Q&A with Timothy Oostdyk, Executive Vice-President and Chief Operating Officer of Lancaster Laboratores

PharmTech:

Do you see a new industry trend emerging?

Oostdyk:

Nearly every segment of our industry is experiencing unprecedented financial pressure. People are being required to do more with less. As the pharmaceutical industry tightens its belt, a few trends are emerging.

First, faced with headcount restrictions and reductions, more pharmaceutical and biopharmaceutical companies are looking to us to meet their business objectives while enabling them to maintain a variable cost structure. This has resulted in significant growth of full-time equivalent (FTE) programs and Professional Scientific Staffing (PSS) programs. FTE programs provide dedicated staff in one of our facilities, and PSS programs provide scientific staff in the client's facility. Both models provide cost-effective solutions to our clients' staffing challenges while minimizing their own fixed headcount.

Second, as companies seek to leverage global capabilities more effectively, they are looking for international service providers who can effectively manage the logistics and communication challenges of operating worldwide. Companies require providers that offer rapid access to real-time data and highly effective project management.

Third, we see significant diversification in the pipeline of much of the industry, as companies merge and acquire products. Companies are therefore looking for laboratory service providers with extensive expertise in synthetic pharmaceuticals and biologics, as well as all types of dosage forms.

PharmTech:

What is the most common demand your clients are currently making of you?

Oostdyk:

Today more than ever, our customers are looking for a highly skilled partner that can fulfill all of their needs, from a relatively simple test to the design and execution of a complex testing program to bring a new biologic to market. We have invested in a comprehensive range of scientific services, expertise, and capacity for both traditional pharmaceutical products and biologics. This extensive range of capabilities in our laboratories, combined with our on-site staffing model, enables us to deliver a strategic solution.