company has a plant in Munro, province of Buenos
Aires. It plans to expand operations to a recently built facility in Pilar, an area with significant
industrial activity. Denver's fast-paced growth has led to an increase its workforce by 300% in
the last two years.
B) Main Products Produced and How They Are Packed
Information on the company's most relevant products is as follows::
Solids (Tablets and ampoules) Difenhidramina, Naloxona,
Blister (PVC / aluminum),
Alprazolam, Alendronato,
Mebendazol, Amlodipina, Dentromin, Espironolactona, Furosemida, Tacicul, Gliximina, Glucogood, Diclofenac, Panclo
Semi-solids (Creams)
Ipox, Denvercrem, Sinfung,
Pomes, plastic container,
Diclofenac, Crema de
Lidocaína, Biguanex,
Drop bottle, plastic cap, and
Rifamicina, Alager, Oftalook,
Timolol, Tobrabiotic, Budesonida
Injectables Densulin,
Bottle, ampoule, millboard
Diclofenac, Panclo,
Rifamicina, Haloperidol,
C) Installed Packaging Machinery
Denver Farma features various filling lines grouped in product categories. As per Good
Manufacturing Practices (GMP), psychotropic production is separated from the other products
that it is manufacturing. Installed machinery is an average of 11 years old.
Information on the most relevant installed machinery is as follows:
Current Machinery Used
Blister machine (solids)
Case machines (solids)
Filling machine (semi-
Boisoit 1 India 2 90%
solids) Case machines (semi-
Cartopack 1 Germany 10
solids) Filling machine (injectables)
Inspecting machine
Brunetti 1 Italy 6
(injectables) Filling and casing machine
(pomes) Labeling machines (bottles)
D) Last Packaging Machinery Purchase
The most recent machinery purchase took place in early 2008. Denver bought a filling and casing machine of Indian origin at an estimated price of USD $500,000. Company representatives do not wish to disclose the name of the manufacturer. In 2006, the company purchased a filling machine for semi-solids, also from India.
Machinery
Cost (Approximate)
Filling and casing
E) Future Packing Machinery Ordering Plans, 2008-2009
The firm features a machinery purchasing budget of USD $1.5 million. As previously stated, Denver is concluding the construction of a new facility that will feature new machinery for increased production. One of the firm's major goals is to automate production processes that are currently being performed manually. Denver plans to purchase the following machinery:
Machinery
Reason for
Estimated
Purchase
Filling Machines
Expansion to a new
plant and automation
Filling machines
Expansion to a new
plant and automation
Expansion to a new
plant and automation
F) Purchasing Policies and Financial Arrangements
Purchasing decisions are made in Buenos Aires, and the company buys directly from OEMs. Denver offers a significant business opportunity as it is building a new plant that needs to be up and running as soon as possible. Reportedly, company personnel are seeking to identify potential suppliers to further evaluate machinery options.
Usually, the company performs cash transactions on machinery purchases and, on occasion, through supplier financing. The firm is currently considering machinery acquisition through leasing. Company owners handle all machinery related investments.
G) Factors that Influence Purchasing Decisions
1. Performance. 2. In-country technical support. 3. Brand recognition. 4. Versatility. 5. Flexibility. 6. Pricing.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers
The company looks up to European suppliers of machinery, particularly those of Italian and
German origin. However, the high nominal value of machinery has become an issue for the firm.
Therefore, it has started to buy from Indian manufacturers at very competitive prices.
Company representatives lack knowledge on U.S. manufacturers of packing machinery.
Denver's machinery evaluation based on country of origin is as follows:
Technology
Flexibility
High / expensive
good Good Good Excellent
High / expensive
I) Trade Show Attendance / Trade Publication Information
Company staff attend international trade shows, such as Interpack in Germany. However, they
are focused on local shows.
Information on new products and technology is obtained from OEMs or distributors.
J) Specific Interest
Denver would like to receive information on the following machinery:
• Filling and Casing Machine for solids.
• Filling and Casing Machine for semi-solid substances (pomes).
• Filling machines for liquids and injectables.
K) Contact Information
Company Name:
Laboratorios DENVER FARMA S.A.
