Capital project development in biotechnology industry

Abstract

The biotechnology industry has experienced fast growth during the first 30 years of its existence but is now reaching a stage of maturity. Companies are being challenged by weak pipelines and patent expirations, as well as increasing regulation. Mergers and acquisitions are frequent, and companies are forced to reduce planned capital expenditures, as well as restructure with personnel cuts and facility reductions. This thesis focuses on the affect those changes are having on the development of capital projects. It researches the environment as it used to be and what is now bringing the changes. Through literature search and case study, the thesis aims to capture the reasons for why the main driver of new facilities construction has shifted from time to cost and the affect that is having on the management and delivery of such projects.