Liquidity Services executive Tom Burton opens his article on the state of the used equipment market, published earlier this month in BioPharm International, with a clear market summary: “Mainstream adoption of buying and selling used biopharmaceutical equipment has created an economical way for organizations to make and save money through the resale of surplus assets.”
Many people would not be surprised to know that most dollars in the pharmaceutical industries are spent funding research and development of pharmaceutical drugs. However, as the market changes, certain health care needs take precedence, and regulations modify with election cycles, the equipment required to produce the latest drugs must also adjust to meet the needs of consumers and regulatory compliance.
As Tom Burton — the President of Liquidity Services’ Capital Assets Group — mentions, it was “unheard of for pharmaceutical companies to sell surplus equipment on the secondary marketplace” even 15 years ago. “Instead, most equipment would end up sitting idle in a laboratory or would be disposed in a less than environmentally conscious fashion.”
It’s no longer acceptable for non-sustainable means of asset disposal to be an option on the table and as companies continue to focus on their core business, the disposition of surplus and idle assets can become an efficient tool for growth and innovation.