Dr. Daniel Fornari
Gerente de Manufactura (Manufacturing Manager)
Natalio Querido 2285 (B1605CYC) Munro Pcia. de Buenos Aires, Argentina
Telephone:: 54-11-4756-5436 E-Mail:
[email protected]
Website: www.denverfarma.com.ar
LABORATORIOS ROEMMERS S.A.
Industry: Pharmaceutical Sub-industry:
Antibiotics, pediatric line, psychiatric line, diabetics line, cardiology medicine.
City of Buenos Aires
USD $350 million
potential: Specific business
Blistering machines, case packing
machines, liquid filling machines.
A) Company Description
Roemmers was established in Argentina in 1921. Roemmers' core business is related to
prescription drugs. The company currently heads the marketplace ranking in pharmaceutical
laboratories. Roemmers' annual sales reached USD $350 million in 2007. The company
currently employs more than 1,000 people.
The company has three production plants for different product categories. One is for non-
antibiotic injectable liquids production, the second plant produces antibiotics, and the third plant
produces non-antibiotic solids. The latter was inaugurated in 2002, and has 220,000 square
feet of production space and an annual production capacity of 57 million units.
B) Main Products Produced and How They Are Packed
The Laboratory's main products are as follows:
Blister and carton box
Analgesico y antiinflamatorio
Blister and carton box
Blister and carton box
Blister and carton box
Antihistaminic Frenaler
Blister and carton box
Blister and carton box
Blister and carton box
Blister and carton box
Antispasmodic Taural
C) Installed Packing Machinery
Installed machinery has an average age of eight years. The company has acquired European
machinery mainly from Italy and Germany. Some of the featured brands include IMA,
Marchesini and Neri from Italy, and Fette from Germany. Roemmers also has machinery from
the United States, Argentina, Japan, Spain and Belgium.
Maintenance is performed internally. The company needs to purchase high-quality machinery
due to its continuous production.
Information on Roemmers most relevant machinery is as follows :
Current Machinery Used
Blistering machines
Blistering machines
Case packing machines
None-sterile liquid filling
machine Sterile liquid filling machine N/A
Tablet filling machine
Tablet filling machine
Tablet filling machine
Labeling machine
Granulating machine
D) Last Packaging Machinery Purchase
The last two machinery purchases took place recently. In 2007, Roemmers acquired a tablet
filling machine manufactured by Courtoy of Belgium (price: USD $900,000), and a Mediseal
case packing machine from Germany in January 2008 (price: USD $1 million).
Machinery
Cost (Approximate)
Tablet filling machine
Blister and case
E) Future Packing Machinery Ordering Plans, 2008-2009
The two main drivers for machinery procurement are increased production and new product
launches. Reportedly, Roemmers has experienced sustained growth since 2003. As a result,
machinery purchases are likely to continue as the company's exports and local sales continue
to expand.
Roemmers' staff reports that the 2008 budget is still to be approved. Purchasing needs could
vary between quarters, and could be affected by several variables, such as strategic
partnerships with other pharmaceutical laboratories, new product launches, an M&A by
Roemmers over another firm, increasing external demand, etc. That said, Roemmers'
packaging machinery purchases are rarely under USD $1 million.
Company representatives are receptive to receiving information from new suppliers in
anticipation of future machinery purchases.
Machinery
Reason for
Estimated
Purchase
F) Purchasing Policies and Financial Arrangements
Roemmers purchasing decisions are made at its Buenos Aires office. Usually, procurement of
machinery is channeled through local distributors or representatives of foreign OEMs that have
solid technical knowledge, very good after-sales support and spare parts in stock.
The company analyzes the technical characteristics of prospective machinery. Subsequently,
Roemmers staff contacts current suppliers and also seeks new vendors at international industry
fair-trade shows. Further, they consult with other laboratories on the latest machinery
technology in use.
The company then solicits commercial references and visits facilities where the machinery is
being used. Vendors' quotes are jointly analyzed by the firm's procurement and financial
departments. Subsequently, Roemmers personnel hold follow-up meetings with all potential
suppliers. Roemmers works with internationally recognized brands and suppliers.
The company is accustomed to supplier-financed procurement. Reportedly, flexible financial
terms increase purchasing likelihood.
