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    Features

    Pharma Packaging Roundtable

    Contract Pharma talks trends with contract packagers.

    Pharma Packaging Roundtable
    Comar’s newly acquired iMARK Molding facility in Woodville, WI. iMARK, a Comar company, specializes in complex scientific injection molding, automated and manual assembly, and cleanroom operations. (Photo courtesy of Comar)
    Pharma Packaging Roundtable
    Some highlights from Technavio’s latest market research report on the global pharmaceutical contract packaging market. (Credit: Technavio)
    Tim Wright, Editor, Contract Pharma03.04.20
    The growth in the number of new drug approvals is creating strong demand for pharmaceutical contract packaging. The global contract packaging market will be growing at a compound annual growth rate (CAGR) of more than 17% during the years 2019-2023, according to a recent report published by Technavio. The report also predicts the value of the market will grow more than $6 billion during the same time frame.

    In this roundtable discussion we talk packaging trends with several vendors in the market, all offering flexible solutions as they operate diverse packaging units for different product lines. We also discussed how customer demands are evolving and the ways these packaging organizations are bolstering their capabilities to meet them.

    What are today’s key trends in the pharma outsourcing sector from a contract packager’s perspective?

    Joe Luke, Vice President Sales & Marketing, Reed-Lane:
    As a contract packager we are experiencing growth and more inquiries for secondary packaging and kitting of vials with some of it requiring cold storage. This is the reason that we added cold storage and a dedicated packaging suite for these products in 2019. Over the last few years we have also seen more growth in bottle filling and packaging. Though recently we have been seeing more demand for blister packaging.

    Lastly serialization of product has now become a given or something that almost everyone is now accustomed to. However, with new customers time must be factored in for the integration of the two companies for the exchange of serialized data. And even though aggregation is not legally required until 2023 most customers are asking for aggregation and Reed-Lane actually prefers to aggregate. I don’t think this was something that we all thought would be fully embraced this early. 

    Scott Hanmer, Senior Vice President, Praxis Packaging Solutions: Fueled and inspired by the giants of the industry, e-commerce brands are emerging more frequently using a simple platform and streamlined product offering. Many of these brands focus on gender or age-specific target markets and have seen rapid growth. As these companies grow and even more continue to launch, they will continue to rely upon outsourcing and contract packaging to support their business models.

    Sustainable packaging also remains in the spotlight and a driving force in packaging and package design. As many of these are new package designs employ new materials and technologies, it has led to more upfront collaboration and partnership with contract packagers in their design. Close collaboration is vital when launching these new designs effectively into the market.

    Technological advancements in all areas have made substantial impacts to quality and service levels. The contract packaging industry itself is being recognized for its growth and is fostering the development of new and innovative equipment and systems. Nulogy, for example, developed “PackManager,” a production management system designed specifically to help contract packagers modernize and grow their business.  Our New Jersey-based company, Unette, has recently seen remarkable improvements in production, logistics, and quality performance through the implementation of this software.

    Reid Lederer, President, Pharma Packaging Solutions: The interest in sustainable packaging—moving away from plastic and glass containers to paperboard where possible—continues to grow. We do have the ability to provide renewable, paper-based cartons which can be filled with dry, semi-solid or wet contents - this has been of particular interest. For compliance, Pharma Packaging Solutions heat-sealed blister cards are sustainable by their very nature since they are paper-based and can be recycled in over 82% of U.S. markets.

    We also see an interest in a low humidity packaging environment—perhaps because we can hold less than 3% humidity at 70 degrees Fahrenheit and we advertise that fact, we do receive inquiries on this capability. So, from our unique vantage point, it seems that quite a few drugs do require low humidity.

    Interests in cold chain/temperature control packaging services continue to grow. Again, many requests include the need for cold chain storage and transportation. Likely, the growth in parenterals and injectables is fueling this specification.

