I recently joined GxP Systems MD Linda Mellerick at the Cork Electrical Industry Association’s Annual Conference at the Radisson SAS Hotel, Little Island, Cork. The theme for this year’s conference was “The Changing Role of Manufacturing in Ireland,” which produced some very relevant topics for our own business.

Proceedings began with a short introduction by Cllr John Buttimer, Lord Mayor of Cork. Mayor Buttimer spoke of the challenges facing the manufacturing industry (labour shortage, logistical issues, greater competition from emerging nations such as Ukraine, China, etc) and suggested they must be tackled by educational bodies, chambers of commerce and the companies themselves by continuously lobbying government for increased resources aimed at education.

Michael Devane, chairman of the conference, spoke next on the importance of sharing industrial and technological developments with young people in order to make them more aware of the opportunities for technical professions, including engineers and scientists. He quoted an executive from an un-named company who invited a local secondary school group to attend a conference about trends in electronics; the executive remarked that the energy in the room created by the kids attending was remarkable, transforming a usually quite mundane event into something much more productive for all attendees.

Caroline Dowling, Flextronics President, Integrated Network Solutions, and our first guest speaker, discussed the “Internet of Things”. She provided valuable insight into how Cloud Computing will affect us all, from being able to make a call on a glove to monitoring a sleeping infant using a wearable patch – all connected to wireless devices. Caroline spoke passionately about Right Shoring–the importance to multi-nationals of choosing correct locations for manufacturing operations. She showed a fascinating infograph depicting the effect that an increase in the price of oil to $250 a barrel would have on production costs – Ireland would rank as the most competitive against Ukraine, China, Singapore and Mexico —proving once again that Ireland is an excellent choice for business.

The penultimate speaker was Tom Mangan, VP Operations and General Manager, Boston Scientific Cork. Tom gave an overview of Boston Scientific Corks’ five-year strategic plan and how the company puts a focus on quality of care to its customers. He showed a heartwarming video of how his company’s products saved the life of a young girl from Boston who suffered from a number of aneurysms. His final message before signing off was “Remain relevant; stay competitive,” an important message given growing global competition.

Our final speaker of the day was Bob Savage, Vice President and Managing Director at EMC Ireland. Bob began with a powerful quote “Leadership is about seeing around corners.” He spoke of the reasons that Ireland is such an attractive place for multi-nationals (with benefits like educated workforce, reputation, tax incentives, political stability, innovation, and being one of the only English speaking countries in the EU), and outlined the four phases that EMC went through as a manufacturing facility since the company’s arrival in Cork in 1988. In order to maintain our educated workforce, Bob said that EMC and VMware (their sister company specializing in virtualization and cloud infrastructure) are educating the unemployed by offering a conversion programme and Cloud computing courses.

All in all, the speakers, each one a leader of industry, provided valuable Insights into the changing manufacturing industry in Cork and Ireland and the opportunities that lie ahead for all businesses. I came away from the meeting greatly encouraged by the recognition that GxP Systems and Ireland are both in strong positions to support manufacturing growth.

By Damien Hanley
Marketing Specialist
GxP Systems

For an article in the latest edition of Women Mean Business (WMB) magazine, Deirdre O’Shaughnessy, editor of the Cork Independent, asked Linda Mellerick about her experience as Managing Director of GxP Systems. As Deirdre tweeted that she was very impressed by Linda, a noted former camogie player, we thought we would share the interview questions and answers in their entirety:

Linda: To begin and the fact that the majority of your readers won’t be familiar with this industry and the terminology let me explain in layman’s language what GxP does. GxP Systems is a privately-owned Cork-based company. For 16 years, we have been providing Engineering specialists to the life sciences industry, such as pharmaceutical and medical device manufacturers. As you can imagine, every tablet or medical device, such as a stent, that you put into your body needs to go through rigorous testing and a rigid process to ensure that the drug or device, from a quality and specification point of view, is absolutely rigid in accordance with FDA (U.S. regulatory body), EMA (European Medicines Agency) and IMB (Irish regulatory body) requirements. GxP Systems project manages and executes this process in a highly documented fashion. Some of our customers here in Ireland, Europe and the U.S. are of the strongest, largest life sciences companies globally such as Boston Scientific, Abbott, Creganna, Heartsine and Invacare.

Deirdre: I see you began as Operations Manager in GxP Systems and rose to become General Manager. What does the role involve? What’s your favourite aspect?

Linda: As MD I’m responsible for the strategic, operational and financial side of the business. It’s demanding, it’s challenging but very exciting at the same time. The industry at the moment is favourable to GxP Systems’ offering and I am driven to maximise that to its full potential. This energises me. I love the diversity in the job. Every day is different. I could be in the office dealing with one thing or another or customer facing.

GxP Systems grew by 67% in 2012. The challenge now is to grow further in 2013. When you raise the bar you’ve got to keep raising it.

