In the spotlight: David Goodaire

David Goodaire is Managing Director of Biogotec Ltd., a biopharmaceutical business group that offers an optimal service solution for distributing European orphan drugs and speciality pharmaceuticals. He has more than 20 years of business experience. During this time he has worked in the operations field for well-known companies such as Eli Lilly, Chiron, and Encysive.

In your opinion what are the prospects for logistics in the pharmaceutical and healthcare sector?

As the market becomes increasingly complex, with more specialized and targeted regimes of patient treatment, the demands on speciality pharmaceutical companies and their logistics providers become greater. Not only do they need to secure appropriate marketing authorisation to place products on the market, but they must also ensure post-launch compliance for all aspects of product usage, safety, and understanding. In the case of some products designed for rare diseases, post-launch risk minimization programmes are required to ensure absolute patient safety. Marketing authorisation holders and their logistics providers will need to work on distribution processes and communication, so that both patients and pharmacists have a full understanding of the pharmaceutical product they are handling and using. For logistics providers, this means they must have a deeper understanding of the market environment and patient requirements, strong IT solutions, and stringent procedures for product supply.

What are the future growth fields?

It is clear that the days of the blockbuster are over. This insight has driven traditional pharmaceutical companies to re-think their product portfolios. Relentless pressure to drive down costs and the fact that outsourcing is now a way of life indicate that the future will be more complex, with many smaller-niche market players moving toward specialised and customised services. If big pharmaceutical companies do not buy them first! This means logistics providers will have to become even more flexible and versatile, while maintaining their core values such as being on time every time.

How important will it be in the future to offer integrated, comprehensive service?

A speciality pharmaceutical company’s greatest asset is its intellectual property. This is in the hands of the founders. Speed of decision making and delivery to market are key factors for success. These companies do not want the distraction – not to mention the expense – of having to develop large infrastructures to service the market. If there are high-quality and cost-effective outside service providers that can handle local, regional, and European markets, then this is the natural choice. Remember that the core team is thin on the ground and needs a service provider that can solve issues before they escalate to larger problems. The logistics provider is the public face of the speciality pharmaceutical company. The more services an integrated service provider like arvato services healthcare can offer, the more opportunity it has to become the trusted partner of choice and almost a “one-stop shop” for a speciality pharmaceutical company: one comprehensive contract as opposed to 10 individual ones.

Do you fear that companies will stop outsourcing services as a result of the banking crisis?

Absolutely not. With a cost-effective outsourcing model that consistently meets company commitments without wasting precious time or resources, speciality pharmaceutical companies will continue to thrive even in uncertain times. A respectable investment bank said to me recently “Money has to be invested; it is there today. Soft money has gone. A strong model with a good return will get funds.” A little like a speciality pharmaceutical company and its logistics provider. A strong partnership will ride out the uncertainty if it has a strong foundation.