    Vlad Spehar, Director, Business Development – Packaging Services, Jones Healthcare Group: The introduction of Health Canada’s Plain Language Labelling (PLL) Regulations to the Canadian market has led to a number of packaging conversions for OTC products to help our customers comply with new requirements. Our early collaboration with global pharmaceutical customers selling into Canada combined with our regulated packaging expertise, proven multi-panel folding carton and label portfolio, as well as our filling and packaging services have driven forward our business significantly in this area while ensuring customers launch compliant products to the market quickly.

    We have also seen an increase in trade customization projects, including packaging formats for wholesale club stores––a retail segment that continues to grow.

    Pouch/sachet sampling programs across all of our target markets and niche medical device packaging services have also been on the rise in recent years.

    Scott Conklin, EVP Sales & Marketing, Comar: Customers’ preference to find a one-stop shop contract packager to consolidate their supply base to increase speed to market, reduce risk, drive cost out, and simplify their supply chain. This extends to their preference for their strategic supply chain partners to have a footprint that aligns with their fill-site demand and ultimately usage/consumption which often means within 500 miles of their location and a global footprint for Tier 1 customers. It also extends beyond historical core competencies of shoot and ship component manufacturing to higher value add services pre- and post-molding. Pre-molding services often include blue-sky ideation, design review, design for manufacturability, human factors testing, prototyping, tool design, unit cavity production, and process validation. Post-molding services include purchased component sourcing, assembly, turnkey packaging, inventory management, coordination with upstream sterilization services, and 3PLs.

    The ongoing trend toward personalized medicine and tailored self-care regimes create the need to be flexible to produce in smaller batches. This is leading to an environment where manufactures must be comfortable operating efficiently in a lower volume, higher mix scenario. 

    There’s increased focus on sustainability throughout the supply chain. For most contract packagers, it starts with product portfolio strategy and how to drive more sustainable packaging solutions by reducing overall plastic consumption, reusing recycled materials, and, at the very least, making sure most products are produced with highly recyclable materials (e.g. #1 PET and #2 HDPE). In addition to the product portfolio, it also extends to in-bound and out-bound supply chain logistics and, of course, manufacturing. For sustainability and cost reasons, we are always challenged to find ways to get more output with less input, especially those inputs with less desirable environmental impacts.

    How are customer demands evolving?

    Joe Luke, Reed-Lane:
    Pharma companies are relying more on their contract packagers for full turnkey services, not just the actual packaging or managing of components. We are not just seeing this from virtual or smaller customers but from large pharma manufacturers. They are asking for input on specifying materials/components and to turnkey services like component testing. Hence, Reed-Lane has developed relationships and contracts with outside providers so we can provide these full turnkey services. Price pressure is always a challenge for all of our customers. But we are seeing this as a large concern with the generic pharma companies. Many are seeing their prices and profits erode due to cost cutting throughout the market with pressure coming especially from companies exporting from outside the U.S. market. As a result, the industry is experiencing some volatility with layoffs, spin offs, exiting certain market segments, etc.

    Scott Hanmer, Praxis: As lead times continue to shrink over time, speed to market and speed to consumer has become more and more critical. Everything happens fast in our industry and seems to be getting faster. Next-day and same-day deliveries have impacted nearly every segment of the packaging sector. Commanding and controlling principle elements of the supply chain through strong vendor management and customer/contractor relationships will be keys to success.

    The flexibility we have at Praxis has been a competitive advantage for many years and enables us to provide the service levels that fit today’s rapidly shifting consumer demands. Whether it is market launches, promotional activities or surge capacity, we are able to supplement some automation with custom fabricated equipment and our flexible labor force. By doing so, we can provide the same or better service levels with little to no capital investment by our customers.

    Reid Lederer, Pharma Packaging Solutions: When a customer chooses a packager of record these days, they do not just expect the basics of bottle and blister packaging, it is more likely because you have something unique to offer. In our case, we do the “difficult” well so if there is a unique closure, a labelling challenge, a necessary temperature or moisture requirement, a unique storage or shipping specification, multiple blister cavities, etc., we are a flexible choice after 25 years of working in this area.