Deirdre: Is it a good time to be working with pharmas etc?

Linda: From GxP Systems perspective it’s an excellent time to be working in the pharmaceutical/medical device industry, particularly if you’re willing to be flexible and travel. The struggle GxP Systems will actually have will be sourcing skilled experienced engineers as we grow further. Despite the times in which we find ourselves, there is a shortage of skilled resources in Ireland. During the construction boom I think many graduates headed for that sector and it is hitting us now in life sciences. Many ignored or were unaware of the national presence of these global giants and what they could offer. Recent figures from IDA reference that Ireland is home to nine of the top 10 global pharmaceutical corporations and 17 of the top 25 global medical device companies.

I believe we need to create awareness sooner. These are interesting corporations making very interesting drugs and devices. I think we need to create that academia and industry link sooner than we are.

GxP Systems commenced a graduate programme twelve months ago and we have hired a number of personnel who are working out very well. We will continue with that programme but experienced engineers are our current need.

Deirdre: Do you think your sporting career influenced your choice of career and your leadership style?

Linda: Absolutely. It has certainly instilled in me drive, responsibility and energy. With regards leadership – I suppose I do expect a high performance and effort from my team. Several commonalities and links can be drawn between sport and business; team sports in particular. One of the important learning points from sport which correlates to business relates to the examples of teams with reputably the best individual talent and ability, yet have fallen short of performance expectations. High-performing teams, therefore, do not necessarily have the best individual talent and ability available, which means that other variables such as motivation, respect, responsibility, and communication are high on their agenda and of paramount importance. A player with those attributes is an inter-county or national player in my view, and we all want those players on our team whether in business or sport.

Deirdre: You must travel a lot in your job; is this difficult and do you enjoy it? (Any tips for how to live out of a suitcase?!)

Linda: Thankfully I don’t live out of a suitcase. I do travel a bit but that comes in peaks and troughs really. The balance is good and I tend to plan ahead. There are always ad hoc trips of course. At times I enjoy it but it’s not as glamorous as people think. It can be tiring and of course when flights don’t go to plan, very frustrating. I tend to get in, do what I need to do and get out and don’t have time for sightseeing. These few weeks are busy with both international and national travel but it’s all part of the job.

Deirdre: Anything else you think is relevant – recent wins for the company etc – would be more than welcome.

Linda: We’ve a fantastic team here at GxP Systems; highly skilled, responsible engineers who take pride in their work. We also have a very motivated management team. From my perspective having the right team in place is fundamental to the success of any business. I’m a firm believer that you are only as effective as the team you build around you.

In our earlier blog about the 2010 Heparin Incident, you saw evidence of how a tragic failure in the supply chain led to increased scrutiny in supplier controls. In this post I will outline a more recent tragedy – – this time with its roots in the distribution chain.

In 2012, fungal meningitis has killed 32 Americans in 19 states and caused sickness to over 450 patients. The meningitis has been traced to the Massachusetts-based New England Compounding Center (NECC) which compounded and distributed contaminated pain injections.

Compounding pharmacies like NECC fill special orders, placed by doctors, that are tailored to individual patient needs. Often small family-run businesses, these pharmacies typically fulfil a small number of customized formulas each week and have been policed by state pharmacy boards in the U.S. However, some of these companies have grown significantly and now ship thousands of formulations of finished drugs to multiple states. NECC is one such company. Its operations more closely resemble those of a large manufacturing business than the “Mom & Pop” image of a local pharmacy.

After investigations of the meningitis outbreak by laboratories at the U.S. Food and Drug Administration (FDA) and Center for Disease Control (CDC), the FDA has said: “The FDA and CDC laboratories have identified bacteria present in three separate lots (batches) of NECC-supplied preservative-free injectable betamethasone, with each lot producing different culture results, and in a single lot of NECC cardioplegia solution.“ U.S. state and federal officials, relatives of the deceased and other victims are in the process of giving testimony at a Congressional Hearing. This story is drawing widespread commentary in the media and appears to point to a blind spot in regulatory oversight of these specialist businesses, especially compounders who have grown to a significant scale.

The roots of the Heparin incident were found to be in China, an emerging region in terms of its activity on the newly globalized supply chain. However, what I find remarkable about the NECC incident is that it occurred in Massachusetts, a center of excellence in the global life science industry and one of the most robust and mature regulatory environments in the world. These incidents are at opposite reaches of the supply and distribution chains, yet the failures in Good Practice (GxP) that led to these deaths are very basic by the standards of modern day healthcare.

FDA Commissioner Margaret Hamburg has been grilled by the House Committee and much of the debate has centered on overlap (or lack thereof) of the agency’s federal reach relative to the role of individual states in policing pharmacies. In light of the NECC case, Hamburg’s important speech of January 2010 “Protecting Health: FDA’s Global Challenge” contained some prescient commentary.

