Aesica is looking to acquire manufacturing assets in the US to expand its client base in the country and continue the growth it has maintained throughout the economic downturn.
Speaking to in-PharmaTechnologist at Informex 2010 Adam Sims, commercial director at Aesica, acknowledged the difficulties UK-based companies face in securing US clients. Sims believes the addition of manufacturing assets in the US would improve Aesica’s competitiveness.
Currently around 30 per cent of Aesica’s business comes from the US. The goal is to increase this to 50 per cent in coming years and a US manufacturing base would help achieve this.
Sims added that Aesica is also looking to acquire manufacturing operations in mainland Europe. Aesica operates three manufacturing sites in the UK and is looking to consolidate its position in Europe, which is the source of 50 per cent of revenues, by expanding onto the mainland.
These potential acquisitions are intended to continue the growth Aesica has experienced since setting up in 2004. Sims claimed the company is four times the size it was in 2004 and has continued growing despite the economic downturn.
Aesica’s performance in 2009 was “surprisingly good”, according to Sims, who claimed it was a record year. Furthermore, profitability increased by 50 per cent. Sims believes Aesica has achieved this by providing a quality offering and being customer service focused.
These traits have also helped Aesica compete against rivals in emerging markets. Sims added that Aesica’s pricing is similar to its India-based competitors and it has never lost business to emerging markets because of cost.
However, Aesica still experiences price pressure from clients. Big pharma is always applying price pressure, according to Sims, and this is particularly true as a contract matures.
Aesica is also looking to add high containment capabilities at one of its existing sites. This expansion will happen if there is sufficient demand from customers, according to Sims.
Expanding into high containment would follow the addition of controlled substance capabilities last year. Sims said that the controlled substance services have been a success, generating a good order book since they were launched last year.