Business Description:
IDT Australia Limited (IDT) specialises in the development, scale-up and production of potent (HPAPI) pharmaceutical products for local and international clients. The company is located in Melbourne, Australia

Strategy Analysis:
IDT has successfully reduced its exposure to generic active pharmaceutical ingredients (APIs) focusing manufacturing more on high potency API´s and finished drugs where its specialised containment facilities provide a competitive advantage. This was in response to stronger competition in the more commoditised API segment from low-cost manufacturers. The pharmaceutical outsourced services segment is growing rapidly as majors outsource an increasing range of functions. IDT has the potential to grow considerably for several years. Its potential market is many times current revenues. The value of patented pharmaceutical drugs and their potential to cause harm if not precisely manufactured means cost of manufacture is much less important than quality considerations. Pharmaceutical companies will pay well for the assurance of quality. There are also high barriers to entry due to the specialised nature of facilities, including a contingent of around 150 scientists.