In earlier blogs we compared the perspectives of purchaser and supplier in the reconfigured supply chainand then looked at the purchaser in a little detail. Let's now look at the journey being taken by the Contract Manufacturing Organization (CMO).

As noted in my last post, the widespread use of CMOs by branded pharmaceutical producers is relatively new. CMOs have been around for decades, but were often associated with relatively low volumes of specialist batches, for instance those required in the early stages of drug development for clinical trials. CMOs focused primarily on manufacturing and typically avoided product development or product marketing. This meant the focus of quality and compliance could apply to a relatively small footprint of activity. The CMO would submit product to meet the purchaser's stringent quality controls, while the branded pharmaceutical producer effectively tested and inspected the product for compliance. In this scenario the risk to patient safety was low and neither regulator nor purchaser had undue cause for concern.

However, the CMO industry is growing at rates projected at 12% per annum through 2016. The buyer wants more from the CMO than specialist batches. The buyer's objective now is to build significant capacity, flexibility and cost effectiveness into its manufacturing supply chain. In addition to ramping up manufacturing capacity to meet this demand, the CMO must build a new level of competence in quality and compliance as the buyer is pushing that responsibility onto the CMO.

The biggest challenge facing a CMO is to find a compliance model that fits its lean operating model. The compliance model that runs in big pharma is regarded by the CMO as heavy-handed, inflexible and expensive to run. in short, CMOs need to develop a model for compliance that's both lean and flexible, yet delivers the level of quality assurance required by their customer (the branded pharmaceutical company) and ultimately by the regulator.

In my next post I'll comment on the regulators perspective.

In our earlier blog about the different perspectives of purchaser and supplier in the reconfigured supply chain. you heard in brief how the challenge presented is different for both parties. Let’s look in a little more depth at the journey the tier 1 producer is travelling.

The use of Contract Manufacturing Organizations (CMO) is a relatively recent phenomenon, particularly in pharma, and somewhat less so in the medical devices industry. Prior to outsourcing, the typical pharmaceutical company is a self-contained unit with a well established set of Good Manufacturing Practices (GMPs) and a robust and well embedded set of controls for the procurement of materials, equipment and services.

New or replacement equipment is procured with the assistance of the engineering function, which typically has a robust and mature system of specification & design, validation & documentation, qualification, etc.- essentially all the necessary disciplines for good lifecycle management. Service providers fall in with the established GMP procedures for the site as directed by site management. In the case of substantial capital projects, the service provider (typically a project management and engineering services firm) is retained to oversee the design, installation and qualification of new facilities. While these firms bring their own well established quality practices, the project brief invariably demands adherence to the buyers established engineering practices.

Incoming materials are procured through a well established relationship with the vendor and almost certainly subject to a rigorous quality control check as they arrive at the warehouse. In this example, the outsourcing of any meaningful chunk of manufacturing has not yet happened. Supplier controls have been limited to raw materials, so the risk to patient safety from events outside of the facility have been pretty low, and regulators have not had reason for concern.

The scenario painted above is no longer the story of our industry. Outsourcing has become mainstream and is now of sufficient size as to represent significant risk. Tier 1 and regulators are on a fast trajectory in learning how to manage this risk.

n our earlier blog about the different perspectives of purchaser and supplier in the reconfigured supply chain. you heard in brief how the challenge presented is different for both parties. Let’s look in a little more depth at the journey the tier 1 producer is travelling.

The use of Contract Manufacturing Organizations (CMO) is a relatively recent phenomenon, particularly in pharma, and somewhat less so in the medical devices industry. Prior to outsourcing, the typical pharmaceutical company is a self-contained unit with a well established set of Good Manufacturing Practices (GMPs) and a robust and well embedded set of controls for the procurement of materials, equipment and services.

New or replacement equipment is procured with the assistance of the engineering function, which typically has a robust and mature system of specification & design, validation & documentation, qualification, etc.- essentially all the necessary disciplines for good lifecycle management. Service providers fall in with the established GMP procedures for the site as directed by site management. In the case of substantial capital projects, the service provider (typically a project management and engineering services firm) is retained to oversee the design, installation and qualification of new facilities. While these firms bring their own well established quality practices, the project brief invariably demands adherence to the buyers established engineering practices.

Incoming materials are procured through a well established relationship with the vendor and almost certainly subject to a rigorous quality control check as they arrive at the warehouse. In this example, the outsourcing of any meaningful chunk of manufacturing has not yet happened. Supplier controls have been limited to raw materials, so the risk to patient safety from events outside of the facility have been pretty low, and regulators have not had reason for concern.

The scenario painted above is no longer the story of our industry. Outsourcing has become mainstream and is now of sufficient size as to represent significant risk. Tier 1 and regulators are on a fast trajectory in learning how to manage this risk.

In my next post I’ll comment on the supplier perspective .