G) Factors that Influence Purchasing Decisions
1. Technical support. 2. Brand recognition. 3. Availability of spare parts. 4. Versatility/flexibility. 5. Financing.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers
Reportedly, the Argentine pharmaceutical market is heavily oriented toward blister packing.
Thus, the company has a natural preference for European firms, particularly Italian and German
firms that manufacture blistering machines. Suppliers of blistering machines are not that
common in the U.S. market, mainly due to the fact that the U.S. market has a preference for
flask/bottle product presentations as opposed to blisters.
Although the company has no purchasing agreements with suppliers, a preference for Mediseal
from Germany and Marchesini from Italy is noted.
Roemmes is interested in working with new suppliers from the United States and acknowledges
the quality of U.S. technology.
Company representatives also noted that European machinery generally feature a 30-year
lifetime and that European brands do not release new models of machinery every year. With a
machinery turnover of 8 to 10 years, Roemmers is assured that the supply of parts by European
manufacturers is guaranteed.
Roemmers personnel indicate that a major disadvantage of U.S. manufacturers is that they tend
to release new machinery models every year and discontinue spare-parts manufacturing for
their older models. This places a major impediment upon local pharmaceutical companies with
regard to buying U.S. machinery.
New market players from India and China are currently pursuing market entry, and have already
signed distribution agreements with local partners.
The company's machinery evaluation based on country of origin is as follows:
Technology
Flexibility
Spain Good Good Bad High
I) Trade Show Attendance / Trade Publication Information
Company representatives are usually invited to attend major industry shows in the United
States, such as Pack-Expo, Germany's Interpack, trade shows in Italy, and Tecnofidta in
Argentina. The firm does not subscribe to any specialized industry publication.
J) Specific Interest
Roemmers would like to receive information on the following machinery:
• Case packing machinery.
K) Contact Information
Company Name:
Laboratorios Roemmers
Gerente de Planta (Plant Manager)
J.E Rodó 6424 1440 Buenos Aires, Argentina
Voice:: 54-11-4630-7700 E-Mail:
[email protected] Website: www.roemmers.com.ar
QUIMICA MONTPELLIER S.A.
Industry: Pharmaceutical Sub-iIndustry:
OTC medicine, analgesics, antibiotics, gynecology products
City of Buenos Aires
USD $1 million (2008-2009)
potential: Specific business
Packaging machine for solid compounds
and filling machines for liquids (syrup).
A) Company Description
Montpellier is a pharmaceutical company that was founded in 1957, as a continuation of another
business run by company owners. In 1976, Montpellier was acquired by another
pharmaceutical firm, Organización Bagónd started a new market
development phase. Currently, the company ranks among Argentina's top 10 pharmaceutical
companies.
B) Main Products Produced and How They Are Packed
Montpellier produces solid (capsules and tablets) and liquid (syrups and drops) specialty
products. The company also packs suppositories and outsources the production of creams.
Solid (tablets and capsules)
Agirax, Alerpiv, Amoxipenil,
Blister (PVC, PVC/Aluminum),
Carbogasol, Cefacilina,
Corteroid, DBI, Dastonil, Diminex, Dioxadol, Eubil, Fluidasa, Fordrim, Fosfo-Acutil, Glemaz, Glidanil, Histamino Corteroid L, Memorex, Metaflex, Migral, Modatón, Mucoxol, NovoAlerpriv, Oxibron, Pasmosedán, Peptazol, Pepticus, Resfrianex, Saldeva, T4 Montpellier, Vizerul.
Liquid (syrup, drops)
Alerpiv, Amoxipenil,
Bottle/flask (PET), dropper,
Cefacilina, Clarimax,
Corteroid, Dioxadol, Fluidasa, Histamino Corteroid L, Memorex, Modatón, NovoAlerpriv, Oxibron, Pasmosedán,Resfrianex.
Suppository, millboard case.
C) Installed Packing Machinery
Montpellier's plant is located in Buenos Aires, and it has separate facilities for the production of
liquid medicine, tablets and suppositories. The average age of the installed packing machinery
at Montpellier is six years.
