BioPharm: What do biopharmaceutical companies just starting out need to keep in mind in terms of planning a new facility's location and construction?Lacey: There are many factors to consider in terms of choosing location, but some are key. First, the reality is that finance and commercial aspects are major considerations. The second category I would look at is the infrastructural side and the existence of support services. Finally, for me perhaps, the most important factor to consider is the people who run the factory. People are the most important asset a company has.
To expand on those three categories, let's look briefly at the financial and commercial side of things. Corporations are interested in corporation taxes, local taxes, and charges that they will pay in a particular location. They will be looking at their transfer pricing policy. They may have a treasury strategy. They may set up their financial headquarters in a particular location alongside their manufacturing base.
Companies will surely look at the availability of granted training support, and they will be very interested in their cost base; that is, the cost of labor, salaries, wages, transport, and shipping. Very importantly in the European context, companies will be interested in access to markets in certain countries, particularly European Union countries.
Looking at the infrastructural and support services side of things, manufactured product must be brought to the market. Therefore, effective distribution, including storage and freight transport by road, rail, air, and sea, are very important. With regard to a specific location, a company may prefer to set up where there is already a cluster of similar clients with similar requirements. If such a cluster exists, there is likely to be support services available such as laboratory services, maintenance services, project management, regulatory expertise, etc. as well as educational and research support from nearby institutes and colleges.
The third category, people, is based on who will operate and manage the plant. It is crucial to have a strong pool of talented people who are well educated, experienced, and flexible. Those people should also have continuing access to training and education.