George Brannigan, Vice President Doug Burke, Director of eSourcing - Betapharm recently implemented the Emptoris ePass system, which facilitates eProcurement activities and, specifically, reverse auctions Industry Information - Pharmaceutical sales experienced average growth in the low teens between 1996 and 2003, single-digit growth was expected over the next few years - Betapharm outperformed the industry - Industry benefited from increased demand and projected future growth due to: o A growing elderly segment o Increased average life expectancy o Rising incidence of chronic diseases - Pricing pressures from managed care and government programs and the migration to generic drugs due - Tao was a strategic partner in the development of Exelon, they developed the basic conversion process - Contractual obligation with Tao ended in2 years - Mang. Was interested in securing a low-cost supplier for the malic acid, thought Tao’s conversion rates were too high - Due to the nature of malic acid, the new supplier would be subject to regulatory approval, which could take a couple of years - Imperative that Tao could not be informed of the search, to avoid current supply risks - Mang. Believed that Asia offered best options for a low-cost supplier - Would require a transfer of chemical process technology - 5 suppliers were identified as potential candidates for the malic acid business - Imperative that each of these