Information on Montpellier's installed machinery is as follows:
Current Machinery Used
Blistering and casing
IMA 4 Italy 6 N/A
machine Casing machine
Suppository line
Filling machine (liquids)
Labeling machine
D) Last Packaging Machinery Purchase
The company bought a casing and blistering machine manufactured by IMA, from Italy. The
transaction took place in 2006. Previously, Montpellier purchased a filling machine for liquids
manufactured by the Argentine firm Coster.
Machinery
Cost (Approximate)
Casing & blistering
E) Future Packing Machinery Ordering Plans, 2008-2009
Montpellier has a budget of USD $1 million for the 2008-2009 timeframe.
The company progressively equips its facilities with newer technology. In all cases, new
machinery should adapt to the industry's GMP. Furthermore, Montpellier incorporates newer
packaging technology that complement production.
The firm purchased real estate at Buenos Aires' Pharmaceutical Park to build a new industrial
facility in the short term. The new plant's first machinery will include a line for solid compounds
(tablets), which has not yet been purchased.
Machinery
Reason for
Estimated
Purchase
Reportedly, the company is currently seriously considering purchasing a Mediseal line (formerly Klöckner).
F) Purchasing Policies and Financial Arrangements
Montpellier is independent from Organización Bagó, and has autonomy in its purchasing policy
and selection of suppliers. For both organizations, procurement decisions are made in Buenos
Aires. The company buys directly from OEMs, with the intervention of the local representative
when appropriate. Usually, purchases are made in cash or through supplier financing. The
client makes an advanced payment, and then pays the outstanding amount upon receipt of the
machinery.
G) Factors that Influence Purchasing Decisions
1. In-country technical support. 2. Brand recognition. 3. Reliability. 4. Pricing. 5. Flexibility/versatility.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers
Química Montpellier prefers to deal with European suppliers, particularly from Italy. Italian manufacturers, says the firm, generally understand Latin America's disordered idiosyncrasy. In order of preference, Italy and Germany are considered to have the best machinery. Germans provide cutting-edge technology, and Italians better understand their clients. The firm lacks procurement agreements. However, it is in permanent contact with OEMs and their local representatives. Company staff points out that the appreciation of the euro against the U.S. dollar represents a disadvantage to local pharmaceutical companies to continue buying European technology. A Montpellier employee commented that if a purchase entails a production line, the investment can be afforded. However, when a whole new facility needs to be furnished with new equipment, it's a different story. Under the current scenario, the depreciation of the U.S. currency places U.S. manufacturers in a more competitive position with respect to their European competitors. Quimica Montpellier's machinery evaluation based on country of origin is as follows:
Technology
Flexibility
Argentina Good Good Good Very
High / expensive
I) Trade Show Attendance / Trade Publication Information
Company personnel attend international trade shows of the pharmaceutical and packaging
industries. The two most visited are Germany's Achema and Interpack. On occasion, they also
attend the Interphex trade show in New York. The company specialists also attend local
industry shows, such as ETIF.
Pharmaceutical Technology is the publication most widely read by industry specialists. The
company also receives product material and newsletters from suppliers on a regular basis.
J) Specific Interest
Montpellier is interested in receiving information on the following machinery:
• Casing machine for solid compounds (tablets).
• Filling machine for liquids (syrup).
K) Contact Information
Company Name:
Química Montpellier
Dr. Miguel Ángel Pardo
Gerente de Producción (Production Manager)
Virrey Liniers 673 (1220) Ciudad de Buenos Aires Argentina
Voice: 54-11-4127-0000 E-Mail:
[email protected]
Website: www.montpellier.com.ar
SCHERING PLOUGH DE ARGENTINA S.A.
Industry: Pharmaceutical
Oncology, gynecology, diagnosis products.
Province of Buenos Aires, Argentina
USD $500,000 (+)
potential: Specific business
Packing and casing machines for
solids, packing machines for semi-solids (pomes) and packing machines for liquids and injectables.
A) Company Description
The firm started operations in Argentina in 1960 as a subsidiary of Schering Plough from the
United States. The firm has a large industrial plant in one of Buenos Aires' metropolitan
industrial parks. Schering Plough produces and packs its own products. The Argentina
operation is autonomous; however, its management reports to Schering Plough in the United
States.
