Case Study: Lifecycle COGS management for API through backward integration of key intermediates

Customer need

• Save cost of in-house manufactured API ($ 2,000 / kg)

What we did?

• Adopted a Lifecycle COGS management approach to the project
  • Year 1: Transferred API to Digwal (India) site and key intermediate (KI) to Morpeth (UK)
  • Year 2: Improved process during validation and procured part of KI from Korea
  • Year 3: Backward integrated KI manufacturing at Digwal and validated the same during first commercial campaign

Value to the customer

• More than 50% reduction in cost of API over 3 years
  • Year 1: reduction of $ 800
  • Year 2: reduction of $ 215
  • Year 3: reduction of $ 60