CEO Michael Lofthagen explained that the “Shanghai office will allow us to source high quality raw materials at competitive rates,” adding that these savings will be passed on to clients.
He told Outsourcing-Pharma that the direct access to local producers that it provides allows the firm to “[bypass] agents and middlemen, and [thereby] reduce delivery time.
“We will typically reduce delivery times and perhaps more importantly getting accurate updates if delays do occur. Costs will be lower the effects will perhaps be more dramatic for API's with lengthy synthesis and high raw material costs.”
Proximity improves monitoring
Lofthagen explained that since the Shanghai unit was opened, it has been used to source “several key raw materials have been sourced for a clinical API synthesis by Syntagon, at [the firms] Swedish cGMP certified site.
“The quality of the raw materials is controlled by Syntagon, typically by verifying identity and purity. For advanced intermediates we will perform on-site inspections of the manufacturer.”
He went on to say that “Being close to the producers gives us a better possibility to monitor the whole process from order to manufacturing to shipment.
“And we monitor this process very closely since we are very much aware of the fact that delivery of raw materials for clinical API synthesis is typically on the time critical path for the whole development project.”
The Stockholm based contract research organisation (CRO) provides lead optimisation, process development, chemistry and crystallisation services for drug firms through to Phase II clinical trials.