B) Main Products Produced and How They Are Packed
The company produces the following products:
Aerius, Celestamine,
Blister (PVC / aluminum)
Celestone, Clarityne,
Desenfriol, Ecotrin, Meticorten, Toraxán, Zetia.
Semi-solid (creams)
Diprogenta, Diprosalic,
Pomes, plastic container,
Elocon, Furacin, Gentamina,
Lotricom, Novasone, Quadriderm.
Liquid (syrup, drops)
Aerius, Celestamine,
Glass bottle/flask, plastic cap,
Celestone, Clarityne,
Diprosone, Elocon, Novasone.
Injectables Celestone,
Glass bottle, ampoule, millboard case.
C) Installed Packing Machinery
The company has diverse packing lines for liquid, semi-solid and solid products. Installed
machinery averages 15 years of age. Company technicians perform maintenance internally,
with training provided by the OEM.
Information on relevant installed machinery is as follows:
Current Machinery Used
Blistering & casing machine
Uhlmann 2 Germany 5
(solids) Blistering machine (solids) Blipack
Casing machine (solids)
Filling machine (semi-
solids) Casing machine (semi-
CAM 2 Italy 15 80%
solids) Filling machine (injectables) Uhlmann
Bottling machine (liquids)
Casing machine (liquids)
D) Last Packaging Machinery Purchase
During the last three years, Schering Plough has purchased a full line of equipment for solids, featuring blistering and casing machines manufactured by the German firm Uhlmann. The equipment's approximate value is USD $1.5 million. In 2004, the company bought a CAM casing machine manufactured in Italy.
Machinery
Cost (Approximate)
USD $1.5 million
blistering and casing machines
E) Future Packing Machinery Ordering Plans, 2008-2009
The company does not have a fixed budget for machinery purchases, and does not plan to buy
new machinery during 2008. Due to the elevated average age of its installed machinery, the
firm is likely to replace old machinery by new ones in the future. Reportedly, machinery
investments over the next two years will surpass the USD $500,000 range.
Future purchases are likely to include the following machinery:
Machinery
Reason for
Estimated
Purchase
Filling machines
F) Purchasing Policies and Financial Arrangements
Packaging machinery purchases are handled directly through the manufacturer. The OEM is requested to perform machinery installation and provide training. The company's technical staff conducts maintenance internally.
Schering Plough has purchasing agreements with some OEMs, which are suggested when subsidiaries submit machinery investment plans. Nevertheless, company subsidiaries are at liberty to select suppliers independently. Schering is open to the possibility of working with new suppliers. Currently, machinery purchases are made with the company's own capital, and not with supplier financing.
G) Factors that Influence Purchasing Decisions
1. In-country technical support. 2. Brand recognition. 3. Versatility/flexibility. 4. Pricing. 5. Technology.
H) Comments on Preferred Brands and Existing Business Arrangements with
Packing Equipment Suppliers
According to a company representative, there is a cultural preference for European brands,
especially from Germany and Italy. Such brands include Comadis, IMA and Uhlmann.
Reportedly, the firm is unfamiliar with U.S. machinery, and therefore cannot make a judgment
on its strengths or weaknesses.
Schering's machinery evaluation based on country of origin is as follows:
Technology
Flexibility
I) Trade Show Attendance / Trade Publication Information
Company representatives attend international trade shows, such as Germany's Interpack.
Information on the latest machinery trends is obtained from OEMs and distributors. Also, the
firm receives the publication
Pharmaceutical Technology.
J) Specific Interest
The company is interested in receiving information on the following machinery:
• Packing and casing machines for solids.
• Packing machines for semi-solids (pomes).
• Packing machines for liquids and injectables.
K) Contact Information
Company Name:
SCHERING PLOUGH Argentina.
Eg. Ricardo Foster
Jefe de Ingeniería Industrial (Chief of Industrial Engineering)
Av. San Martín 4550 Lomas del Mirador Pcia. de Buenos Aires, Argentina
Telephone:: 54-11-4003-6574 E-Mail:
Source: http://www.pmmi.org/files/uploads/downloads/sa75_@@_argentinepharmacyreport.pdf
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