With estimates that pharmaceutical manufacturing costs 25% of revenues, even a 1% improvement in efficiency produces a remarkable financial benefit. For example, for a company with $20 billion in annual revenue, every 1% reduction in manufacturing cost translates into a savings of $50 million a year. Companies tied to outdated processes and technology are continually creating waste, time-consuming regulatory problems, and lost revenues. PAT also helps companies in other critical ways. Manufacturing processes that use proprietary or analytical technology can provide a barrier to entry for generic competitors, and legal actions that question a manufacturer's quality can become less successful if PAT technologies are in place to prove product consistency.