    Vlad Spehar, Jones: As a services provider, our business partners look to us for flexibility within our production schedule to help manage seasonal demand surges––for example, for cold, cough and flu products in winter months. We must be able to add or subtract equipment and resources as needed to ensure robust supply at all times to meet customer requirements. 

    Recently, we have also seen several product line extensions and rebranding programs within the OTC market. We are fortunate to have a highly experienced, long-standing team that guides new and existing customers through the various stages of packaging development in areas such as die line design, optimal tooling manufacture, artwork processing, appropriate packaging material choices, and packaging line trials and validation programs. Our clients expect us to know their products as well as they do and it is this intimate knowledge that allows us to move new programs through development stages more quickly and efficiently.

    Scott Conklin, Comar: The single biggest demand we hear across markets is our need to move faster than ever before. In the past, the big used to eat the small, but today the fast eat the slow. There is clear evidence of this across the board and why so many large CPGs or medical OEMs are losing share to start ups until they become acquisition targets. 

    We are constantly striving to get faster by doing things right the first time and by being proactive and nimble. The need to eliminate process waste and drive speed and execution in all phases of our customers experience pre and post-sale remains a top priority.

    In our business, quality, compliance, service, delivery, lead times, cost, and innovation are becoming table stakes. Everyone touts the same superior performance in these categories. What sets Comar apart is our reliability and ability to maintain best-in-class performance over the long-run. 

    What are some recent business highlights?

    Joe Luke, Reed-Lane:
    We will be adding a 2nd carton serialization suite along with serializing an additional bottle line. Like all existing lines they will be designed to offer serialization from the unit level through three levels of aggregation. Each line features the Optel Group TrackSafe system, and bottling lines feature NJM labelers. All of Reed-Lane’s serialization lines connect to TraceLink to manage and transmit serialized data with customers and trading partners.

    Scott Hanmer, Praxis: Praxis has had several milestones and achievements recently. In October, we finished construction on our second high-speed ISO 8 filling suite. The line enclosed within the suite is capable of filling tablets, capsules, and soft gels in either round or square bottles 40cc and up. The increased primary filling capacity further compliments the secondary packaging and serialization capabilities at Praxis that we have identified as a critical component to the future growth and success of the company.

    In addition to our 30-year anniversary celebration in December, we recently expanded our Expressway facility in Grand Rapids by adding an additional 40,000 square feet. This expansion brings our total footprint to more than 500,000 square feet across three states. Since 2017 alone, we have added hundreds of new jobs and expanded our footprint by 120,000 square feet in total.

    Reid Lederer, Pharma Packaging Solutions: Pharma Packaging Solutions is currently installing new equipment on our primary and secondary lines including more efficient labelers, cappers and sealers as well as serialization and aggregation equipment. Expanded DEA Schedule II-V storage, control warehousing and packaging is now ready for growth.

    We will be adding a new large format press to our printed folding carton division and we do offer liquid filled gable top containers for pharmaceutical or health and beauty products—this is unique outside the food and beverage industry.

    Vlad Spehar, Jones: Earlier this year, Jones unveiled a new corporate identity as we kicked off our 100-year anniversary serving health and wellness markets. At the center of our new identity is a change of our company name to Jones Healthcare Group and an updated corporate logo.

    Through our three business units, Packaging Services, Cartons & Labels and Pharmacy & Medication Adherence, as well as our two European subsidiaries, Venalink UK and Venalink Spain, the company’s new identity aligns closely with a continued vision to advance healthcare with progressive packaging platforms that put consumer well-being first and respond to evolving market needs.

    As Jones Healthcare Group, we are also positioning ourselves against an aggressive growth strategy with plans to invest $20 million into the business over the next two years, including equipment assets to enhance our capabilities and overall service offering. We will share more information on these investments as they roll out.

    Scott Conklin, Comar: We are extremely pleased to have recently announced several major investments that will enable us to better serve our markets and customers. A few of those highlights include our acquisition of iMARK Molding, our capacity expansion project in Rancho Cucamonga, CA and the capacity expansion of our dropper assembly product line. As we look forward, we will continue to make strategic investments in people, processes, systems, and infrastructure to increase customer value. 
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