Biopharm Services Cost Database Update 2023 for BioSolve Process is Launched!
Our reference Hybrid Mab Process has experienced a 23% increase in manufacturing costs since 2021
First, what is BioSolve Process?
Are you developing a new bioprocess or assessing new technology and wondering about the impact on your economics, production facilities, technologies, and the environment? Look no further than BioSolve Process! With our robust software application, you can build a scalable model of your process and evaluate everything from production capacity to manufacturing cost, life-cycle assessment factors, and investment requirements.
What is Cost Data?
Our cost database is regularly updated with the latest industry-averaged costs for raw materials, buffer salts, consumables, single-use components, and capital equipment, ensuring you get the most accurate economic analysis possible. This is our standard Database included in BioSolve Process.
What is this Blog about?
And the best part? Our latest cost database update for 2022/2023 is now available to all BioSolve Process License holders1! We’ve been providing these updates for the past ten years, and they’ve helped us track long-term cost trends in the industry.
Unfortunately, after a period of low inflation, we’re now seeing rapid cost increases across all cost categories except for labour (which is a lagging indicator). Using a reference Hybrid single-use process based on the Biophorum standard monoclonal model2, we can track the impact of these cost increases on bioprocess manufacturing. And the results are eye-opening: since 2021, our bioprocess manufacturing costs have increased by 23% over the last two years (11% per annum). This starkly contrasts the period from 2017 to 2021, where manufacturing costs rose by only about 2.5% per annum.
So, what’s driving these cost increases?
We’ve broken it down into the cost categories of materials, consumables, capital equipment, labour, and QC tests and identified the key contributing factors. For our standard Mab reference process, three cost categories account for over 80% of the cost (labour, consumables, and capital). Increases in consumables and capital account for around 80% of the rise in manufacturing costs since 2021. It’s clear that supply chain turmoil post-COVID is significantly impacting our industry, and it’s more important than ever to stay on top of these cost trends and adjust our strategies accordingly. So why not let BioSolve Process help you navigate these challenges and achieve success in your bioprocess operations?
Materials: This pertains to media components and buffer salts that meet GMP/ACS standards. Prices have increased by 10% to 50% for all monitored features, with an average increase of roughly 30%. The cost of the materials utilised in monoclonal antibody production has increased by 20%.
Capital: Our quotes for 2023 include costs for both single-use and reusable bioprocessing equipment, and we have seen the highest increase and variation in this category. The increases range from 0% to 75%, with an average increase of 30%. The cost increases vary significantly from 9% for filter housing to 82% for stainless steel vessels. The material component used in monoclonal antibody manufacture has experienced a significant growth of 45%, making it the most expensive category compared to 2021. BioSolve Process considers the cost of capital in its calculations, which assumes bank interest rates and investment risk. As bank interest rates rise, the average price of money in the biopharma sector has increased from 4.75% to 7.70%, and we amortise the capital investment over the facility’s life.
Labour: Labour costs at the review time had not significantly increased compared to 2021 and have remained unchanged. The prices are based on North America and Europe.
Consumables: This cost category covers fluid management components, resins and filters. Consumables cost increases were typically in the range of 25-30%. The material component used in monoclonal antibody manufacture rose by 26%.
Other: The category covers Waste Management, Maintenance, and utilities. Among these expenses, utilities are the most significant contributor to the overall cost. In the latest cost update, there has been an increase in the price of electricity and gas, with a factor of 1.35 and 2.0, respectively.
Quality Control Tests: We determine the costs of QC testing by analysing the typical operating procedure for each test by considering the equipment, materials, consumables, and labour used for the test. This category’s price increase is between 0% to 20%, with an average increase of 10%.
For those already using BioSolve Process, the Cost Data is already available for you to Download through our User Portal – BioSolve Central. Please do not hesitate to contact Support if you have any questions.
We hope you find this article very helpful and insightful. Next, we will report to you some Sustainability Related changes. Watch out for this space! To get up-to-date information, the best is to follow us on LinkedIn.
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