major global pharmaceutical manufacturer projected that a recently acquired manufacturing site for biologicals production and packaging would never become profi table under existing start-up plans. But they were reluctant to resort to a CMO located far from the prod- uct’s largest market. So the company chose Tunnell to determine if the cost- base at the site could be suffi ciently reduced to justify putting the plant into commercial operation. The Result: A combination of process improvements and a projected headcount reduction of 30% that would save $10 million annually, reduce cost of goods sold by $13.5 million, and put the plant solidly in the black. Planning for Profi ts: Getting Organizational Design Right in Biologicals COST REDUCTION major global pharmaceutical manufactu

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