Access to Health

Manufacturing &
Supply Chain

Manufacturing &
Supply Chain
Main

Our vision is to be the most trusted and competitive supplier of pharmaceuticals, animal health products, vaccines and biologics to the world’s patients and customers.

Our company is committed to providing patients and customers with a reliable supply of high-quality, safe and effective medicines and vaccines. Our global supply strategy leverages both our internal manufacturing capabilities and those of external manufacturers that provide specialized skills, expertise and various types of manufacturing services.

We manufacture and package products that we distribute to more than 163 markets.

Our Commitments

  • We will maintain strict quality standards and effective supply-chain management to ensure the efficacy, safety and supply of our products no matter where they are manufactured
  • We will sustain an interdependent, flexible supply chain to take into account global and local market supply needs
  • We will engage and invest in local and regional partnerships to enable market access

We manufacture and package products that we distribute to more than 163 markets around the world. Our facilities, along with those of our external contractors, suppliers and partners, make up an integrated, interdependent global manufacturing network that is committed to delivering compliant, reliable supply to customers and patients on time, all the time, and every time.

Our product quality and safety processes and procedures are broad in scope and include stringent standards as well as compliance education and training. We also support industry and regulatory efforts to develop and optimize quality and manufacturing standards worldwide, including alignment with those of the International Conference on Harmonization (ICH). Our commitments in this area are unequivocal, and are essential to our role as a global health care leader.

We seek to develop the capacity and capability to serve a significant proportion of the world’s population. Our manufacturing division has undertaken an ambitious program to reduce the cost of production by reducing underutilized capacity, increasing efficiency through Lean and Six Sigma projects at manufacturing sites, reducing procurement spending, and improving supply performance, including on-time deliveries and reduction of supply shortages.

We have entered into manufacturing and supply agreements with local manufacturing partners to broaden access to our products in local markets. We strive to forge relationships with partners that meet our standards for quality manufacturing and distribution, and today have 148 external manufacturing sites, 33 global alliances and 146 regional alliances that we engage with to provide access to our products.

We manufacture approximately 10,300 product size finishes, and in 2015 produced approximately 90 billion doses of animal health vaccines.

Our global supply-chain strategy is designed to ensure that we are operating a lean and efficient network while ensuring compliance with rigorous quality, safety and environmental standards.

We remain committed to the development and commercialization of our products and to ensuring that we are a reliable global supplier of quality vaccines and medicines.

We continue to optimize our manufacturing capacity for most vaccines, including, as appropriate, redundancy in our supply chain for certain vaccines, so that we eliminate supply disruptions when temporary issues arise in manufacturing. For example, we remain on track to have our facility in Carlow, Ireland, approved to fill GARDASIL®9 (Human Papillomavirus 9-valent Vaccine, Recombinant), our 9-valent HPV vaccine, in early 2017.

In addition, we have committed to investing $168 million to upgrade and expand our manufacturing operation in Elkton, Virginia. In future years we will upgrade plant infrastructure, add manufacturing-related facilities and equipment, and undertake a personnel-training initiative to support the bioprocessing environment.

TARGET ’15

In 2010, we initiated Target ’15, a five-year effort to make a difference in people’s lives by making our medicines more accessible and affordable for the world’s patients and customers. The effort, involving partnerships with local manufacturers as well as enterprise wide strategic planning, resulted in increased availability of our medicines as well as a more competitive company position for our products.

  • A marked increase in ex-U.S. vaccine supply coupled with manufacturing cost reductions means that access to our vaccine products has grown dramatically over the last several years. For example, ROTATEQ® (Rotavirus Vaccine, Live, Oral, Pentavalent) and GARDASIL® [Human Papillomavirus Quadrivalent (Types 6, 11, 16, and 18) Vaccine, Recombinant] doses have more than tripled and are now available in over 60 and 90 markets, respectively.
  • Our significantly increased (by 170 percent) supply volume of STOCRIN (efavirenz) for HIV in China supports increased local demand and combats a growing need for HIV medicine in China
  • Significantly increased access to affordable, long-lasting but reversible contraceptive methods for women in developing countries is helping to lower maternal mortality rates. More than 19 million contraception implants have been produced since 2012.

We continue to focus on internal and external strategies that reduce cost and increase capacity to meet growing supply needs around the world.

 

Performance
Manufacturing & Supply Summary2012201320142015
Number of local and regional manufacturing partnerships to enable access8468104179
Number of products available through local and regional partnerships1343544991,157
1Increase represented in part by better visibility of global partner information.